U.S. stocks head lower
NEW YORK, July 21 (UPI) -- An early boost in U.S. stock indexes tailed off to the close Monday with major boards ending with modest declines.
Stocks gained on better-than-expected earnings by Bank of America and news that Swiss drug maker Roche Holding AG had offered to buy the 44-percent stake of biotech company Genentech that it doesn't already own for $43.7 billion.
But, oil prices rose Monday, worrying investors about another round of commodity inflation.
The Dow Jones industrial average was down 29.23 or 0.25 percent at the close to 11,467.34. The Standard and Poor's 500 fell 3.25 or 0.14 percent to 1,260.00. The Nasdaq composite index lost 3.25 or 0.14 percent to 2,279.53.
On the New York Stock Exchange, 2,034 stocks advanced and 1,115 declined on a volume of 1.204 billion shares traded.
The 10-year U.S. Treasury note rose 12/32, yielding 4.04 percent.
Overseas, the euro traded at $1.5927, compared to $1.5899 Friday. Against the yen, the dollar was at 106.43, compared to 106.70 yen Friday.
Tokyo's Nikkei index was closed Monday for a national holiday. London's FTSE gained 27.90 or 0.52 percent to 5,404.30.
In London, the FTSE 100 index gained 27.90 to 5,404.30, up 0.52 percent.
Second stimulus check plan considered
WASHINGTON, July 21 (UPI) -- Many economists are expressing general skepticism regarding Washington political leaders' consideration of a second economic stimulus package in 2008.
Some argue it's a good idea if done differently from the first time but others are doubtful that money will circulate through the economy quickly enough or that recipients will spend the checks rather than deposit them in savings, The Christian Science Monitor reported Monday.
"The downside risks are significant. Another well-timed and targeted stimulus package would be helpful," Mark Zandi, chief economist at Moody's Economy. com, told the Monitor.
But University of Michigan economist Joel Slemrod has been studying what taxpayers have done with their first rebate checks.
"So far, we're finding that 20 percent of the people say the rebate led them to spend more," says Slemrod, noting that in May, the personal savings rate also soared to 5 percent, up from 0.4 percent the month before.
He told the Monitor he has a "wait-and-see" attitude about a second stimulus package. "I'm not sure we would want to do a second dose the same (way) as the first dose," he says.
Swedish journalist subsidy plan debated
STOCKHOLM, Sweden, July 21 (UPI) -- Sweden's journalists union is accusing the European Union of colluding with a giant media firm to do away with the country's system of subsidizing newspapers.
The union argued Monday in Dagens Nyheter that the EU Commission has joined with international media firm Bonniers to help push for reductions in support for major Swedish newspapers from the current level of 65 million kronor ($10.7 million) to 17 million kronor ($2.85 million) over a five-year period. The article also accused Swedish EU Commissioner Margot Wallstrom of making proposals to stifle public debate of commission business in general.
In particular, the union of journalists says it has been denied access to documents. Included was a letter from Bonniers to the commission and a 2006 report criticizing the press subsidy system, titled "A costly failure," as well as 2007 memorandums titled "The subsidized profit machine" and "The newspaper Svenska Dagbladet and the Swedish press subsidies."
Sara Lee to change bread labeling
DOWNERS GROVE, Ill., July 21 (UPI) -- Illinois-based consumer goods giant, Sara Lee, announced plans to add text to labels for its "Whole Grain White Bread" specifying it is 30 percent whole grain.
The company's decision came as a settlement with the Center for Science in the Public Interest, a non-profit nutrition organization that nearly sued the company because the bread's packaging indicated it contained the same amount of fiber as 100 percent whole wheat products, a news release said Monday.
Federal parameters suggest at least half the grains people eat should be whole, so the company's indication that its "Soft & Smooth Made With Whole Grain White Bread" is made with only 30 percent whole grains will clarify what consumers are buying, the release said.
"This settlement will help consumers comparison shop among breads: plain white bread, breads like Sara Lee's with 30 percent whole grains, and 100 percent whole wheat bread," CSPI executive director Michael F. Jacobson said.
