UPI NewsTrack Business

Stocks rally sharply

NEW YORK, Aug. 28 (UPI) -- U.S. stock indexes rose sharply Thursday buoyed by a strong economic report, a financial sector rally and a surprising turnabout in oil prices.

The Dow Jones industrial average was up 212.67 points, or 1.85 percent, for the day at 11,715.18.

The Nasdaq composite rose 29.18, or 1.22 percent, at 2,411.64. The Standard & Poor 500 was up 19.02, or 1.48 percent, at 1,300.68.

Treasury prices fell. The benchmark 10-year shed 8/32 to yield 3.795 percent.

The dollar was mixed. The euro recently fell to $1.4688, compared to $1.4722 late Wednesday. Against the Japanese currency, the dollar recently fell to $109.59 yen, down from $109.61 yen.

Overseas, Tokyo's Nikkei 225 closed flat at 12,768.25 and London's FTSE 100 fell 0.24 percent to 5,514.90.

Meanwhile, the U.S. Commerce Department said in a report that the economy grew in the second quarter at a 3.3 percent annual rate. That's almost double the 1.9 rate in the government's first report on the period's growth.

Oil slips, natural gas big loser

NEW YORK, Aug. 28 (UPI) -- Crude oil futures closed down 2 percent in New York Thursday after two days climbing as producers and refiners made ready for a storm.

Crude prices for December delivery closed at $115.75 a barrel, down $2.40.

With Tropical Storm Gustav expected to become a hurricane again and heading for the Gulf of Mexico, oil people were preparing for the worst and several companies were evacuating many of their personnel from off-shore facilities just in case.

The storm's projected course takes it through the heart of U.S. offshore energy production, threatening about 25 percent of domestic oil and 10 percent of gas output.

Oil's advance suddenly halted Thursday after a bigger-than-expected climb in U.S. natural gas supplies renewed concerns about weaker energy demand.

Natural gas prices led the losses in the energy sector Thursday, with October natural gas down 55.8 cents, or 6.5 percent, to close at $8.05 per million British thermal units.

Heating oil was down 7.17 at 319 cents a gallon and refurbished gas was down 4.72 cents a gallon.

At the pump, U.S. motorists paid an average of $3.660 for a gallon of regular unleaded gasoline, slightly lower than Wednesday's $3.667.

Starbucks adding breakfast fare

CHICAGO, Aug. 28 (UPI) -- Starbucks plans to offer healthier breakfast options next week in a new effort by the U.S. coffee chain to lure McDonald's morning crowd.

Starbucks' new items, to be offered Wednesday, include an apple bran muffin, oatmeal and a fruit and nut bar. There's also a "power protein plate" featuring a hard-boiled egg, whole wheat bagel, fruit, peanut butter and cheese.

The move is part of a plan by Howard Schultz, chief executive officer and founder of the Seattle chain, which posted a sales drop last year, Crain's Chicago Business reports.

Bassinet deaths under investigation

CHICAGO, Aug. 28 (UPI) -- U.S. authorities are looking into a possible design flaw link between two baby deaths and a popular bassinet, the Chicago Tribune said.

The deaths came about a year apart -- one involving a 4-month-old Noel, Mo., girl last September and the other involving a 6-month-old girl last week in Shawnee, Kan. -- both involving a Simplicity bassinet.

The Tribune, which won a Pulitzer Prize last year for an investigation into similar deaths, said one family sought a recall but the U.S. Consumer Product Safety Commission is considering a warning label.