UPI NewsTrack Business

Stocks spurred by good economic report

NEW YORK, Aug. 28 (UPI) -- U.S. stock indexes advanced Thursday spurred by a surprisingly strong economic report while storm-conscious oil prices slowed its rise.

The Dow Jones industrial average was up 163.17 points, or 1.47 percent, at 11,665.68 at midday. The Nasdaq composite climbed 18.64, or 0.78 percent, at 2,401.10 and the Standard & Poor 500 was up 11.89, or 0.93 percent at 1,293.55.

Treasury prices fell. The benchmark 10-year note shed 4/32 to yield 3.784 percent.

The dollar strengthened against the euro and stood at $1.4684 against $1.4777 late Wednesday. Against the Japanese currency, the dollar recently fell to $109.546 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.

Crude oil reports loss

NEW YORK, Aug. 28 (UPI) -- Oil futures which have been gaining slowly but steadily as Tropical Storm Gustav headed for the Gulf of Mexico, reported a loss in midday readings.

Prices were down 75 cents at $117.40 a barrel on the New York Mercantile Exchange.

Traders meanwhile kept a wary eye on the gulf region where one weather research firm predicted as much as 80 percent of the gulf's oil and gas production may be shut down as a precaution.. Royal Dutch Shell was reported among the firms evacuating staff members.

Natural gas prices were up 0.06 cents to $8.67 per million British thermal units early Thursday.

Heating oil climbed 0.70 cents to $3.2637 a gallon. Reformulated gas was up 1.03 cents to $3.0775 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.

Troubled Fannie Mae shakes up leadership

NEW YORK, Aug. 28 (UPI) -- The Federal National Mortgage Association, battered by the meltdown in the U.S home loan business, has shaken up its senior management, officials said.

In an announcement in Washington Fannie Mae officials said that Daniel Mudd will remain chief executive but its chief financial officer and two other top executives are out.

They will be replaced by other Fannie Mae insiders, the Washington Post said Thursday.

The new team "will be responsible for meeting the dual objectives of conserving capital and controlling credit losses," Mudd said in a statement.

Fannie Mae and Freddie Mac are the largest source of mortgage finance across the country. Both were victims of bad bets on securities backed by home loans and badly bruised by the housing bust.

Revised GDP shows new strength

WASHINGTON, Aug. 28 (UPI) -- A revised second quarter increase of 3.3 percent in the gross domestic product was reported Thursday by the U.S. Labor Department in Washington.

That represents almost double the earlier estimated growth figure of 1.9 percent and improves greatly on the 0.9 percent in the first quarter.

Stronger exports, reduced imports, private inventory investments and increased personal consumption contributed importantly to the report, observers say.

The weaker dollar against the euro contributed importantly to improvements in the inflation-adjusted trade balance.

The Commerce Department publishes estimates for July consumer spending Friday, expected to provide a key first glimpse into third quarter growth