UPI NewsTrack Business

U.S. markets down on labor news

NEW YORK, Sept. 5 (UPI) -- U.S. stock indexes tilted down Friday as the government said unemployment jumped to 6.1 percent in August.

The number of unemployed has reached 9.4 million on a loss of 84,000 non-farm jobs in August, the U.S. Department of Labor reported.

The unemployment rate hasn't been this high since September 2003 but the steeply accelerated rate of job losses is also a concern. The rate was less than 5 percent in February.

The Dow Jones industrial average, which lost 344 points Thursday, was down 81.17 points Friday, off 0.73 percent, to 11,107.06. The Standard and Poor's 500 fell 10.27 points, or 0.83 percent, to 1,226.56. The Nasdaq composite index was off 14.23 points, or 0.63 percent, to 2,244.81.

The euro fell to $1.4298 from Thursday's $1.4322, while the dollar traded at 106.45 yen, down from Thursday's 107.09 yen.

The 10-year Treasury note was up 12/32, yielding 3.578 percent.

In Tokyo, the Nikkei 225 closed down 345.43 points, or 2.75 percent, at 12,212.23.

Altria Group closes in on UST purchase

NEW YORK, Sept. 5 (UPI) -- A major U.S. tobacco company, Altria Group, is closing in on a deal to purchase UST, makers of Skoal and Copenhagen smokeless tobacco products, sources said.

The companies would not comment on the deal, The New York Times reported Friday, but sources said the purchase price for UST would be more than $10 billion.

With the rumors of a purchase afloat, UST Chief Executive Officer Murray Kessler's withdrawal from an analysts' conference Thursday caused a quick jump in UST share values, the Times said. When the company said Kessler had been caught in a scheduling conflict, share prices dropped, the Times reported.

UST also owns Ste. Michelle Wine Estates, one of the 10 largest wine producers in the United States.

Altria's purchase would be "very logical," Christopher Growe, an analyst at Stifel Nicolaus told the Times.

While cigarette sales are in decline, the smokeless tobacco business has grown by 7 percent annually in the past four years, Growe said.

In March, Philip Morris USA split to form Philip Morris International and Altria in part to shield its international business from U.S. legislation and lawsuits, the Times reported.

Storm area travelers must keep close watch

NEW YORK, Sept. 5 (UPI) -- Travelers planning a fall vacation in the Caribbean and the Southern United States have to keep a weather eye out for storms, travel experts say.

It's hurricane season and will be until November and experts in the travel business caution anyone heading into a tropical country to keep up on weather maps and cancellation clauses in fine print, USA Today said.

Resorts have various ways to make up for weather-interrupted vacations.

Walt Disney World resorts permit rescheduling or cancellation of packages without penalty though Nov. 30 if the National Hurricane Center issues a warning for the Orlando area. Same goes if a hurricane warning is issued for a guest's home area within a week of arrival.

If SuperClubs guests can't arrive because of a hurricane, they can reschedule or come for fewer nights and get a future stay equal to nights missed. Should a hurricane strike, guests are repaid for disrupted nights and get that number free on a future stay.

Priceline has a "Sunshine Guaranteed" policy for certain fall packages bought by Sept. 12. The dozen Caribbean Sandals Resorts and four Beaches Resorts require special insurance.

Some resorts, including Eden Rock on St. Barts and Hermitage Bay on Antigua, are closed this month.

Accounting change could pressure taxes

WASHINGTON, Sept. 5 (UPI) -- An accounting change by U.S. actuaries could dramatically increase contributions needed to cover the cost of public employees' pension funds, analysts said.

The American Academy of Actuaries is considering new standards that would require local governments to provide two estimates of returns on investments made on behalf of public employee pension funds, The Washington Post reported Friday.

Most municipalities estimate returns on investments at 8 percent, about twice the amount federal regulations permit for private firms, the Post reported.

But, the estimate may be too high. The number of public pension budgets considered underfunded jumped fivefold to 40 percent in 2006, compared with 2000, the Government Accountability Office reported.

Vallejo, Calif., near San Francisco, declared bankruptcy in May due to salary and pension fund obligations.

Pension fund managers are unhappy with the change. "I'm not sure why you should confuse things by even implying that you should be using a different system than the one you are using," said Maryland Treasurer Nancy Kopp.

"We are trying to be as straightforward and transparent as we can, and we also are trying to have a diversified portfolio to ensure we will be well funded," she said.