UPI NewsTrack Business

U.S. markets near close of scary month

NEW YORK, Oct. 31 (UPI) -- U.S. markets were higher Friday as one of the worst months in U.S. trading history draws to a close.

With the Dow Jones industrial average up 74.31 points in late-morning trading, up 0.81 percent at 9,255, records put the index at a possibly falling more than 15 percent this month, which would make it the 11th worst month on record, The Wall Street Journal reported.

The Standard & Poor's 500 index was up 8.39 points, or 0.88 percent, to 967.48. The Nasdaq composite index rose 11.66 points, 0.69 percent, to 1,710.18.

The benchmark 10-year U.S. Treasury bond rose 16 /32 to yield 3.906 percent.

The euro fell to $1.2735, compared to $1.2923. Against the Japanese yen, the dollar rose to 98.75 yen, up from 98.43 yen.

In Tokyo, the Nikkei average lost 452.78 points to 8,576.98, off 5.01 percent.

Canadian GDP slips in August

OTTAWA, Oct. 31 (UPI) -- Canada's gross domestic product declined 0.3 percent in August, led largely by decreases in the energy sector, Statistics Canada reported Friday.

Output of the energy sector decreased 0.5 percent in August including a 4.5 percent decline in refinery output, while wholesale trade also dropped 3.1 percent during the month.

The manufacturing sector fell 1.1 percent in August with 18 of the 21 major groups declining. Construction also declined 0.3 percent in August, StatsCan said.

The finance/insurance sector was unchangedt, as was retail trade, although there were substantial sales declines at gasoline stations and new car dealers, the report said.

The accommodation and food services sector saw a 0.8 percent increase, attributed partly to the influx of tourists to Quebec City for its 400th anniversary celebrations, the report said.

Canada's GDP for July was up 0.7 percent on a month-to-month basis.

AIG taps new commercial paper program

NEW YORK, Oct. 31 (UPI) -- U.S. insurer American International Group said its would tap into a third federal bailout option, bringing its total line of government credit to $144 billion.

The company said it had been granted access to $20.9 billion in the U.S. Federal Reserve commercial paper program, which allowed it to reduce its dependence on more expensive credit offered in the original $85 billion bailout offered in September, The New York Times reported Friday.

Company spokesman Joe Norton said AIG had tapped about $72 billion of the original loan, but had currently reduced that amount to $65.5 billion, the Times said.

AIG's cash needs could escalate, the Times said. But, many of the company's faltering derivatives contracts are tied to real estate. If the real estate market improves, the company's position could also improve.

To date, bailout help has cost the insurer about $331 million in fees and interest payments, Norton said.

Ford to recall some workers, talks tough

DEARBORN, Mich., Oct. 31 (UPI) -- Ford Motor Co. officials are talking tough and ready to call back some laid-off workers, the company said at a product launching ceremony.

Kicking off production of the newest F-150 pickup truck Thursday, Ford officials said they would call in 1,000 furloughed workers, the New York Times reported.

The company is gearing up to replace 40 percent of its production line up with new models next year, the Times said. At the launching party Thursday, where workers cheered the news some laid off workers would return to work, Ford officials sounded confident they could bully through the bad times, the Times reported.

"I don't know what they're going to be spending their time on if they're merging," Ford's vice president for sales and communications James Farley said of General Motors Corp. and Chrysler LLC, where merger talks continue.

"But I know we're spending our time on launching products," Farley said.