U.S. markets tumble
NEW YORK, Nov. 19 (UPI) -- U.S. stock indexes tumbled Wednesday as the U.S. Department of Labor said the consumer price index fell 1 percent in October.
The largest drop in the inflation rate in 61 years indicated the U.S. economy had slowed dramatically. Housing starts were also down, off 4.5 percent in October compared with September.
Among active stocks, Citigroup Inc. shares fell close to 23 percent, General Electric Co. was down 8.72 percent, while Bank of American Corp. slid 8.72 percent.
By close, the Dow Jones industrial average was off 427.47 points, or 5.07 percent, to 7,997.28. The Standard and Poor's 500 fell 6.12 percent, 52.54 points, to 806.58. The Nasdaq composite index lost 96.85 points, 6.53 percent, to 1,386.42.
On the New York Stock Exchange, 187 stocks advanced and 2,998 declined on a volume of 7.2 billion shares traded.
The 10-year U.S. Treasury bond rose 1 12/32 to yield 3.364 percent.
The euro fell to $1.252, compared to $1.2617 Tuesday. Against the Japanese yen, the dollar fell to 95.90, from 96.81 yen Tuesday.
In Tokyo, the Nikkei average fell 55.19 points to 8,273.22, down 0.66 percent.
The FTSE 100 index in London fell 202.87 points to 4,005.68, off 4.82 percent.
Luxury jets flew pleading execs to Capitol
DETROIT, Nov. 19 (UPI) -- Private jets ferrying U.S. auto executives to Washington to ask for a federal bailout were a "slap in the face" to taxpayers, a watchdog group's president said.
"To come to Washington on a corporate jet, and asking for a hand out is outrageous," said Tom Schatz, President of Citizens Against Government Waste, ABC News reported Wednesday.
"This is a slap in the face of taxpayers," he said.
Rick Wagoner, chief Executive officer of General Motors Corp., used one of the company's eight luxury jets, a $36 million aircraft, to travel to a hearing in Washington Tuesday. At the hearing, Wagoner told the Senate Banking Committee GM could run out of cash by the end of the year.
With cash reserves dwindling, Wagoner said the automaker needed about $12 billion from the government. "We can't do it alone," Wagoner said.
Ford also maintains a fleet of eight private jets, one of which ferried Chief Executive Officer Alan Mulally to Washington for Tuesday's hearing. Corporate aircraft also took care of Chrysler CEO Robert Nardelli's commute to Washington.
"Now's not the time to do that sort of thing," said John McElroy, a commentator for "Autoline Detroit."
Massachusetts tops state economic ranking
WASHINGTON, Nov. 19 (UPI) -- The Information Technology & Innovation Foundation Wednesday said Massachusetts was the state most prepared to meet the demands of the modern economy.
Massachusetts has stayed at the top spot since 2002 on the State New Economy Index, the firm said. This year it was followed by Washington, which was ranked fourth in 2007.
Maryland, ranked 11th in 1999, moved up to the third spot. Following Maryland in the top 10, in order of ranking, were Delaware, New Jersey, Connecticut, Virginia, California, New York and Colorado.
Mississippi came in last with an index reading of 29.9. In comparison, Massachusetts earned an index reading of 97.
The index, in a report sponsored by the Ewing Marion Kauffman Foundation, weighs a variety of economic conditions, including innovation, entrepreneurial environment and readiness to take advantage of global markets.
Sun-Times Media to return to private hands
CHICAGO, Nov. 19 (UPI) -- Chicago's Sun-Times Media Group Inc. said it would stop public trading of its shares, which on Tuesday valued the publishing concern at $6.6 million.
Shares were trading at 8 cents on Tuesday, the Chicago Tribune reported.
The New York Stock Exchange "delisted" the company in May. By filing with the Securities and Exchange Commission, the company can "de-register" as a public company if its stock is owned by fewer than 300 people, the Tribune said.
The Sun-Times said it expected shares to stop trading in the first quarter of 2009.
The company also said nearly wholesale departures were expected among its leadership team.
Sun-Times Media Group Inc. Chairman Raymond Seitz and directors Gordon Paris and Graham Savage plan to resign at the end of the year. Chief Financial Officer William Barker III is departing "for another opportunity," the company said. Current vice president David Martin will take over as the chief financial officer.
