UPI NewsTrack Business

Published: Jan. 5, 2009 at 5:49 PM

NEW YORK, Jan. 5 (UPI) -- U.S. stock indexes closed lower Monday after automakers reported sales in December were down in the range of 30 percent.

General Motors Corp. said sales fell 31 percent from a year ago, while Ford Motor Co. smaller car sales dropped 32 percent, The Wall Street Journal reported.

By close, the Dow Jones industrial average fell 81.80 points, or 0.91 percent, to 8,952.89. The Standard & Poor's 500 fell 0.47 percent, 4.35 points, to 927.45. The Nasdaq composite index lost 4.18 points to 1,628.03, off 0.26 percent.

On the New York Stock Exchange, 2,086 stocks advanced and 1,003 declined on a volume of 4.3 billion shares traded.

The benchmark 10-year U.S. Treasury bond fell 1 1/32 to yield 2.474 percent.

The euro rose to $1.3617, compared to Friday's $1.3574. Against the Japanese yen, the dollar rose to 93.36 yen, up from Friday's 93.32 yen.

In Tokyo, the Nikkei average gained 183.56 points to 9,043.12, up 2.07 percent.

In London, the FTSE 100 index gained 0.39 percent, 17.85 points, to 4,579.64.


U.S. auto sales plunged in December

DETROIT, Jan. 5 (UPI) -- U.S. auto companies reported plunging auto sales in December with Detroit's Big Three claiming sales at least 30 percent below December 2007.

Sales at General Motors Corp. fell 31 percent with 220,030 new vehicles sold in the month, The Wall Street Journal reported Monday.

Sales were down 53 percent at Chrysler LLC.

Chrysler and GM negotiated federal loans totaling $17.4 billion during the month, and have plans to downsize dramatically to return to profitability.

Sales at Ford Motor Co., which did not accept a government loan, fell 32 percent on 138,325 vehicles sold, while U.S. Toyota Motor Co. sales fell 37 percent.

Ford's head of marketing Jim Farley found a silver lining in the numbers, noting the company moved up in market share for the third straight month.

"This is a strong ending to ... a very challenging year," he said.


Japanese stocks in seldom-seen upswing

TOKYO, Jan. 5 (UPI) -- A broad range of stock gains pushed Japan's Nikkei 225 index above 9,000 for the first time in nearly two months Monday.

The first trading day of the year in Japan concluded with a 2.07 percent rise in the index, which advanced for the fifth consecutive trading day, closing at 9,043.12.

The five-day advance was the first streak of that duration since last April, Kyodo News reported.

Gains were widespread with automakers gaining as the U.S. dollar regained strength, which means Japanese exports will be cheaper.

Iron and steel rose along with crude oil prices, which were elevated in New York with a production cut from petroleum exporting countries kicking in at the first of the year.

Brokers also said they were optimistic that U.S. President-elect Barack Obama would pass a economic stimulus bill, which would increase purchasing power in the critical U.S. marketplace.


California avocados looking at lean year

SAN DIEGO, Jan. 5 (UPI) -- California avocado farmers expect the 2009 crop to be the smallest since a freeze decimated 1990's fruit, a growers' association said.

"We've had some really big blows," said Wayne Brydon, field service manager of the California Avocado Commission, the San Diego Union-Tribune reported Monday.

San Diego County wildfires in 2007, water restrictions that took effect in 2008 and an early heat wave last spring have combined to drop the crop estimate to 210 million pounds, close to the 1990 yield of 207 million pounds, the commission reported.

Consumers may not see much difference in price and Chile is the source of most avocados during the Super Bowl, the report said. But, California growers are expected to see earnings drop to $220.5 million, down from $327 million a year ago.

Farmers said the heat wave was the biggest blow to this year's crop.

Fallbrook, Calif., avocado grower Charley Wolk said the heat knocked the flowers off trees before they could set fruit.

"In May, I couldn't find any fruit on my trees," he said. "My neck hurt from walking up and down the groves looking for fruit."

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