U.S. markets climb Tuesday
NEW YORK, May 26 (UPI) -- U.S. markets gained ground Tuesday, as consumer confidence overcame news that U.S. home prices were continuing to fall.
The S&P Case-Schiller home-price indexes showed home prices falling in 17 of 20 U.S. cities. But the Conference Board said said the Present Situation Index rose from 25.5 to 28.9 in May, while the Expectations Index soared from 51 to 72.3.
By close, the Dow Jones industrial average gained 196.17 points, or 2.37 percent, to 8,473.49. The Standard & Poor's 500 rose 2.63 percent, 23.33 points, to 910.33. The Nasdaq composite index gained 58.42 points, 3.45 percent, to 1,750.43.
On the New York Stock Exchange, 2,531 stocks advanced and 518 declined on a volume of 4.4 billion shares traded.
The benchmark 10-year U.S. Treasury bond rose 26/32 to yield 3.547 percent.
The euro rose to $1.3985, compared to the previous mark of $1.3982. Against the Japanese yen, the dollar traded higher at 94.98, compared to 94.82.
In Tokyo, the Nikkei average lost 36.19 points to 9,310.81, off 0.39 percent.
In London, the FTSE 100 index added 46.43 points, 1.06 percent, to 4,411.72.
UAW would emerge with 17.5 percent of GM
DETROIT, May 26 (UPI) -- United Auto Workers leaders in Detroit said they tentatively approved a concessions agreement with General Motors Corp. that now goes to a ratification vote.
Plant-level leaders who unanimously supported the deal said the union trust fund would take over GM's retirement healthcare responsibilities in exchange for 17.5 percent of the restructured company and representation on the company's board of directors, The Wall Street Journal reported Tuesday.
On top of the stock valued at $6.5 billion, GM will issue the union a $2.5 billion note redeemable in installments through 2017.
The deal also includes job buyout offers -- some valued at $115,000 -- for nearly all UAW workers at GM, the Detroit Free Press reported.
Vice President of UAW Local 22 in Michigan said the deal "is about survival."
GM has until June 1 to reach concessions with creditors and the union that would extend government support for the company. Otherwise, GM will end up in bankruptcy court.
Creditors have not agreed to a deal that expires Tuesday night, offering them 10 percent of the company in exchange for $27 billion in debt. Creditors have complained that the deal gives them a smaller share than the union, the Journal said.
Union angry at bailed out bank
MOLINE, Ill., May 26 (UPI) -- Union workers in Illinois are demanding that Wells Fargo & Co. save their jobs by extending credit to a metal die cast facility until a buyer is found.
The company, Quad City Die Casting in Moline, Ill., has told workers that the plant will close July 12 at the cost of more than 100 jobs. But members of the United Electrical, Radio and Machine Workers of America, 80 of whom work at the plant, are pressing the bank to keep the plant open.
"Wells Fargo, who received $25 billion in federal bailout funds is refusing to extend … credit," the union said in a statement.
"Small businesses need credit to keep going during these tough times. Wells Fargo got bailed out with billions of dollars. We demand that the bank not sell us out," die cast technician Keith Scribner said.
"They say the banks are too big to fail, but what about us? Aren't our families too important to fail?" plant worker Deborah Johann said.
Russian firm invests in Facebook
PALO ALTO, Calif., May 26 (UPI) -- U.S. Internet giant Facebook said a Russian firm, Digital Sky Technologies, has purchased 1.96 percent of the company for $200 million.
The deal values Facebook's preferred stock at $10 billion, The New York Times reported Tuesday.
In October 2007, a similar deal with Microsoft valued Facebook's preferred stock at $15 billion, but Facebook founder and Chief Executive Officer Mark Zuckerberg called the Microsoft deal something of an anomaly.
That deal was made at the "absolute peak of the market," he said.
"Relative to the economic conditions for when the Microsoft deal happened and that being more of a strategic partnership than a straight financial investment, we feel really good about the progress we've made," Zuckerberg said in a conference call.
He said the new financing "will serve as a cash buffer to support our continued growth." Facebook, however, was not thinking of going public soon. "We'll do it when it's right for the company," Zuckerberg said.
Digital Sky Technologies has investments in Web companies that command about 70 percent of the Russian-language Internet. It also has plans to buy $100 million in additional Facebook stock from other sources, the newspaper said.
