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U.S. markets plunge Thursday

NEW YORK, July 2 (UPI) -- U.S. markets plunged Thursday after the Department of Labor said the unemployment rate rose from 9.4 percent to 9.5 percent in June.

Economists had predicted a sharper increase, but 467,000 jobs lost in the month undermined confidence in a recovery.

By close, the Dow Jones industrial average lost 223.32 points, or 2.63 percent, to 8,280.74. The Standard & Poor's 500 dropped 2.91 percent, 26.91 points, to 896.42. The Nasdaq composite index shed 49.20 points, 2.67 percent, to 1,796.52.

On the New York Stock Exchange, 652 stocks advanced and 2,404 declined on a volume of 4.1 billion shares traded.

The benchmark 10-year U.S. Treasury bond rose 14/32 to yield 3.497 percent.

The euro fell to $1.3998, compared to Wednesday's $1.4142. Against the Japanese yen, the dollar rose to 95.93 yen, compared to Wednesday's 96.64 yen.

In Tokyo, the Nikkei average lost 63.78 points to 9,876.15, off 0.64 percent.

In London, the FTSE 100 index dropped 2.11 percent, 63.78 points, to 9,876.15.

Merrill Lynch senses an upturn

NEW YORK, July 2 (UPI) -- The head of New York investment firm Merrill Lynch's global wealth management said the company is ready to break out of the doldrums.

Bank of America Chief Executive Officer Ken Lewis called the division the "crown jewel" in the acquisition of Merrill Lynch in January, the Charlotte, N.C., Observer reported Thursday.

Rising losses at Merrill Lynch prompted a $20 billion U.S. government bailout after the deal was made. Lewis has said he considered backing away from the deal, but was pressured to see it through by U.S. regulators.

At the global wealth management unit, "people are really starting to move forward here," said Dan Sontag, the division's leader.

"I see my group not wanting to talk about the rear view mirror as much," he said, referring to the controversial deal.

More than 2,000 brokers lost their jobs after the merger, but Sontag said the division is hiring trainees and clients are exploring new investment opportunities.

Tribune and Morning News reach ad deal

DALLAS, July 2 (UPI) -- The Dallas Morning News said it had reached a deal for Tribune Co. of Chicago to handle its national news ad sales.

The deal allows Tribune Co. to offer national advertisers a new audience in addition to the Chicago Tribune, the Los Angeles Times, the Baltimore Sun and other newspapers. It also increases the revenue stream and allows the Morning News sales staff to focus on local advertising, Advertising Age reported Thursday.

"This is an important step toward a more-efficient and better-equipped sales force for our company," said Morning News Senior Vice President of Sales Cyndy Carr in a statement.

"Our sales team in Dallas will now be able to remain laser-focused on serving locally based advertisers while assisting Tribune 365 to best serve our national advertisers," Carr said.

Don Meek, president of Tribune 365, the division that handles national ad sales, said the Tribune Co. is discussing similar arrangements with other publishers.

As advertising revenues have dropped at newspapers around the country, "we need to make papers easier to buy and more user-friendly," Meek said.

Beazer to pay $50M for mortgage fraud

CHARLOTTE, N.C., July 2 (UPI) -- U.S. home builder Beazer Homes USA agreed to pay $50 million to settle various mortgage fraud abuse charges, court records show.

The company accepted the settlement with a document stating it "accepts and acknowledges that it is responsible for the criminal acts of its former employees," The Charlotte ( N.C.) Observer reported Thursday.

Investigators filed charges in U.S. District Court in Charlotte Wednesday.

The various mortgage abuses included lending agents overlooking a home buyer's gross income, but asking, instead, if the home buyer made enough to cover the mortgage. Others offered to cover the down payment for low-income home buyers.

Agents then raised the price of the home to offset the cost of the so-called "gift," the newspaper said.