U.S. markets advance Wednesday
NEW YORK, Sept. 9 (UPI) -- U.S. stock indexes turned higher Wednesday, despite a record drop in consumer credit in July.
The U.S. Federal Reserve said Tuesday that consumer credit dropped by $26.1 billion in July with a $6.1 billion decline in revolving debt and a $15.4 billion fall in non-revolving debt.
By close, the Dow Jones industrial average added 49.88 points, 0.53 percent, to 9,547.22. The Standard & Poor's 500 rose 0.78 percent, 7.98 points, to 1,033.37. The Nasdaq index gained 1.11 percent, 22.62 points, to 2,060.39.
On the New York Stock Exchange, 2,182 stocks advanced and 842 declined on a volume of 5.2 billion shares traded.
The benchmark 10-year Treasury rose 3/32 to yield 3.469 percent.
The euro rose to $1.4562 from Tuesday's $1.4499. Against the yen, the dollar fell to 92.05 yen from Tuesday's 92.23 yen.
In Tokyo, the Nikkei 225 index lost 0.78 percent, 81.09 points, to 10,312.14.
In London, the FTSE 100 index added 56.96 points, 1.15 percent, to 5,004.30.
Beige Book points to stabilization
WASHINGTON, Sept. 9 (UPI) -- The U.S. Federal Reserve said economic activity showed signs of continued improvement across the country in July and August.
The economic summary known as the Beige Book said the most of the Fed's 12 bank districts "remained cautiously positive," about business conditions.
Dallas reported activity had "firmed." Boston, Cleveland, Philadelphia, Richmond and San Francisco showed "improvement." Atlanta, Chicago, Kansas City, Minneapolis and New York were described as "stable or showing signs of stabilization." St. Louis "remarked that the pace of decline appeared to be moderating," the Fed said.
Most districts reported retail as "flat," but several districts noted an increase in automobile production with "cash for clunkers," a federal rebate program, providing a boost in sales.
In manufacturing, four districts reported moderate increases for new orders, the Fed said.
"Labor remained weak across all districts. However, staffing firms in Atlanta, Dallas, Richmond, Cleveland, Philadelphia, Boston, New York and Chicago did report a slight pickup in the demand for temporary workers," the Fed said.
Several districts noted a pickup in real estate markets, while construction, "remained at low levels overall," the report said.
Sun-Times rescue requires union help
CHICAGO, Sept. 9 (UPI) -- An investor group's pledge to buy Chicago's Sun-Times Media for $25 million hinges on union support and quick action, a union leader said.
The bid assembled by Mesirow Financial Chairman Jim Tyree includes dividing the Sun-Times into two companies, including a "bad" company that will absorb a $600 million tax liability.
The bid includes $5 million cash and the assumption of $20 million in other liabilities. It also includes union workers agreeing to make temporary wage concessions permanent, The Chicago Tribune reported Thursday.
The Sun-Times has collective bargaining agreements with five unions and is hemorrhaging cash, making it imperative a deal is completed soon, the newspaper said.
"There's a serious time limit," said Chicago Newspaper Guild Executive Director Tom Thibault.
The Sun-Times lost $3.8 million in July and has lost tens of millions in the past two years as advertisers and subscribers fled to the Internet.
Sun-Times Media Chairman Jeremy Halbreich said a turnaround was possible with a return to profit in the fourth quarter if more spending cuts were put into effect.
Tyree waved off naysayers.
"I think this is a very good business investment in a business that will at some time in the future be a winner," Tyree said.
Effort to save 900 Diageo jobs falls short
GLASGOW, Scotland, Sept. 9 (UPI) -- Liquor giant Diageo said a Scottish government task force has failed to find a plan that would rescue 900 jobs at two historic beverage facilities.
A company restructuring plan calls for the closure of a Johnny Walker bottling plant in Kilmarnock and a grain distillery in Glasgow, The Scotsman reported Wednesday.
The plan provoked a protest march in Kilmarnock with 20,000 people participating. Scottish Finance Secretary John Swinney presented the company with a variety of alternate proposals, including building a new plant in Kilmarnock, the newspaper said.
David Gosnell, managing director of Diageo Global Supply, called the meeting with government officials "positive" a week ago, then announced this week the proposals were not viable and the talks would discontinue.
"I appreciate their efforts but the task force has no workable alternative to deliver what Diageo needs," he said.
Swinney, in reply, said, "I do not believe that Diageo appreciate the social consequences of their financial decision in turning their backs on 200 years of history in Port Dundas and Kilmarnock."
Labor leader Iain Gray said he was "deeply disappointed that John Swinney has been unable to bring forward a plan capable of convincing Diageo to save these jobs."
