U.S. markets slide Tuesday
NEW YORK, Oct. 20 (UPI) -- U.S. markets closed lower Tuesday after the Commerce Department said housing starts in September rose, but less than had been expected.
Housing starts climbed 0.5 percent to a seasonally adjusted annual rate of 590,000. Economists, however, had expected housing starts in the range of 620,000 on an annual basis.
By close, the Dow Jones industrial average dropped 50.71 points or 0.5 percent to 10,041.48. The Standard & Poor's 500 lost 6.85 or 0.62 percent to 1,091.06. The Nasdaq index dropped 12.85 or 0.59 percent to 2,163.47.
On the New York Stock Exchange, 1,051 stocks advanced and 1,996 declined on a volume of 5.3 billion shares traded.
The benchmark 10-year Treasury rose 12/32 to yield 3.343 percent.
The euro fell to $1.4935 from Monday's $1.4943. Against the yen, the dollar rose to 90.68 from Monday's 90.60.
In Japan, the Nikkei 225 index gained 0.98 percent, 100.33 to 10,336.84.
In Britain, the FTSE 100 index dropped 38.14, 0.72 percent, to 5,243.40.
EU to consider aid to its dairy sector
BRUSSELS, Oct. 20 (UPI) -- The European Commission has proposed an emergency bill to support dairy farmers who say the price they receive for milk has fallen below production costs.
The proposed $418 million fund, however, would provide scant help for individual farmers, the European Union's agriculture commissioner said.
The fund would only provide dairy farmers in the 27 member EU states with about $1,500 each, agricultural commissioner Mariann Fischer Boel said.
In addition, Boel warned the measure, which requires approval by EU Finance ministers, would deplete emergency funds at her disposal, the EUobserver reported Tuesday.
Boel said market conditions had shown some improvement, but acknowledged farmers receive price increases after food producers.
Dairy farmers in Europe have held a series of public protests, including blocking traffic with tractors and cattle.
In France, however, wheat farmers set fire to tires in Paris last week, provoking a concern that other farmers would requests for emergency aid.
The dairy measure is not a done deal. France has led the initiative to provide dairy farmers with relief, but Britain and the Netherlands oppose the plan.
Galleon Group reassures investors
NEW YORK, Oct. 20 (UPI) -- Galleon Group Tuesday reassured clients the New York firm was solvent despite its founder's arrest on insider trading charges.
Raj Rajaratnam and five others were arrested for making illegal trades on companies like Google, Akamai and Hilton over nearly three years, The New York Times reported.
The firm, which manages $3.7 billion in assets, was "highly liquid," a company spokesman said, although a lawyer representing Galleon investors said it was likely there would be a quick rush of clients withdrawing their money from the firm.
"Once a few big investors head for the exits, it doesn't take long for the flood gates to open," the attorney said.
Some clients found restrictions on withdrawals, including providing 45 days of notice. Nevertheless, the Times reported investors have requested about $1 billion of withdrawals since Friday's arrests.
Galleon said Rajaratnam was not barred from leading the company and would continue to work while mounting a defense.
Retirement years look poor for millions
WASHINGTON, Oct. 20 (UPI) -- Nearly a third of U.S. households have wage earners headed toward retirement years with no savings, private researchers McKinsey & Co. said.
The consulting firm's findings are compatible with a report by Ernst & Young that says only 4 percent of middle-income married couples with no pensions are approaching retirement with enough funds tucked away to finance their retirement years, USA Today reported Tuesday.
Retirement USA, a coalition of national organizations, is seeking solutions to the national problem of having millions of U.S. citizens reach retirement without financial security.
For some, the solution includes finding additional support for 401(K) retirement plans, despite the stock market meltdown of the past year that reduced the values of millions of retirement portfolios.
"We're not under an illusion that this will happen overnight," said Karen Friedman, policy director of the Pension Rights Center, referring to a national effort to find a solution to the "retirement crisis," the newspaper said.
"I feel we're watching a slow-motion train wreck. It's pretty clear that with the current trend, the country's Baby Boomers and the next generation will not have enough money to retire," said Steve Bartlett, president of the Financial Services Roundtable, a lobbying group in Washington.
