UPI NewsTrack Business

U.S. markets edge up as Fed meets

NEW YORK, Nov. 4 (UPI) -- U.S. markets headed higher Wednesday in advance of a critical Federal Reserve policy decision to be announced in the afternoon.

The Fed's Open Market Committee will announce policy decisions after a two-day meeting. Investors are typically cautious before an announcement, this one coming with lending rates at historic lows and a tentative recovery underway.

In late morning trading, the Dow Jones industrial average added 123.64 points, 1.27 percent, to 9,895.55. The Standard & Poor's 500 gained 1.08 percent, 11.24 points, to 1,056.66. The Nasdaq composite rose 0.88 percent, 18.12, to 2,075.44.

The benchmark 10-year U.S. Treasury fell 9/32 to yield 3.503 percent.

The euro rose to $1.4812 from Tuesday's $1.4712. Against the yen, the dollar rose to 90.75 yen from Tuesday's 90.34 yen.

In Japan, the Nikkei 225 index added 22.66, 0.42 percent, to 9,844.31.

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Philadelphia transit strike angers public

PHILADELPHIA, Nov. 4 (UPI) -- Commuter chaos reigned in Philadelphia Wednesday, where a transit strike entered its second day.

The Southeastern Pennsylvania Transit Authority walkout that began Tuesday was expected to fray nerves further as public school students who had a day off on Election Day returned to class.

Street traffic already jammed by extra cars was even more congested, The Philadelphia Inquirer reported.

"The real test is (this) morning, when schools are in full session," said MaryAnn Tierney, Philadelphia's director of emergency management.

Mayor Michael Nutter said the transit strike had "ambushed" the city. "This is unfair to the citizens," he said.

The city assigned shuttles to remote parking lots to take municipal workers to their jobs, relaxed some parking restrictions and allowed some to change their work schedules. Road construction was halted during daytime hours.

Tempers rose, the newspaper said. "Everybody is in a recession. Everybody wants a raise. You just can't stop working. Everybody lost in this game," said commuter Nicketta Burden.

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HUD study raises questions on stimulus

WASHINGTON, Nov. 4 (UPI) -- Auditors in a limited study of stimulus spending found a majority of U.S. Department of Housing and Urban Development grants went to questionable agencies.

In a survey of at least 22 programs in 15 states and Puerto Rico, auditors said only six were likely to handle the stimulus funding they received effectively, USA Today reported Wednesday.

The programs found to be problematic were scheduled to receive $220 million in stimulus finds, the newspaper said.

In response, HUD spokeswoman Andrea Mead said the department was monitoring the situation and keeping a close watch on the most troubling agencies.

"There are so many requirements for keeping track of this money that the majority of problems are going to be caught and addressed," Mead said.

Rep. Maxine Waters, D-Calif., who chairs a housing subcommittee, said the department would "take immediate steps to improve oversight."

Altoona, Pa., City Manager Joe Weakland said the report came out of left field.

"We looked at it, and we didn't know what they were talking about," he said.

But Leslie Page, a spokeswoman for Citizens Against Government Waste, said funds should be withheld from agencies "with a history of mismanagement."

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Kraft remains focused on Cadbury

NORTHFIELD, Ill., Nov. 4 (UPI) -- U.S. food giant Kraft said it would continue to pursue Cadbury, and called for a "disciplined approach" in its quest for the chocolate maker.

"We remain interested, but will maintain a disciplined approach," Kraft Chairman and Chief Executive Officer Irene Rosenfeld said.

The Times of London said Wednesday Kraft had assembled $9 billion in financing from nine banks, including one from the United States (Citigroup), one from Germany (Deutsche Bank) and one from Britain (Barclays).

Cadbury turned down Kraft's first offer, made in September, calling the $16.7 billion bid an "unappealing prospect."

"There has been a lot of speculation about what we can afford. What we can afford is not relevant. What is relevant is what Cadbury is worth," Rosenfeld said during a conference call Tuesday night.