UPI NewsTrack Business

U.S. markets gains hold up Friday

NEW YORK, Nov. 6 (UPI) -- Narrow gains held up in U.S. markets Friday, despite news the unemployment rate rose to 10.2 percent.

The Labor Department said 190,000 jobs were lost in October, pushing the unemployment rate up 0.4 percentage points from the previous month's 9.8 percent.

After a 203-point gain Thursday, the Dow Jones industrial average crossed the 10,000 point mark on 10 occasions Friday, failing to sustain a run-up or settle in negative territory.

By close, the Dow Jones industrial average was ahead by 17.46 points, 0.17 percent, to 10,023.42. The Standard & Poor's 500 added 0.25 percent, 2.67 points, to 1,069.30. The Nasdaq composite index gained 0.34 percent, 7.12 points, to 2,112.44.

On the New York Stock Exchange, 1,531 stocks advanced and 1,445 declined on a volume of 4.2 billion shares traded.

The benchmark 10-year U.S. Treasury rose 8/32 to yield 3.499.

The euro fell to $1.4845 from Thursday's $1.4877. Against the yen, the dollar fell to 89.94 yen from Thursday's 90.77 yen.

In Japan, the Nikkei 225 index rose 0.74 percent, 71.91, to 9,789.35.

In London, the FTSE 100 index lost 0.33 percent, 17.08, to 5,142.72.

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GM could deploy U.S. funding overseas

DETROIT, Nov. 6 (UPI) -- General Motors Co. Chief Executive Officer Fritz Henderson said the U.S. automaker could use federal money to support its struggling European operations.

The U.S. government gave GM $50 million to help it emerge from bankruptcy this summer and support the company through the recession.

Henderson said Thursday GM was seeking $4.5 billion in help from European governments, including Germany, the Detroit Free Press reported Friday.

GM had lined up a buyer for its German and British operations over the summer, but reversed its decision to sell in a surprise move this week.

Although the buyer, Magna International Inc., had plans to cut jobs, GM's indication that it would trim its European workforce by 10,000 angered German union members and politicians.

Opel would also bear part of the restructuring costs. "Things have improved there, as far as liquidity position … that would be our principal source of doing it (restructuring)," he said.

TARP funds GM received before it went into bankruptcy could not be used to fund operations outside the United States. But funds GM picked up during its bankruptcy case were available for use overseas, the newspaper said.

"We are able to run a global business," Henderson said.

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Chrysler wins over a key executive

AUBURN HILLS, Mich., Nov. 6 (UPI) -- The head of the largest U.S. auto dealership group, Mike Jackson, said he was confident in Chrysler Group's ability to make a comeback.

Chrysler sales fell 30 percent in October compared to October 2008. This week, however, the automaker revealed its five-year plan, which Jackson, chief executive officer of AutoNation Inc. embraced, the Detroit Free Press reported Friday.

"My main concern was if you stress-test it (the five-year plan), can they get through disruptions over the next year or two? I now believe they can," Jackson said.

AutoNation will now be "on the hunt for acquisitions" of more Chrysler, Jeep and Dodge dealerships, he said.

Chrysler fell into bankruptcy this summer and emerged controlled by Fiat SpA under the leadership of CEO Sergio Marchionne.

Jackson described his first impression of the Chrysler's new CEO.

"He's got a little office, one step up from a cubicle. He comes up to me wearing a tennis shirt with a backpack slung over his shoulder. I thought to myself, 'This is going to be magic or tragic,'" Jackson said.

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200 Waldenbooks outlets to close

ANN ARBOR, Mich., Nov. 6 (UPI) -- U.S. retailer Borders Group Inc. said it would close 200 Waldenbooks outlets in a cost-cutting move that would eliminate 1,500 jobs.

"We are working toward a viable, smaller but more profitable business," Borders spokeswoman Anne Roman told The Detroit News.

Both independent and chain book stores are struggling as more and more content becomes available through digital venues, like the Internet or hand held electronic readers, like the Kindle.

After the cuts, Borders would be left with about 130 Waldenbooks outlets.

Retailers are expecting a slow holiday shopping season. Last year, Borders holiday sales for stores that had been open for more than a year fell 14.4 percent compared to 2007, the newspaper said.