UPI NewsTrack Business

U.S. markets close lower Thursday

NEW YORK, Nov. 12 (UPI) -- U.S. markets ended six days of gains Thursday in New York with financial firms leading the slide.

Citigroup Inc. shares dropped 2.2 percent, while Bank of America lost 2.37 percent. Ford Motor Co. fell 1.56 percent and General Electric dropped 0.82 percent.

Markets fell despite a Labor Department report revealing initial claims for jobless benefits dropped by 12,000 to 502,000 in the week ended Nov. 7. The four-week rolling average also dropped, declining by 4,500 to 524,250.

By close, the Dow Jones industrial average lost 93.79 points, 0.91 percent, to 10,197.47. The Standard & Poor's 500 shed 11.27 points, 1.03 percent, to 1,087.24. The Nasdaq composite index dropped 17.88 points, 0.83 percent, to 2,149.02.

On the New York Stock Exchange, 626 stocks advanced and 2,398 declined on a volume of 4.1 billion shares traded.

The benchmark 10-year U.S. Treasury came off a Veterans Day bank holiday to fall 1 25/32 and yield 3.444 percent.

The euro fell to $1.4839 from Wednesday's $1.4982. Against the yen, the dollar rose to 90.37 yen from Wednesday's 89.81 yen.

In Japan, the Nikkei 225 index fell 0.68 percent, 67.19, to 9,804.49.

In Britain, the FTSE 100 index gained 0.19 percent, 9.75, to 5,276.50.

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Fed changes overdraft rules

WASHINGTON, Nov. 12 (UPI) -- The U.S. Federal Reserve has closed the option for banks to charge overdrafts fees on two common transactions unless the consumer agrees to allow the fees.

The rule changes announced by the Federal Reserve Board Thursday include overdrafts resulting from automated teller machine withdrawals and one-time debit card transactions.

Effective July 1, 2010, banks not be allowed to charge the fees unless consumers agree in advance. Consumers don't have to opt out of the fees, they have to opt in to the service, which normally includes a fee.

Consumer surveys show some appreciate the service "to cover important bills," the Fed said in a statement.

Banks will also be required to provide information, including applicable fees, if a consumer chooses to go with the service.

"The final overdraft rules represent an important step forward in consumer protection. Both new and existing account holders will be able to make informed decisions about whether to sign up for an overdraft service," said Fed Chairman Ben Bernanke.

"Our rule will help consumers better understand the terms and conditions of overdraft services and will give them an opportunity to avoid fees," said Governor Elizabeth Duke, the chair of the Federal Reserve Board's Committee on Consumer and Community Affairs.

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October budget deficit is $176.3 billion

WASHINGTON, Nov. 12 (UPI) -- The U.S. federal deficit reached $176.3 billion in October, pushing the national debt to $12 trillion, Financial Management Services said.

The deficit rose more than economists predicted, The Washington Post reported Thursday.

A year ago, the deficit in October, the first fiscal month of then year, was $155.5 billion. The current month is the largest October deficit on record, the newspaper said.

For the fiscal year, the budget deficit is projected to reach between 11 percent and 12 percent of the gross domestic product, far above the a widely recognized norm for a healthy budget deficit of under 3 percent of the GDP.

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U.S. Airways attendants set to picket

PHOENIX, Nov. 12 (UPI) -- Flight attendants from US Airways said they would form a picket line at the Phoenix Sky Harbor International Airport to protest the lack of a new contract.

The Association of Flight Attendants is concerned that flight attendants are still working under two contracts. No contract has been signed that merges American West Airlines and US Airways crews, although the two companies merged in 2005.

Some American West flight crew members receive less pay than US Airways attendants received before the merger, the Phoenix Business Journal reported Thursday.

Attendants planned to form a picket line Friday, the Journal said.

Valerie Wunder, a spokeswoman for US Airways, said this week, "we share the desire for a single contract."