UPI NewsTrack Business

U.S. markets finish strong Monday

NEW YORK, Nov. 16 (UPI) -- U.S. markets headed higher Monday as the Commerce Department said retail sales in October were stronger than expected.

October's retail report showed a 1.4 percent gain for the month, more than 50 percent better than the 0.9 percent gain economists predicted.

By close, the Dow Jones industrial average added 136.49 points, 1.33 percent, to 10.406.96. The Standard & Poor's 500 rose 1.45 percent, 15.82, to 1,109.30. The Nasdaq composite index added 29.97 to 2,197.85, up 1.38 percent.

On the New York Stock Exchange, 2,485 stocks advanced and 576 declined on a volume of 4.5 billion shares traded.

The benchmark 10-year U.S. Treasury bill rose 20/32 to yield 3.349 percent.

The euro rose to $1.4971 from Friday's $1.4921. Against the yen, the dollar fell to 89.09 yen from Friday's 89.67 yen.

In Tokyo, the Nikkei 225 index rose 0.21 percent, 20.87, to 9,791.18.

In London, the FTSE 100 index rose 1.63 percent, 86.29, to 5,382.67.

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Bernanke sees constrained growth ahead

NEW YORK, Nov. 16 (UPI) -- U.S. Federal Reserve Chairman Ben Bernanke said the economic recovery was on solid enough ground to continue through 2010 with modest gains in employment.

Speaking in New York at The Economic Club Monday, Bernanke said "my own view is that the recent pickup reflects more than purely temporary factors and that continued growth next year is likely."

"Significant economic challenges remain," he said. "The flow of credit remains constrained, economic activity weak, and unemployment much too high."

However, he said, promising signs include "strengthening consumer spending outside of autos, a nascent recovery in home construction, continued stabilization in financial conditions, and stronger growth abroad."

Of most immediate concern, "constrained bank lending and a weak job market likely will prevent the expansion from being as robust as we would hope," he said.

He discussed weakness in the commercial real estate market, which looks to mimic the bubble that burst in the housing market beginning in 2006.

"Demand for commercial property has dropped as the economy has weakened, leading to significant declines in property values, increased vacancy rates, and falling rents," all of which undermine the loans that support business.

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Poll: Christmas spending likely lower

PRINCETON, N.J., Nov. 16 (UPI) -- U.S. consumers indicated they were preparing for an austere 2009 Christmas shopping season, researchers at the Gallup Poll said Monday.

In a recent survey, consumers indicated they expected to spend, on average, $638 on Christmas gifts this season, just slightly higher than the $616 recorded in November a year ago.

The poll's results could be a harsh letdown for the nation's retailers. A month ago, the same poll came up with an average sum of $740 that consmers indicated they would spend this year.

A majority, 57 percent, indicated they would spend the same on gifts this year as last. Thirty-four percent indicated they would spend less this year.

The poll included interviews with 1,008 adults Nov. 5-8. The results carry a margin of error of plus or minus 4 percentage points, Gallup said.

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Workers with reduced hours could get help

WASHINGTON, Nov. 16 (UPI) -- Sen. Jack Reed, D-R.I., said passing a bill giving compensation to U.S. workers who accept fewer work hours to prevent company layoffs would save jobs.

Sixteen states currently have "work share programs" that provide unemployment benefits to workers who accept fewer hours in lieu of layoffs. The Department of Labor said these programs have saved 146,000 jobs this year.

Reed's office said as many as 500,000 jobs could be saved this year if the programs had a national sponsor.

"This plan will help prevent layoffs, make businesses more productive, and save taxpayers money by keeping people on payrolls and off unemployment benefits," Reed said in a statement.

A Republican aide in Washington said to some Republicans, the idea sounds like "tax and spend," The Hill newspaper reported Monday.

But the idea has the backing of some economists, including Mark Zandi, chief economist at Moody's Economy.com, and Paul Krugman, a New York Times columnist.

Zandi said the program would have better returns than extending unemployment benefits.

With unemployment at 10.2 percent, President Barack Obama plans to hold a job summit meeting in December.