UPI NewsTrack Business

U.S. markets stagger at the start

NEW YORK, June 11 (UPI) -- U.S. markets staggered at the start Friday morning in New York, a strong rally in the previous session colliding with May's retail report.

Retail sales fell 1.2 percent in May compared to April, while sales excluding automobiles dropped 1.1 percent in the month, the Commerce Department said.

In late morning trading, the Dow Jones industrial average lost 45.95 points or 0.45 percent to 10,126.58. The Standard & Poor's 500 shed 5.43 or 0.5 percent to 1,081.41. The Nasdaq composite index lost 2.31 or 0.1 percent to 2,216.40.

The benchmark 10-year Treasury note rose 13/32 to yield 3.24 percent.

The euro fell to $1.2056 from Thursday's $1.2141. Against the yen, the dollar rose to 91.621 yen from Thursday's 91.31 yen.

In Japan, the Nikkei 225 index rose 1.7 percent, 162.60, to 9,705.25.

BP to suspend dividend payments

LONDON, June 11 (UPI) -- British petroleum giant BP is placing $2.4 billion in an escrow account to cover liabilities in the Gulf of Mexico, sources told The Times of London.

The funds would come from a suspension of second-quarter dividend payments, which would continue until the company can get a clear assessment on the costs of the Deepwater Horizon oil spill in the gulf, which began April 20 with a deadly oil rig explosion and has become the largest oil spill disaster in U.S. history.

"We are considering all options on the dividend. But no decision has been made," Chief Executive Officer Tony Hayward said.

However, sources said the company plans to announce a suspension of second-quarter dividends July 27 and further dividend suspensions are possible.

For Britain, the impact of BP's plan would be an enormous blow to pension funds. One of every six dividend dollars paid to pension funds in Britain, about $10.2 billion a year, comes from BP profits, the newspaper said.

In part, the plan is meant to convince the public BP has the resources to deal with disaster. Wary investors have fled BP. Its share values have dropped to 14-year lows.

Since April, BP has lost more than a third of its market value, The Times said.

FBI to probe AT&T security breach

WASHINGTON, June 11 (UPI) -- The FBI said it is probing a breach of U.S. telecommunications giant AT&T's wireless network that exposed iPad users' e-mail addresses and network ID numbers.

FBI spokesman Paul Bresson said Thursday the agency was aware of "possible computer intrusions" and investing the matter, The Washington Post reported Friday.

Many high-profile government officials are iPad 3G users and may be among the affected customers, the Gawker Web site said. Gawker reported the incident Wednesday and obtained a list of 114,000 users whose e-mail addresses were accessed by the hacking group known as Goatse Security, the Post said.

AT&T holds an exclusive contract for Apple's iPhone and tablet computer iPad. The company said Wednesday it closed the security hole and would notify affected users.

The intrusion highlights the need for better Internet privacy and security protections, regulators told the Post.

"I am concerned about the report of a security breach to AT&T's network that exposed the personal data of more than a hundred thousand iPad users," said Jamie Barnett, chief of the Federal Communications Commission's public safety bureau. "The FCC's cyber security mission is to ensure that broadband networks are safe and secure for the consumers and businesses that depend on them. The FCC will continue to work with all stakeholders to prevent future security breaches that violate consumer privacy and undermine trust in America's communications infrastructure."

Spirit cancels flights ahead of strike

MIRAMAR, Fla., June 11 (UPI) -- Spirit Airlines in Florida said it had re-routed some passengers and canceled flights in advance of a pilot strike that was set to begin midnight Friday.

Airline spokeswoman Misty Pinson said Spirit had "pre-canceled some flights and is proactively contacting customers of these affected flights in advance," The South Florida Sun-Sentinel reported.

In anticipation of the strike, some pilots were expected to call in sick, the newspaper said.

Air Line Pilots Association leader Capt. Sean Creed said the union was pressing to push wages and benefits in line with competitors.

The airline handles about 20 percent of the passenger traffic at Fort Lauderdale, Fla., where it has 150 daily flights scheduled. The few flights already canceled included flights to the Caribbean and Central America.

Passenger Ed Dean of Naples, Fla., said it took five hours to resolve his travel plans after his flight was canceled. "I think if there's a strike, this airline is going to be in big trouble," he said.