U.S. markets flat Wednesday
NEW YORK, June 16 (UPI) -- U.S. markets were flat Wednesday after an up and down series of economic reports.
The Commerce Department said housing starts in May fell 10 percent compared to April.
Along with the sharp drop in housing starts, permits issued in May dropped 5.9 percent compared to the previous month, indicating housing starts will be slow for the summer construction season.
But the Federal Reserve said industrial production rose faster than expected in the month and producer prices dropped 0.3 percent in May as high unemployment is keeping inflation at bay.
By close, the Dow Jones industrial average was up just 4.69 points or 0.05 percent at 10,409.46. The Standard & Poor's 500 index lost 0.62 or 0.06 percent to 1,114.61. The Nasdaq composite index added 0.05 points, less than 0.01 percent, to 2,305.93.
On the New York Stock Exchange, 1,245 shares advanced and 1,796 declined on a volume of 5 billion shares traded.
The benchmark 10-year U.S. Treasury note rose 12/32 to yield 3.264 percent.
The euro fell to $1.2309 from Tuesday's $1.2347. Against the yen, the dollar rose to 91.452 yen from Tuesday's 91.38 yen.
In Japan, the Nikkei 225 index rose 1.81 percent, 179.26, to 10,067.15.
In Britain, the FTSE 100 index rose 0.39 percent, 20.10, to 5,237.92.
UAW elects King to replace Gettlefinger
DETROIT, June 16 (UPI) -- The United Auto Workers Union in Detroit Wednesday overwhelmingly elected Vice President Bob King to replace outgoing president Ron Gettlefinger.
The tally was 2,115 votes for King and 74 for Gary Walkowicz, a Local 600 negotiating team member, who ran to make a statement for a tougher stand on concessions with automakers.
At the podium in the Cobo Convention Center, Walkowicz said, "We need to do a radical 180-degree turn, away from policies of concessions."
Although his speech was met with boos and calls for him to withdraw from the race, Gettlefinger yelled "Democracy in action!" while endorsing King's candidacy, The Detroit News reported.
At 63 years of age, King can only serve for one term, as the union has a 65-and-out retirement policy, the News said.
After 44 years as a UAW member, the final eight as its president, Gettlefinger was sent off with a standing ovation and a plaque commemorating his service to the union.
Fannie Mae, Freddie Mac, ordered to delist
WASHINGTON, June 16 (UPI) -- The Federal National Mortgage Association Wednesday notified New York and Chicago stock exchanges of its intention to delist its stock due to low prices.
Fannie Mae said it had filed notification with the Securities and Exchange Commission of its intention to delist common and preferred stock, a move prompted by the New York Stock Exchange, which informed Fannie Mae on June 15 that it no longer met minimum standards on prices to maintain a presence on the exchange.
The Federal Home Loan Mortgage Corp., Freddie Mac, was also ordered off of stock listings, CNNMoney.com reported.
Shares of both mortgage giants fell with the news. Fannie Mae was listed at 56 cents per share in midday trading, down 0.37 percent from the opening price of 91 cents at the opening bell. Freddie Mac shares fell 40 percent to 72 cents.
Both companies were put into government conservatorship in September 2008 after massive losses due to the subprime mortgage meltdown.
The Treasury Department has kept Fannie Mae afloat with $83.6 billion in bailout funds, while Freddie Mac has received $61.3 billion.
In its most recent estimate, the Congressional Budget Office said $400 billion will be needed to keep the companies going.
Rep. Kucinich skeptical of airline merger
WASHINGTON, June 16 (UPI) -- Rep. Dennis Kucinich, D-Ohio, said he is skeptical of the sincerity of Continental Airlines' in its arguments for a merger with United Airlines.
In a letter to Continental's Chairman Jeffery Smisek, Kucinich said, "Continental's apparent willingness to make whatever representations are necessary to elected officials and regulators to garner support for its plans casts doubt on both Continent's stated motivations … and its intended post-merger conduct," the Cleveland Plain Dealer reported Wednesday.
Concerned about the possibility of job losses and increased fares, Kucinich questioned the need for a merger, given Continental's statements that it would remain profitable with the Department of Transportation's approval to share marketing costs and coordinate flight schedules with other airlines.
"It is quite possible that any efficiency gains that are trumpeted as a result of the merger … may have already been or will soon be realized," through partnerships with others, the letter said.
Kucinich and Smisek are both scheduled to testify at a House Transportation Aviation Subcommittee review of the merger, the newspaper said.
