UPI NewsTrack Business

U.S. markets close higher

NEW YORK, Feb. 9 (UPI) -- U.S. markets held on to slight gains Thursday, as investors contemplated lower jobless claims, stable interest rates in Europe and worrisome Greek debt.

Weekly first-time jobless claim figures came in better than expected with 15,000 fewer claims filed than the previous week, the Labor Department said.

In Germany, the European Central Bank said it would keep its key lending rate at 1 percent. Also in Europe, negotiations on Greece qualifying for continued international aid moved to Brussels from Athens, where political leaders reached agreement on an austerity budget.

By close of trading on Wall Street, the Dow Jones industrial average added 6.51 points or 0.05 percent to 12,890.46. The Standard & Poor's 500 index gained 1.99 points or 0.15 percent to 1,351.95. The Nasdaq composite index rose 11.37 points or 0.39 percent to 2,927.23.

On the New York Stock Exchange, 1,532 stocks advanced and 1,513 declined on a volume of 3.9 billion shares traded.

The benchmark 10-year treasury note fell 1/32 to yield 2.042 percent.

The euro rose to $1.3285 from Wednesday's $1.3261. Against the yen, the dollar rose to 77.64 yen from Wednesday's 77.04 yen.

In Tokyo, the Nikkei 225 index dropped 0.15 percent, 13.35, to 9,002.24.

In London, the FTSE 100 index gained 0.33 percent, 19.54, to 5,895.47.

Greek deals scrutinized in Brussels

ATHENS, Greece, Feb. 9 (UPI) -- Greek leaders brought their hard-wrought financial deals to Brussels Thursday to match their plan against the expectations of the international community.

Eurozone finance ministers were to review deals that include cutting the country's debt burden by $132.6 billion. Also to be discussed was an agreement to cut $3.9 billion in government spending, reduce pension benefits and drop the minimum wage by 22 percent.

Talks in Athens that yielded the deals went through the night, The Wall Street Journal reported.

In Brussels, Greece is seeking a $170 billion bailout, which was offered with major budgeting stipulations. Greece needs the bailout package to avoid defaulting on a $19 billion bond repayment it otherwise can't pay March 20.

"We want to see real implementation of the measures needed by the Greek government and also full commitment of all leaders in Greece for future measures," Dutch Finance Minister Jan Kees de Jager said.

While the deals are scrutinized in Brussels, in Greece, the political fallout is not completely known, although protests and strikes have become about as routine as the budget cuts themselves.

A general election is expected as soon as April and politicians say they do not wish to be associated with measures that will almost certainly worsen the country's deep recession.

The European statistics agency Eurostat said Tuesday one in three Greeks now lives below the poverty line -- up from one in five before the crisis.

Diamond trade crashes in Israel

TEL AVIV, Israel, Feb. 9 (UPI) -- The diamond industry in Israel is collapsing after police investigated an illegal bank in a diamond district, a former trade association president said.

The illegal bank near the Ramat Gan Diamond Exchange was apparently involved in money laundering and tax evasion, Haaretz reported Thursday.

But the raid on the bank has triggered a rash of bounced checks that has forced several diamond companies to close.

"The sector has collapsed," said Moti Ganz, former president of the Diamond Manufacturers Association.

"The investigation has ruined the industry. We are in support of (authorities) investigating whoever they need to, but they should give the investigation priority and finish it," Ganz said.

Ganz said the importation of uncut diamonds has come to a halt. "And if there is no raw material now then in another three or four months there will not be any exports of polished diamonds."

Three firms have declared bankruptcy and a fourth, Imber Diamonds, said it was close to bankruptcy with debts of about $20 million. In the meantime, the fear of arrest and of frozen bank accounts has rippled through the sector, putting many deals on hold, Haaretz said.

Wholesale inventories rose in October

WASHINGTON, Feb. 9 (UPI) -- U.S. wholesale inventories rose 1 percent in December, reaching $473.2 billion, the Commerce Department said Thursday.

Inventories were up 10 percent from December 2010, the department said, while the November estimate was revised upward by 0.1 percent or $400 million.

Wholesale sales for December were up 1.3 percent from November to $413.1 billion, a jump of 11.8 percent from December 2010.

The inventory-to-sales ratio -- reflecting how many months it would take a company to deplete its inventory at the current sales pace -- came in at 1.15, slightly lower than the ratio a year earlier, which stood at 1.16.