Business Desk
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

WALL STREET
WALL STREET FINISHES HOLIDAY WEEK WITH NEW MULTIYEAR HIGHS
Investors filled with holiday cheer sent Wall Street’s major indexes to new multiyear highs Thursday, extending the stock market’s winning steak despite a plummeting dollar and signs of weaker consumer spending.
In a session that ended with Santa Claus sounding the closing bell, investors looked past the dollar’s all-time low against the euro, which rose to $1.3483 against the greenback, surpassing its record high set December 7. Although the weaker dollar raises the possibility of higher inflation, investors saw the American currency’s decline as an opportunity to help close the trade deficit, since American goods will be less expensive abroad.
And stocks rose despite a Commerce Department report confirming that Americans have reined in their spending. Consumer spending for November rose 0.2%, slightly less than the 0.3% Wall Street expected and far less than the 0.8% jump in October.
According to preliminary calculations, the Dow Jones industrial average rose 11.23, or 0.1%, to 10,827.12, its highest close since June 13, 2001.
Broader stock indicators were modestly higher. The Standard & Poor’s 500 index was up 0.56, or 0.05%, at 1,210.13, the best close for the index since Aug. 3, 2001.The Nasdaq composite index gained 3.59, or 0.17%, at 2,160.62.
Stocks rallied through the holiday-shortened week, with investor optimism remaining high. The Dow reached new 3 1/2-year highs for three straight sessions, while the S&P saw its second straight high.
– Associated Press
MARKETS
DOLLAR HITS NEW RECORD LOW
The American dollar hit an all-time low in thin preholiday trading yesterday against the euro, which breached the $1.35 mark after a mixed economic report from the Commerce Department. After peaking at $1.3506, the euro eased back slightly to $1.3493, up more than a cent from $1.3381 late Wednesday. The previous high of $1.3470 was set Dec. 7. The 12-nation currency has risen sharply since September, when it was trading for around $1.20, over persistent concerns about the ballooning American trade and budget deficits. The dollar fell against other rivals on Thursday. The British pound rose to $1.9201 in late New York trading, up from $1.9144 late Wednesday. The dollar fell to 103.70 Japanese yen from 104.08; 1.1440 Swiss francs from 1.1523, and 1.2334 Canadian dollars from 1.2442. The euro initially fell against the dollar after its 1999 debut, but it has risen about 63% since bottoming out at 82 U.S. cents in October 2000. President Bush’s administration says it has a “strong dollar” policy but also that it will let market forces set the currency’s strength. Most analysts believe the United States is content to let the dollar fall because it has been making American exports cheaper.
– Associated Press
INTERNATIONAL
WASHINGTON DISAPPOINTED WITH KREMLIN AFTER OIL ASSETS PURCHASE
The State Department said yesterday it was disappointed with the way the Kremlin handled the purchase of Yukos oil assets, contending the action sends the wrong signal to foreign investors. There was no indication, however, that the deal would mar President Bush’s meeting in February in Slovakia with President Putin or cause Mr. Bush to withdraw his support for Russia’s entry in the World Trade Organization. “We deal with Russia the way we deal with important friends and partners,” said a deputy department spokesman, Adam Ereli. In Moscow, Mr. Putin vigorously defended the purchase of Yukos oil assets by a state-owned company, saying the state was just protecting its interests in moving to gain control of the second-largest oil production facility in Russia. “We are disappointed with the way the case has been handled,” Mr. Ereli said, citing a lack of openness. Russia’s standing in the world economy could be hurt, he said. While Russia appears to be moving toward democracy,” there are developments that cause us concern and cause us to feel the need to express our views about what is right and good,” he said. Mr. Bush has stressed a strong friendship with Mr. Putin. Referring twice to Mr. Putin by his first name during a news conference Monday, Mr. Bush gave no indication that they were at odds.
– Associated Press
NATIONAL
US AIRWAYS AGENTS APPROVE CUTS IN PAY, JOBS, BENEFITS
US Airways Group’s customer-service and reservation agents approved a 13% pay cut and eliminating some jobs to save the carrier $137 million a year and help avoid bankruptcy liquidation. Sixty percent of workers who voted approved the agreement, the Communications Workers of America said in a statement yesterday. The accord also reduces holidays and pension benefits, and offers as much as $20,000 to workers with at least five years of service who agree to leave the company early. US Airways is trying to slash $1.5 billion in annual spending, including $950 million from labor, to compete with low-cost carriers and emerge from bankruptcy protection. The Arlington, Va.-based airline has reached at least tentative agreements with all its unions except the Machinists. “We would have done worse in bankruptcy court,” said Chris Fox, president of a union local in Pittsburgh. “For our members, it was the best result possible. There are still a lot of unhappy people out there. When you’re in bankruptcy court, it’s like having a gun to your head.” The agreement takes effect January 1 and runs until 2012.The union said it covers about 6,000 workers. US Airways put the number at 5,600.
– Bloomberg News