U.S. markets slide Tuesday

NEW YORK, Nov. 3 (UPI) -- U.S. markets stumbled Tuesday with policy makers at the Federal Reserve headed into a two-day meeting in Washington.

The start of the Open Market Committee meeting often puts investors into a two-day holding pattern as they wait for critical news on the central bank's lending rate decisions.

Stocks retreated early, but railroad shares surged 11.58 percent after billionaire investor Warren Buffett said he would buy Burlington Northern Santa Fe for $44 billion.

In late morning trading, the Dow Jones industrial average lost 0.49 percent, 48.29 points, to 9,741.15. The Standard & Poor's 500 index slipped 0.40 percent, 4.15 points, to 1,038.73. The Nasdaq composite index dropped 0.51 percent, 10.45 points, to 2,038.75.

The benchmark 10-year U.S. Treasury gained 4/32 to yield 3.409 percent.

The euro fell to $1.4658 from Monday's $1.4766. Against the yen, the dollar rose to 90.41 yen from Monday's 90.35 yen.

In Japan, the Nikkei 225 index lost 2.31 percent, 231.79, to 9,802.95.

Berkshire Hathaway to buy railroad

FORT WORTH, Texas, Nov. 3 (UPI) -- U.S. billionaire Warren Buffett's investment firm Berkshire Hathaway said Tuesday it would purchase Burlington Northern Santa Fe Corp. for $44 billion.

By one measure, the purchase is the feather in the cap for Buffett's investment portfolio. It is the largest purchase Berkshire Hathaway has ever made, the firm said.

"Our country's future prosperity depends on having an efficient and well-maintained rail system," Buffett, known as the Sage of Omaha, said in a statement.

"Most important of all, however, it's an all-in wager on the economic future of the United States. I love these bets," Buffett said.

Mathew Rose, the railroad's president and chief executive officer said the investment "will allow BNSF to focus on future needs of our railroad, our customers and the U.S. transportation infrastructure."

The deal values BNSF at $100 per share, to be paid in stock and cash. Berkshire Hathaway is also assuming about $10 billion in outstanding debt with the purchase.

On Wall Street, stocks stumbled early Tuesday, but railroad shares spiked, jumping 11.58 percent in the early going.

The deal, expected to close in the first quarter next year, is subject to regulatory review and requires approval of two-thirds of the corporation's outstanding shares.

Stimulus job gains in question

WASHINGTON, Nov. 3 (UPI) -- The 640,329 jobs created or saved by the $787 billion stimulus bill includes inflated figures based on "confusing" reports, a review of the data found.

USA Today reported Tuesday that the manager of a public housing project in Blooming Grove, Texas, reported a gain of 450 jobs based on $26,174 in stimulus funds for maintenance projects.

An inquiry found he had hired six workers, including five roofers and one inspector. "The money was great, but the reports are really confusing," Bob Bray, the manager, said.

Bray said on the advise of a federal official he reported the number of hours worked, instead of jobs gained. The Department of Housing and Urban Development discovered the error, but not before job figures were made public.

White House spokeswoman Liz Oxhorn said, the numbers give the public "one of the best looks ever at real-time information about a major initiative." The reporting system, "allows people to find any mistakes, as it should -- which will help us correct them promptly," she said.

Some numbers are hard to reconcile. The Plymouth, Conn., Police Department reported a gain of 108 jobs with a grant of $15,355. The Southwest Georgia Community Action Council reported a 935 job gain based $1.3 million in stimulus funding, the newspaper said.

U.S. air fares tweaked before holidays

NEW YORK, Nov. 3 (UPI) -- Finding lower air fares requires U.S. consumers use a different approach than was recommended a year ago, a travel pricing expert said.

Last year, as the holidays approached, it was best to wait before buying a ticket since fares were dropping, said Tom Parsons of BestFares.com.

"This year is so different from last year, when the best plan was to wait until closer to see how low the airlines would take their prices," he said.

This year, the better strategy would be to buy sooner than later, USA Today reported Tuesday.

Although some discount airlines have recently announced holiday sales, for the most part airlines have adjusted their schedules and the sizes of their fleets to accommodate the lower demand for tickets. With these changes in place, as demand rises airlines can once again raise prices for days that planes are expected to be full.

Delta, Northwest, United and American have bumped surcharges from $10 to $20 each way, applicable to this year's busiest travel days, the newspaper said.

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