U.S. markets close lower Thursday

NEW YORK, Aug. 6 (UPI) -- U.S. markets closed modestly lower Thursday, despite news initial claims for unemployment benefits dropped last week.

The Labor Department said first-time jobless claims fell by 38,000 to 550,000 in the week ending Aug. 1.

By close, the Dow Jones industrial average lost 24.71 points, 0.27 percent, to 9,256.26. The S&P 500 lost 5.64 points, 0.56 percent, to 997.08. The Nasdaq index fell 19.89 points, 1 percent, to 1,973.16.

On the New York Stock Exchange, 1,147 stocks advanced and 1,878 declined on a volume of 6.7 billion shares traded.

The benchmark 10-year Treasury fell 1/32 to yield 3.764 percent.

The euro fell to $1.4355 from Wednesday's $1.4415. Against the yen, the dollar rose to 95.38 yen from Wednesday's 94.97 yen.

In Japan, the Nikkei 225 added 135.56 points, 1.32 percent, to 10,388.09.

In Britain, the FTSE 100 index gained 43.40 points, 0.93 percent, to 4,690.53.

Expert: Credit cards are sneaking in fees

NEW YORK, Aug. 6 (UPI) -- U.S. credit card companies are trying a stealth approach to raising fees -- raising those least likely to attract attention, an industry researcher said.

Banks are "hoping to slip in fees where they're least likely to be noticed," Adam Jusko, founder of IndexCreditCards.com told USA Today Thursday.

Banks have raised a variety of fees in recent months in anticipation of the credit card reform law passed in May that prohibits raising established rates on some accounts and includes other restrictions.

Among the fees raised recently, Fifth Third Bank initiated a $19 fee for borrowers who show they have not used their credit accounts in 12 months -- an inactivity fee.

Discover has begun charging 2 percent for purchases made outside the United States.

Citigroup has begun a new fee for "reinstating" card holders into their benefits plan and set the fee at hard-to-complain-about $0.

A bank spokesman, Samuel Wang said, "we currently have no plans to raise it."

Better than gold: A cab medallion

NEW YORK, Aug. 6 (UPI) -- The value of a taxi medallion in New York City has risen more than stocks and even gold, the president of Medallion Financial said recently.

"It has out performed every index you can think of," company President Andrew Murstein said.

The average prices for one of 13,257 taxi licenses issued by the city depend on the type. The value of an individual license climbed 33 percent since January 2008 to $572,000. For corporate licenses, which allow owners to hire agents to lease out the business, the price has jumped 28 percent to $766,000. USA Today reported Thursday.

Mathew Daus, chairman of the New York Taxi & Limousine Commission, said the price is driven by supply and demand. New York has more than 46,000 cab drivers competing for a strictly controlled number of taxi medallions, Daus said.

The commission caps the weekly leasing fee for a shift in a cab at $800 a week, but driver Zafar Raja said "brokers are doing whatever they want and you can't argue, because there is no job security."

"I know someone who is paying $900 for a single-driver weekly night shift," he said.

Geely said to be pursuing Volvo

STOCKHOLM, Sweden, Aug. 6 (UPI) -- Sources close to the deal making said Chinese automaker Geely Automotive Holding is assembling a bid to purchase Volvo Cars from Ford Motor Co.

The bid for the Swedish car company will include a consortium of interests, including an undisclosed investor from Sweden, The Local reported Thursday.

Former Volvo Chairman Pehr Gyllenhammar is assisting British investment bank Rothschild to help Geely present its case as a viable bidder, the newspaper said.

The plan includes building up market share in Europe and China, the newspaper said.

News reports in June that Geely Automotive Holdings would bid on Volvo were denied by Ford, Volvo and Geely.

The new offer includes Ford holding onto a minority share of the company, the sources said.

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