Fed Support Lifted Wall St. To Best Month Since January

After a day of stalled rallies, the stock market closed out July with its best monthly gain since January.

The Standard & Poor’s 500-stock index ended the month 4.95 percent higher. That was the biggest increase since January, when it rose 5.04 percent. The Dow Jones industrial average also had its best month since January.

Markets surged in July after the Federal Reserve chairman, Ben S. Bernanke, assured investors that the central bank would not curb its stimulus program until the economy was strong enough. The Fed is buying $85 billion of bonds a month to keep down interest rates to encourage borrowing and hiring.

On Wednesday, the Fed reaffirmed its commitment to support the economy in a statement released after the end of a two-day meeting. The central bank dropped hints that it might need to maintain its stimulus, and slightly downgraded its assessment of economic growth in the United States from “moderate” to “modest.”

That initially gave stocks a boost, pushing the S.& P. 500 within two points of breaching 1,700 for the first time, in afternoon trading. But the rally faded in the final hour, leaving the S.& P. flat at the end of the day.

Given the market’s big gains in July, stocks may struggle to climb further in the coming months, said Philip J. Orlando, chief equity market strategist at Federated Investors. “I would not be the least bit surprised to see some modest consolidation,” he said.

Stocks started higher on Wednesday after the government said that the economy grew at an annual rate of 1.7 percent in the second quarter as businesses spent more and the federal government cut less spending. Economists had expected growth of 1 percent, according to the data provider FactSet.

There was also an encouraging report on hiring ahead of the government’s monthly jobs survey due Friday. Businesses created a healthy 200,000 jobs in July, the payroll company Automatic Data Processing said, as companies hired at the fastest pace since December.

The S.& P. 500 ended little changed at 1,685.73. The Dow Jones industrial average fell 21.05 points, or 0.1 percent, at 15,499.54. The Nasdaq composite index rose 9.90 points, or 0.3 percent, to 3,626.37.

In the bond market, investors anticipated that the Fed’s slightly weaker assessment of the economy would imply a longer period of bond purchases. The price of the 10-year Treasury note rose 5/32, to 92 26/32, while its yield fell to 2.59 percent from 2.61 percent late Tuesday.

European and Japanese Central Banks Pledge Support, Boosting Shares and the Dollar

ECB Executive Board member Joerg Asmussen said on Monday the policy would stay as long as necessary. On Tuesday, BOJ board member Ryuzo Miyao said it was vital to keep long- and short-term interest rates stable.

Yields on U.S. Treasuries surged to their highest levels in over a year as prices skidded. A strong consumer confidence report underscored the notion that the Federal Reserve could soon trim its bond-buying program.

"The vicious selling once again materialized after the much-stronger-than-expected consumer confidence report," said Cantor, Fitzgerald Treasury strategist Justin Lederer.

Yields have jumped since Fed Chairman Ben Bernanke said on Wednesday that the U.S. central bank may decide to decrease its bond purchases gradually in the next few policy meetings if data shows the economy is gaining steam.

"The path of least resistance is higher yields," said Sean Simko, portfolio manager at SEI Investments.

Benchmark 10-year notes fell more than a point to 96-7/32 while their yields, which move inversely to price, soared to 2.17 percent from 2.01 percent on Friday. Ten-year yields have surged from 1.61 percent at the beginning of May as optimism about the economy has grown.

Thirty-year bonds fell more than two points in price while their yields rose to 3.33 percent, the highest level since March, and up from 3.18 percent on Friday.

Both the 10-year notes and 30-year bonds are on track for their worst monthly loss since December 2009.

U.S. STOCKS, DOLLAR RECOVER

U.S. stocks recovered from recent weakness, propelling the Dow to finish at yet another record closing high.

The Dow Jones industrial average gained 106.29 points, or 0.69 percent, to end at a record 15,409.39. The Standard & Poor's 500 Index rose 10.46 points, or 0.63 percent, to 1,660.06. The Nasdaq Composite Index climbed 29.74 points, or 0.86 percent, to close at 3,488.89.

The dollar rebounded against the euro and yen after data on U.S. consumer confidence and home prices suggested the world's largest economy was on a steady road to recovery.

The Fed's stimulus program is viewed as negative for the greenback because it floods the market with dollars.

A measure of U.S. consumer confidence rose in May to its highest level in more than five years. That private-sector report followed data showing single-family home prices rose in March, with their best annual gain in nearly seven years.

Higher Treasury yields have also boosted the appeal of dollar-denominated investments.

DOLLAR RISES AGAINST YEN AND EURO

The U.S. dollar rallied against the euro and yen as the stronger-than-expected U.S. economic data underscored views the Fed could reduce its bond purchases in coming months.

Against the yen, which tumbled broadly, the dollar rose 1.2 percent to 102.09 yen, rebounding from a two-week low of 100.68 set on Friday. The dollar rose to a 4-1/2-year high of 103.73 yen last week.

The euro rose 0.6 percent to 131.24 yen, pulling away from Thursday's trough of 129.94 yen.

The safe-haven Swiss franc fell, down 1.1 percent against the dollar at 0.9740 franc and down 0.6 percent against the euro at 1.2533 francs.

Currencies such as the yen and the Swiss franc, which rose sharply last week after a recent sell-off in stock markets, typically gain in times of financial uncertainty.

The dollar index, which measures the greenback versus a basket of currencies, rose 0.6 percent to 84.172.

Gold fell 1 percent as the stock market rally diminished bullion's safe-haven appeal. Strong buying of physical bullion, however, briefly reversed gold's fall.

Spot gold was down 1 percent to $1,380.81 an ounce by 3:25 p.m. EDT (8:25 p.m. British time), after trading as low as $1,373.14.

U.S. Comex gold futures for June delivery settled down $7.70 at $1,378.90 an ounce.

Among other precious metals, silver was down 1.7 percent to $22.25 an ounce. Platinum rose 0.6 percent to $1,455.74 an ounce, while palladium gained 2.1 percent to $751.22 an ounce.

Brent crude oil rose on increased Middle East risk and as stocks rallied. Brent crude oil for July rose $1.61 to $104.23 per barrel while U.S. crude rose $0.95 to $95.10 per barrel.

The promise of monetary support from the European and Japanese central banks was reinforced as French, German and Italian governments urged action to tackle youth unemployment. [ID:nL5N0E911M] Youth unemployment in countries like Greece and Spain has risen to 60 percent. [ID:nL3N0DY1IW]

In Europe, the broad FTSE Eurofirst 300 index closed up 1.3 percent at 1,246.44, while MSCI's world equity index rose 0.5 percent, reversing four days of losses.

Japan's Nikkei stock index, which last week reached a 5-1/2-year high before dropping 7.3 percent on Thursday, steadied on Tuesday, ending 1.2 percent higher.

(Additional reporting by Karen Brettell, Gertrude Chavez-Dreyfuss, Ryan Vlastelica and Frank Tang; Editing by Nick Zieminski and Dan Grebler)

The Haggler: Tracking a Child Support Mix-Up In New York

There are surveys that cover just about every aspect of air travel: rates of on-time departures, rankings of frequent-flier programs, and on and on. But the Haggler has never seen a study that shows which airlines regard fliers as the biggest idiots.

Huge omission, right? And until a thorough inquiry is undertaken, the Haggler contends that US Airways takes the dimmest view of its customers’ intelligence. On what evidence is that conclusion based? When you call the airline’s reservation number, the first utterance you hear after you shimmy up the phone tree and await a representative is this:

“Note that under federal law, passengers are prohibited from bringing hazardous materials on the aircraft.”

Is there a sentient human on this planet who is unaware that bringing hazmat on a jet is verboten? Is it not self-evident that loading up your baggage with potentially lethal, flammable and/or toxic chemicals is uncool, not to mention illegal?

The most charitable explanation here is that US Airways is just trying to kill some time by filling your ears with factoids, as you stew on hold. But being called a dummy, by implication, doesn’t make the stewing more pleasant. Quite the opposite. Why not just remind us to wear clothing to the airport? Or to walk upright?

The Haggler posed these questions to US Airways, mostly because he can. A spokesman, John McDonald, wrote back and noted that a lot of passengers have no idea how many everyday items are considered hazmat by the Federal Aviation Administration. He listed some: spare curling-iron gas cartridges, dry ice in an airtight container, a can of aerosol spray starch, loaded firearms.

The loaded firearms — not really a surprise. But the others are.

“Our friendly little reminder on the start of the call,” Mr. McDonald wrote, “is just to pique interest, as it did with you, to ask the question: What is hazmat?”

Respectfully, as an interest piquer, the “little reminder” stinks. So here’s some free advice: Bag the little reminder and give callers a list of the surprising items that are banned. Or list eight items that might be hazmat and challenge callers to pick out the one that isn’t.

“Great idea,” wrote Mr. McDonald, effectively neutralizing the Haggler with cheap praise. “I’ll pass it along to our reservations team.”

Problem all but solved.

Question: Is there any way to improve the world that is too trivial for the Haggler?

Apparently not!

Enough of this folderol. It’s question time.

Q. I am a single mother, and my case does not involve bad corporate customer service but rather the seemingly impenetrable New York City Office of Child Support Enforcement that has for months now miscalculated the child support arrears owed by my daughter’s father.

An order was issued by family court on Nov. 30, 2012, specifying that the support collection unit of the O.C.S.E. was to assess the father’s arrears at $12,568 plus the previously calculated arrears, which were $7,439. Instead of adding the new arrears to the old, as instructed by the court order, the O.C.S.E. substituted the new arrears of $12,568 for the previously calculated arrears of $7,439. An amended order was issued on Jan. 8, 2013, in an attempt to be clearer for the O.C.S.E.’s employees.

The amended order came only after I spent five hours speaking with eight different people in two different buildings.

But the new order didn’t help. Yet again, the O.C.S.E. simply substituted the new arrears of $12,568 for the previously calculated arrears of $7,439.

I have spent the past four months doing everything within my power to rectify this situation, and I have failed. If I were to seek legal counsel to help me, I’d be spending thousands of dollars to try to get a state bureaucracy to do its job enforcing a court order. The $7,439 that I am trying to get would be spent in legal fees.

If you would consider trying to intervene on my behalf, I would be more grateful than you could know.

L.G.

New York

A. The Haggler has spent little time dealing with the public sector, so he sent an e-mail to Bill de Blasio, the city’s public advocate. Mr. de Blasio, who is seeking the Democratic nomination for mayor, runs an office that mediates between the electorate and the city government. He handed off this matter to a staff member, Phil Walzak, who brought in the office’s director of constituent services, America Canas.

The pair went at this for several weeks. On April 23, Mr. Walzak wrote to say, “Still gathering the details on this case, but my constituent services person says the case outcome is actually positive.”

The Haggler spoke to Mr. Walzak and Ms. Canas a few days later, and they were low on details about what exactly went wrong at the Human Resources Administration, home of the O.C.S.E.

“Why it got screwed up at the front end, we don’t know,” Mr. Walzak said.

“A little bit of a missed communication,” Ms. Canas speculated, “and a lot of emotion.”

The leaders at the Human Resources Administration did not offer much more illumination. A spokeswoman, Carmen Boon, initially suggested that this entire matter was fed to the Haggler by the public advocate’s office, presumably to make that office seem like heroes. (Untrue.) Then she e-mailed a statement.

“This is a very rare instance in which an unconventional court order lacking proper terminology and not identifying a specific dollar amount to add back to the arrears balance caused confusion among our staff,” Ms. Boon wrote. “Once the issues with the order were detected, H.R.A. worked as quickly as possible to update the amounts owed and fix this unfortunate situation.”

It would nice to file this entire affair under the category of “learning experience.” But nobody here seems to have learned anything. Other than the Haggler, who learned that he much prefers dealing with the private sector, where blame-pinning is invariably far easier.

E-mail: haggler@nytimes.com. Keep it brief and family-friendly, include your hometown and go easy on the caps-lock key. Letters may be edited for clarity and length.

F.T.C. Crackdown Aims At Tech Support Scams

WASHINGTON — Consumer frauds often make claims that are too good to be true. But a recent one, cited by regulators around the world Wednesday, depended on a pitch that many people found completely believable — that Microsoft or another computer company knows what is on your personal computer.

The Federal Trade Commission announced a multinational crackdown on so-called tech support scams, in which a caller fools a consumer into believing Microsoft or a computer security company has discovered that a PC is infected with harmful software. The caller then offers to fix the computer on the spot for a price. The target would sometimes let the ostensible tech support company gain remote access to his computer, allowing the company to download software to it.

In six cases filed in federal district court in Manhattan, the commission named 17 individuals and 14 companies, most in India, as participants in the operations, including many with legitimate-sounding names like Virtual PC Solutions and Zeal IT Solutions.

At the commission’s request, a federal district judge in Manhattan froze the United States assets of the suspects. The commission also said it had shut down 80 Internet domain names and 130 phone numbers in the United States used in the scheme. Efforts to reach several of the companies and individuals were unsuccessful.

Jon Leibowitz, chairman of the trade commission, said at a news conference that the scheme involved getting a computer user to look at a program that is a standard part of the Windows operating system.

That program, known as “Event Viewer,” displays logs of operating-system events, which can sometimes carry the benign label “Warning” or “Error.”

The caller would then warn that those files indicated viruses that could crash the computer or, in at least one case studied by the F.T.C., that the computer could explode.

“Clearly the defendant’s M.O. was to exploit these fears about malware hiding in the machine,” Mr. Leibowitz said. “These scams fleeced English-speaking consumers worldwide likely to the tune of tens of millions of dollars and resulted in innumerable Do Not Call violations in the United States.”

Officials said they were unable to pinpoint the number or dollar-amount of violations because many of the victims might not yet be aware they were taken.

But Microsoft later provided data on its contacts with 1,045 people who had told the company they believed they had been contacted by a fake tech support caller. More than 400 of those either fell victim to such operations, with losses averaging $875, or had to pay an average of $1,700 to repair damage to their computer.

The suspected fraud occurred in several English-speaking countries. Joining the F.T.C. in the enforcement action were the Australian Communications and Media Authority, the Canadian Radio-Television and Telecommunications Commission and Britain’s Serious Organized Crime Agency.

David Vladeck, director of the F.T.C.’s Bureau of Consumer Protection, said the commission was working with law enforcement officials in India to catch the perpetrators. The commission has also referred the cases to the Justice Department for possible criminal prosecution.

The scheme relied on boiler-room cold calls or ads connected to Google searches that offered the phone numbers for phony tech support services for a specific computer brand.

The callers, who usually asserted that they represented technology companies like Microsoft and Dell and security companies like Symantec and McAfee, would try either to sell virus-protection software or to get the consumer to allow remote access to his computer so that the caller could then “fix” it, for fees of $45 to $450.

Frank Torres, director of consumer affairs at Microsoft, who also spoke at the news conference, said the company “will never cold call a consumer and ask for their credit card information to charge them for a service that they don’t need.”

A consumer who gets a call like this, he added, should go to the site of a trusted computer-security resource to determine whether any threat is present.

In an interview, Mr. Torres said it was understandable that a consumer might believe that Microsoft could monitor the computers of Windows users.

Microsoft does have a lot of information about what is on many consumers’ computers. Most Windows users have probably seen a message asking if they want to send information about a program error to Microsoft.

And depending on a user’s security setting, Microsoft often sends patches and updates to its programs for consumers to download and install.

Microsoft collects that information because “part of our role is to do everything we can to protect consumers,” Mr. Torres said. Several units at Microsoft, including a digital crimes division, monitor messages from consumers about potentially illicit software or events.

The latest scheme is not entirely new; this week the commission ended a four-year investigation and enforcement action against a similar operation in which more than one million consumers were conned into buying software that supposedly remove malicious files. Last month, a federal district court in Maryland imposed a $163 million judgment against one of the defendants.

“Commerce is global, which is great for consumers, but it’s a double-edged sword,” Mr. Leibowitz said. “It allows scammers to go where the money is, where it’s made most easily and to engage in global scams.”