DOW DOLLAR BONDS30 INDUSTRIALS VS. JAPANESE YEN 30-YEAR U.S.
2484.6 28.25 yen 8.73%
-20.05 +1.76 -0.05
The stock market pulled back Thursday, faced with revived upward pressure on oil prices. The Dow Jones average of 30 industrial stocks fell 20.05 points to close at 2,484.16. The price of crude oil for December delivery climbed $3.17 a barrel to close at $34.25 on the New York Mercantile Exchange.
Home sales lowest
in nearly three years
Declining consumer confidence and the Persian Gulf crisis pushed September sales of existing homes down 8 percent, the National Association of Realtors reported Thursday.
The Realtors said resales totaled a seasonally adjusted 3.22-million houses, the slowest pace since January 1988.
All regions posted sales declines except for the Northeast, which was unchanged from an already low level. The South led the sales decline, falling 10 percent to an annual rate of 1.26-million units.
Realtors president Norman D. Flynn said declining confidence in the economy has been fueled by uncertainty over the impact of federal budget legislation and the Persian Gulf situation.
TWA BIDS FOR EASTERN ASSETS. Trans World Airlines Inc. has offered to buy more than 50 Eastern Airlines gates in Atlanta and Eastern's aircraft overhaul base in Miami, says TWA chairman Carl Icahn. No terms were disclosed. Icahn told the Kansas City Star that TWA, which lost $300-million last year and has been eliminating flights and employees, has about $1-billion in reserves for such a purchase. Icahn told the paper that creditors solicited the offer for Eastern, which is in bankruptcy reorganization. TWA, which is based in Mount Kisco, N.Y., has its major hub in St. Louis.
UNISYS TO CUT 5,000. Unisys Corp. on Thursday announced the resignation of its chairman, W. Michael Blumenthal, and said it plans to eliminate 5,000 jobs. The company has not determined where the job cuts will be made, said William Beckham, vice president of communications for the defense systems unit, which includes the Unisys plant in Oldsmar. The Oldsmar plant has eliminated about 200 jobs over the past year, dropping employment to about 640. The nation's third-largest computer company, based in Blue Bell, Pa., also announced that it lost $356.8-million in the third quarter, compared to a loss of $648-million in the same period last year.
S&L FIGURE INDICTED. The former owner of a failed Dallas savings and loan was indicted in the diversion of $18-million from it. Jarrett E. Woods Jr. is charged with using the funds to help pay off bad loans so regulators wouldn't discover Western Savings Association was insolvent. A bailout is expected to cost $1-billion.
"JOURNAL' RAISES PRICE. Dow Jones & Co. Inc. said Thursday it will raise the newsstand price of the Wall Street Journal by 50 percent to 75 cents a copy effective Dec. 3, the highest cover price for any major U.S. daily newspaper.
PRATT KEEPS JOBS. Pratt & Whitney has changed its mind and decided not to lay off workers at its military jet-engine complex in West Palm Beach this fall as planned. The East Hartford, Conn.-based company said Thursday that officials have accomplished the job-reduction goals announced in August through attrition and an increased workload in West Palm Beach. However, Pratt still plans to cut 2,000 Florida jobs by 1992.
FPL GROUP. FPL Group, the parent of Florida Power & Light Co., suffered a jolting third-quarter loss of $569-million, and plans to sell its Colonial Penn financial services unit. FPL Group and regulators said the loss will not affect electric rates. The North Palm Beach-based company's after-tax charges for the quarter totaled $752-million, of which $689-million represented writedowns related to Colonial Penn. Without the charges, FPL Group would have had a $183-million profit. It recorded earnings of $163-million, or $1.20 a share, a year earlier.
BANK OF BOSTON. Bank of Boston on Thursday reported a $255-million loss in the third quarter ended Sept. 30, the victim of the deteriorating Northeast economy and real estate market. Bank of Boston reported a $125-million loss in the same quarter of 1989. New England's largest bank said it set aside $200-million for bad loans during the quarter, bringing the total loan loss provision for 1990 to $450-million.