Stocks slip in midweek trading
NEW YORK, July 16 (UPI) -- Stocks tumbled Wednesday on disappointing earnings from Ford, Motorola and Lucent and a third quarter warning from chip giant Intel.
Dow Jones industrial average 34.38 or 0.38 percent to 9,094.59. The Nasdaq composite index lostslipped 5.24 or 0.30 percent to 1,747.97 and the Standard and Poor's 500-stock index edged down 6.33 or 0.63 percent to 994.09
Intel said late Tuesday second-quarter net income doubled and projected a sharp jump in its gross profit margin. Its shares rallied 4.3 percent Wednesday and helped keep the Dow industrials from sliding too far.
Offsetting Intel's success were less-impressive earnings news from Ford, Motorola and Lucent and a lackluster assessment of the economy from Federal Reserve Chairman Alan Greenspan.
The dollar was mixed. The dollar rose to 118.16 yen from 117.86 yen late Tuesday in New York, while the euro rose to $1.1207 from $1.1185 in the previous session.
U.S. gasoline supply at summer normal
LOS ANGELES, July 16 (UPI) -- U.S. gasoline inventory Wednesday was within normal range for this time of year due to a marked increase in production.
The U.S. Energy Information Administration reported a 3.9 million barrel jump in the nation's gasoline supply for the week ending July 11, which the agency said was "well within the normal range" for summer.
The New York Mercantile Exchange reacted by falling more than 5 cents a gallon before settling 4.21 cents lower on the day at 89.02 cents per gallon.
The EIA said higher refinery production levels and decreased demand offset a decline in gasoline imports.
Crude inventories remained on the low side, however, falling 3.6 million barrels last week.
More safety called for 15-person vans
WASHINGTON, July 16 (UPI) -- Federal safety investigators recommend that 15-passenger vans -- popular with school and church groups -- be equipped with additional safety belts.
Investigators also called for better training and licensing for drivers, who are often ill-equipped to handle the vehicles when fully loaded with passengers and cargo during an emergency or abrupt maneuver as well as stronger roofs to prevent injuries during accidents.
The National Transportation Safety Board made the findings following a two-year investigation into high-profile van crashes in Texas and North Carolina.
"We have identified a gap in (federal safety) rules," said NTSB Chairwoman Ellen Engleman. "We have a vehicle designated as a bus, but structurally, it's not built to the same safety standards as a bus."
Engleman said the vans have been engineered and marketed outside the parameters of the safety standards that apply to a commercial vehicle, the Detroit News reported.
Citigroup to buy Sears's credit-card unit
CHICAGO, July 16 (UPI) -- Citigroup has agreed to acquire the credit card business of Sears, Roebuck & Co. for $6 billion, relieving from dealing with a spate of credit card debt.
Citigroup will pay Sears about $3 billion, a 10 percent premium, for Sears's $29 billion gross domestic credit-card receivables portfolio.
For its part, the one-time World's Largest Store will also free $3 billion in invested capital in the deal, netting the retailer pretax cash proceeds of about $6 billion.
The Wall Street Journal said that earlier this year, Sears was considering selling the credit-card division in order to focus on retail operations.
Credit cards have been a big part of Sears' business over the years, representing 60 percent of the company's annual operating income. But the credit-card unit has been hurt badly by rising delinquencies.
