U.S. markets head down
NEW YORK, Feb. 7 (UPI) -- U.S. markets were down Thursday on a report that retail sales in the United States were flat in the January.
The overall retail sales index, a major indicator of consumer confidence, rose 1 percent for the month, the slowest gain recorded since a 1.8 percent drop in April 2007.
The Dow Jones industrial average was off 39.43 points, or 0.32 percent, to 12,160.67 in late-morning trading.
The Standard & Poor's 500 index was down 2.76 points, or 0.46 percent, to 1,323.69.
The tech-dominated Nasdaq composite index fell 10.56 points to 2,268.19, off 0.46 percent.
The 10-year U.S. Treasury note gained 4/32, yielding 3.596 percent.
The dollar was mixed. The euro traded at $1.4518, compared with $1.4624 on Wednesday. The dollar traded at 106.33 yen, from 106.48 yen on Wednesday.
In Tokyo, the Nikkei average was up 107.91 to 12,207.15, a gain of 0.8 percent.
Retail chains report lethargic January
NEW YORK, Feb. 7 (UPI) -- The U.S. retail sales index rose a sluggish 1 percent in January, the slowest rate since April 2007, when the index dropped 1.8 percent.
Major retail chains showed a decline in consumer spending that will worry investors, as fears of a national recession build.
Wal-Mart Stores Inc., the world's largest retailer, posted a gain of 0.5 percent on January sales of $27.28 billion. Rival Target saw a same-store sales decline 1.1 percent, while Nordstrom Inc., saw same-store sales decline in January by 6.6 percent.
Limited Brands, parent of Victoria's Secret stores, said sales declined 8 percent compared with sales of a year ago.
Not many companies bucked the trend but Costco Wholesale was able to secure a comparatively healthy same stores sale rise of 7 percent, with 5 percent growth in the United States and 19 percent growth overseas.
Merger talk could spread to more airlines
ATLANTA, Feb. 7 (UPI) -- A Delta Air Lines and Northwest Airlines merger under discussion could trigger a domino effect with other carriers following suit, it was reported Thursday.
Continental's Chief Executive Officer Larry Kellner told The New York Times a Delta-Northwest merger would force him to consider a merger for Continental. United Airlines Chief Executive Officer Glenn F. Tilton has said he would consider merging United with another airline.
Delta and Northwest could save an estimated $1.5 billion annually by combining forces, industry analysts said. Delta's Chief Executive Officer Richard H. Anderson, who was previously chief executive at Northwest, would maintain the top job in the merged company, the Times reported.
Northwest's Chief Executive officer Douglas M. Steenland, who steered Northwest out of bankruptcy, would be given a job in the new company, the report said.
The merger would force cutbacks in jobs. The new company could sacrifice either Delta's hub in Cincinnati or Northwest's hub in Detroit. Similarly, operations at Delta's hub in Atlanta or Northwest's hub in Memphis could be terminated, the Times said.
Northwest reported losses of $8 million in the fourth quarter of 2007; Delta reported losses of $70 million for the same period.
Bribes alleged at fashion venue
NEW YORK, Feb. 7 (UPI) -- As Fashion Week kicked off in New York, the superintendent of the 26th Street Armory, a coveted fashion show venue, pleaded innocent to taking bribes.
James Jackson, a 30-year employee of the New York Division of Military and Naval Affairs, was charged in October with soliciting bribes and gifts to secure prime slots at the armory, which rents for $6,000 a day.
The charges resulted after organizers of the New York International Carpet Show complained that Jackson asked for $1,500 to set up a show a day early without paying the rent fee, The New York Times reported Thursday.
During Fashion Week, the charges claims, bribes have become part of doing business at the armory. Designer Marc Jacobs' company, which has secured prime slots and attracted a celebrity audience for years, is also under investigation.
Jackson solicited more than $40,000 in bribes since 2000, the charges allege.
That addition to the millions a fashion show can cost to produce is unacceptable, New York State Attorney General Andrew M. Cuomo said.
"If anyone believes that they have to pay off or offer a gratuity to access state space, let me know," he said.
