WASHINGTON, Oct. 30 (UPI) -- Here is a look at some of Tuesday's top business stories:
US consumer confidence hits 7-year low
WASHINGTON, Oct. 30 (UPI) -- The terrorist strikes, coupled with the parade of bleak corporate news and a slew of layoff announcements since Sept. 11, slashed October's consumer confidence to its lowest level in more than seven years.
The Conference Board reported Tuesday that its Consumer Confidence Index fell to 85.5, down from 97 in September. The latest result is the lowest since February 1994, when the index hit 79.9.
"The economic outlook is becoming increasingly pessimistic, with consumer sentiment continuing to fall," said the Conference Board's Consumer Center Director Lynn Franco. "Widespread layoffs and rising unemployment do not signal a rebound in confidence any time soon. With the holiday season quickly approaching, there is little positive stimuli on the horizon."
Indeed, the New York-based board's expectation index, which gauges future economic activity, fell to 70.8 from 78.1, while the present situation index fell to 107.6 from 125.4. The organization surveyed approximately 5,000 households between Oct. 1 and Oct. 19 about the overall domestic economy, as well as their personal job prospects and spending plans.
Meanwhile, 20.7 percent of those surveyed stated that jobs are "hard to get," compared to 18.8 percent the previous month.
"The deterioration in labor market conditions have had the worst impact," said Scott Brown, the senior economist at brokerage house Raymond James.
He pointed out that companies had been laying people off even before the terrorist attacks, but that trend has only accelerated since then.
Dell introduces "off-the-shelf" PC
AUSTIN, Texas--Dell Computer Corp has introduced an off the shelf PC -- as opposed to its custom-made computers -- that the company hopes will compete with PCs sold in retail stores.
The Austin, Texas-based Dell is the largest PC seller in the world, and was a pioneer of all-online ordering and custom-manufacturing of computers for customers.
The company unveiled Monday its SmartStep PC, which is designed as a low-cost, one-size-fits-all personal computer system, which is prebuilt.
The cost starts at $599 which is the lowest pricing Dell has set for any of its products. The system includes a monitor, six months of Internet access, speakers, and service and support from Dell.
The SmartStep can also be purchased for a payment of $18 a month.
"For about the cost of two movie tickets and popcorn every month, customers can own a Dell SmartStep.," said John Hamlin, vice president and general manager of Dell's consumer business.
For the average home user, the basic configuration includes an Intel Celeron microprocessor at 1 GHz, 128 megabytes of memory, a 20 gigabyte hard drive, PC speakers, a 15 inch (13.8" viewable) monitor, a modem, and six months of AOL Internet service. Additionally, customers receive Microsoft's new Windows XP Home Edition operating system, Music Match software for listening to digital music and Dell Picture Studio for processing and sharing digital photos.
Dell's introduction of the SmartStep comes amid a continued drop in PC purchases by consumers and corporations, each respectively opting to continue using their current PC models.
PC sales at the retail level have dropped by up to 40 percent below the sales rates from a year ago, according to industry experts.
The SmartStep units will be built by Taiwanese PC maker Mitac International, a longtime supplier of lowcost, prebuilt PCs to such Dell Rivals as Compaq and Hewlett-Packard.
CVS 3Q net earnings down 16 percent
Woonsocket, Rhode Island, Oct. 30 (UPI) -- Pharmaceutical chainstore CVS reported Tuesday that its net earnings for the third quarter fell 16 percent from the previous year to $123.7 million, even though sales increased by 10.1 percent to $5.4 billion.
"We are disappointed with our results for the third quarter and committed to taking the necessary actions to improve performance and restore healthy long-term growth," said CVS chief executive officer Tom Ryan.
He outlined a business program to rationalize operations, which includes closing about 200 stores before the end of the first quarter next year. CVS will also close one of its ten distribution facilities, and one of its two mail order facitilies.
"These actions will address the isolated issues we have faced this year," Ryan added.
Sales in the fourth quarter are expected to increase 8 to 9 percent from the previous year, but the company expects to post a pre-tax restructuring and asset impairment charge of about $350 million in the three months ending December.
