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Newspaper
Middletown Journal
Location
Middletown, Ohio, United States of America
Date
Oct 16, 2004
Page
6
Market watch reports mixed trading with 2,201 advances and 1,044 declines and 58 percent volume. New highs reached 54 while 1,233 stocks fell to new lows and 452 remained unchanged in 64 per cent of trading volume.
General Motors plans to shut the Saginaw Malleable Iron Plant by September 2007 and will help about 350 employees relocate. Production will transfer to a GM foundry in Defiance Ohio over time. The plant opened in 1917 and employs slightly more than 300 hourly and about 50 salaried workers.
The New Albany based retailer Abercrombie & Fitch recalled a T shirt showing a gymnast on the still rings with the slogan L is for Los er saying it mocked the sport. The shirt is off shelves and removed from the company website.
DALLAS Blockbuster Inc says it will undercut Netflix on the price of renting DVDs over the Internet. Netflix shares fell sharply after announcing a $17.99 monthly subscription for DVD rentals starting Nov 1, down from $21.99, while Blockbuster charges $19.99. The move lit a budding price war as investors reacted.
United Airlines told a bankruptcy court and employees it needs significantly more cost cuts beyond expectations due to fuel price spikes, industry overcapacity, and low fares. It will begin talks with unions on contract changes next month and may seek to void existing contracts in mid January if negotiations fail, seeking court-imposed reductions.
Kroger Co and United Food and Commercial Workers Local 1099 recess talks for a weekend to review proposals with a federal mediator's suggestion. Spokesmen said re-open Monday. progress noted on health care and pension funding for about 8500 workers in 70 stores across Ohio Kentucky and Indiana while a prior strike impact lingers.
U S shoppers boosted September retail sales 1.5 percent the strongest since March while August saw a 0.2 percent drop. Automobiles led gains with broad spending on electronics, appliances, building materials and clothing. Inflation still viewed as contained as industrial output rose 0.1 percent and wholesale prices up 0.1 with Fed noting uneven impact from hurricanes.
Federal Reserve Chairman Alan Greenspan argued that this year’s oil price surge should not replay the 1970s shocks that toppled growth. He noted prices near record highs while predicting the global economy would adjust through tech gains and efficiency, though a bumpy transition could occur. He cited oil’s impact as a roughly 0.75 percent drag on GDP and said policy will react as needed to keep inflation in check. He cautioned about Middle East risks but remained hopeful about continued exploration and fuel efficiency easing long term supply concerns.
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