Investor's Business Daily articles from July 2002

Investor's Business Daily archives from July 2002

Focus On Stocks Losing Less Than The Indexes.(A)(INVESTOR'S CORNER)
July 1, 2002... Byline: CRAIG SHAW Believe it or not, bear markets have their advantages. For one thing, they give investors a chance to brush up on trading skills. For another, they let future leading stocks form the bases that will launch them to...

Consumers Tap Brake, But Factories Pick Up As Rebound Broadens Personal Spending Off 0.1% But incomes climb 0.3%; housing strength signals faster consumption later.(A)
July 1, 2002... Byline: JED GRAHAM Consumers put the brakes on new spending in May, even as wages and salaries grew at their fastest pace in six months, the Commerce Department said Friday. Separately, the Chicago Purchasing Managers' Index showed...

IBD'S TOP 10.(A)
July 1, 2002... Consumer Spending Slides 0.1% 1Americans cut spending in May for the first time since Nov. as they stayed away from auto showrooms. But incomes rose 0.3%, the sixth straight gain. The consumer has been the recession's bright spot. May's...

AFTER THE CLOSE.(TO THE POINT)
July 1, 2002... HONDA will airlift steel from Japan to its U.S. and Canada plants. A shortage of U.S. steel products and tough price negotiations spurred the costly step. HOME DEPOT will now seek U.S. government business, just a few weeks after reminding...

BUSINESS BRIEFS.(TO THE POINT)
July 1, 2002... TECHNOLOGY Apple execs sold before warnings Apple Computer execs sold big chunks of company stock just before two profit warnings in the past two years. Each warning caused the stock to tank. No other big insider sales took place in...

BUSINESS BRIEFS.(TO THE POINT)
July 1, 2002... TELECOM WorldCom's CEO is "outraged' In a letter to President Bush, John Sidgmore said he was "surprised and outraged" by the telecom's $3.85 bil accounting scandal. Sidgmore was vice chairman before becoming CEO in April. The nearly...

BUSINESS BRIEFS.(TO THE POINT)
July 1, 2002... FINANCE Spitzer eyes investment bankers New York Attorney General Eliot Spitzer's next probe will involve the activities of investment bankers who sold securities that later plunged, a published report said. He'll be focusing on bond...

BUSINESS BRIEFS.(TO THE POINT)
July 1, 2002... MEDICAL Reimbursement fears hit Dianon Dianon skidded 11% and fellow pathology lab firm AmeriPath fell 6% after Charles Schwab said Medicare pathology payments may fall as much as 11% next year under a proposed regulation announced...

THE ECONOMY.(TO THE POINT)
July 1, 2002... U.S. auto sales bouncing back After a surprise May slump, auto sales likely rebounded in June. Analysts think more incentives brought customers into showrooms. If data back that view when they're released Tuesday, that would show Americans...

IN BRIEF.(TO THE POINT)
July 1, 2002... Qwest asked staff to take unpaid leave in Q3 as the telecom tries to cut costs and reduce debt. Alcan rose 3% after the aluminum firm said it sees Q2 profit at the high end of its forecast for 35-45 cents. Campbell Soup will buy Irish...

NATION.(TO THE POINT)
July 1, 2002... Cheney to take reins temporarily President Bush was to undergo a colon check Saturday that requires his sedation. The powers of the presidency were to be transferred, briefly, to Vice President Dick Cheney. Bush said doctors recommended...

WORLD.(TO THE POINT)
July 1, 2002... Pakistan seizes 16 from al-Qaida Authorities said the captured fugitives were believed involved in a recent shootout that killed 10 Pakistani soldiers. The arrests came amid an intensive search in tribal areas on the Afghan border. The...

TRENDS & INNOVATIONS.(TO THE POINT)
July 1, 2002... CO2 emissions down 1.1% in '01 Carbon dioxide emissions, linked to global warming, declined for the first time since '91, the previous recession year, the Energy Information Administration said. The EIA cited a manufacturing slowdown and...

TRENDS & INNOVATIONS.(TO THE POINT)
July 1, 2002... People with strong spiritual beliefs appear to recover from the death of a close friend or relative more quickly and completely than do nonbelievers, a study in the British Medical Journal found. Keyhole surgery, or lapraroscopy-assisted...

LEARN TO ANALYZE DETAILS Uncommon Denominators.(LEADERS & SUCCESS)(IBD'S 10 SECRETS TO SUCCESS)
July 1, 2002... Byline: Robin Grugal 6 There's a certain amount of lift that comes from being in a highflying industry. But it's certainly not a prerequisite for greatness. Some of the best companies in history have produced spectacular returns in...

Picasso Didn't Live A Still Life Power Of Innovation: Artist's questing spirit colored canvas of contemporary art.(LEADERS & SUCCESS)
July 1, 2002... Byline: JOSEPH GUINTO Paris was freezing in the winter of 1901, and Pablo Picasso needed to find someplace warm. Just starting as a professional painter, he didn't have the money to rent a well-heated apartment. But Picasso (1881-1973)...

Picasso At A Glance.(LEADERS & SUCCESS)
July 1, 2002... Picasso At A Glance Born: 1881 in Malaga, Spain. Died: 1973 in Mougins, France. Education: Attended the Academy at Barcelona, Spain. Achievements: Considered by modern critics to be the most influential artist of the 20th...

Economic Value Added System Keeps Some Managers Focused Boosters say the system aligns managers' goals with the shareholders'.(LEADERS & SUCCESS)(MANAGING A SUCCESSFUL COMPANY)
July 1, 2002... Byline: CHRISTINA WISE Investors sifting through the rubble of the 1990s market bubble are demanding more from their stocks these days -- mainly real profits. Not the sort spawned by accounting gimmicks, but solid, tried and true profits....

Soldiers Fight Their Way Through ICT's Cyber-Realistic Scenarios Joint Project Of Army And USC Hollywood screenwriters develop virtual characters that respond to questions.(INTERNET & TECHNOLOGY)
July 1, 2002... Byline: KATHARINE STALTER A soldier arrives at the scene of an accident: A child has been hit by a military Humvee. "My son needs help," says the child's mother. "How many people are hurt?" asks the soldier. "The boy and one...

Sales Of IBM "Baby' Mainframes Healthy Despite Slow Tech Spending.(INTERNET & TECHNOLOGY)(Q & A)
July 1, 2002... Byline: DOUG TSURUOKA Not all the news from IBM these days is bad. Big Blue faces slow sales in key areas like disk drives and chips. But that's not true across the board. Take IBM Corp.'s z800 "baby" mainframe. IBM recently...

Record Companies Finally Find Harmony On The Net Five Music Firms On One Site Listen.com breaks ground by signing contract to sell Vivendi's Universal music.(A)
July 1, 2002... Byline: PETE BARLAS Listen.com Inc. is set to become the best-stocked online music store. On Monday, the company says, it will start selling music in digital form over the Web from Vivendi Universal's Universal Music Group. By...

Domain Name Game Tough To Follow Registrars Hound Users VeriSign rivals accusing company of deception in sending renewal notes.(INTERNET & TECHNOLOGY)(COMPUTERS MADE PLAIN)
July 1, 2002... Byline: MICHAEL KREY What's in a Web name? Some pain, it seems. Yes, it's great to have domain names -- the www.whatever.coms and .orgs that firms and people use to stake their claim on the World Wide Web. But staking and keeping that...

AFC ENTERPRISES INC. Atlanta, Georgia It's Not Too Chicken To Diversify Holdings.(THE NEW AMERICA)
July 1, 2002... Byline: MARILYN MUCH It's no secret that fast-food operators have to offer more than the usual fare to stay competitive. That's why Frank Belatti is open to adding new brands to his company's plate. Belatti is chief executive of...

NATIONAL MEDICAL HEALTH CARD SYSTEMS INC. Port Washington, New York Drug Benefit Manager: Size Doesn't Matter.(THE NEW AMERICA)
July 1, 2002... Byline: MARILYN ALVA When it comes to managing prescription drug costs for clients, National Medical Health Card Systems Inc. is a tiny blip on the radar screen. The pharmacy benefit manager, or PBM, boasts 2.5 million members. That's...

KEY FUND HOLDINGS.(MUTUAL FUNDS)
July 1, 2002... Key Fund Holdings / Ohio Casualty was a top buy of Fidelity Select Insurance Fund in its latest reporting period. The stock is 7% off the 22.24 high it hit May 28, when it began its base. Earnings rose 17% and 200% in the past two quarters. ...

Stock Fund Inflow Slowed During May Market Extended Fall Early estimates for June see $19.7 billion outflow; bonds taking up slack.(A)
July 1, 2002... Byline: DAN MOREAU Investors slowed purchases of stock funds in May, and apparently turned net sellers in June as the market's slump deepened. Investors likely pulled $19.7 billion in June as stocks crumbled, TrimTabs.com estimated....

Simon Should Say . . .(ISSUES & INSIGHTS)(EDITORIALS)
July 1, 2002... Business: Here's some news for California voters: Enron et al. didn't cause all your problems, and the public sector isn't your only friend. Gray Davis may not be a good governor, but he's a lucky one. Having bungled an epic energy crisis...

The Trouble With Al.(ISSUES & INSIGHTS)(EDITORIALS)
July 1, 2002... Politics: We were going to hold our tongue on who, if anyone, in Washington shares blame for the corporate scandals eroding Americans' faith in financial markets. But Al Gore's comments on Friday caused us to let go. We've noted often...

FACT BOX.(ISSUES & INSIGHTS)
July 1, 2002... ON THIS DAY In 1953, Washington reported its largest peacetime deficit: $9.4 billion. In 1963, the U.S. postmaster inaugurated the ZIP code. In 1988, Iraq's foreign minister publicly admitted that his country's planes dropped...

LETTERS.(ISSUES & INSIGHTS)
July 1, 2002... Government's Criminals "Go Directly To Jail" (Editorial, Thursday) is too late. When the Clintons escaped punishment for their contempt for law, it left the door open for what we see today. Yes, these CEOs and their cohorts should go...

Lay Down The Cornerstone: Give Parents School Choice.(ISSUES & INSIGHTS)(BRAIN TRUST)
July 1, 2002... Byline: SALLY PIPES The U.S. Supreme Court has ruled that a school-choice plan in Cleveland constitutes true private choice, not state furtherance of religion, and is therefore constitutional. Thursday's 5-4 ruling is a victory for all...

THE REAL MOST ACTIVE NYSE Indexes Close Quarter With Losses.(MAKING MONEY)
July 1, 2002... Byline: CRAIG SHAW NYSE stocks ended a dismal quarter on a sour note Friday, with the Dow industrials falling 0.3% on heavier volume and the S&P 500 down 0.1%. For the week, the Dow lost 0.2% and the S&P gained 0.03%. Allegheny Energy...

Accessories Retailer Sees Growth In Japan.(B)(NYSE STOCKS IN THE NEWS)
July 1, 2002... Byline: Craig Shaw Coach is working on a six-week consolidation after running up 74% from its December breakout. It's corrected 22% from its May 15 peak and now stands 8% off that high. The New York-based retailer designs, produces and...

THE REAL MOST ACTIVE New Issues Rack Up Gains On Quarter's End.(B)
July 1, 2002... Byline: DAVID SAITO-CHUNG The Nasdaq closed up just 0.3% on faster trade Friday after rising as much as 1.9% intraday. The tech-rich index still finished lower for a third straight week. A few recent health care IPOs continued to...

Video Rental Chain Gets Big In Tiny Towns.(B)(NASDAQ STOCKS IN THE NEWS)
July 1, 2002... Byline: David Saito-Chung Movie Gallery had a fabulous 2001, jumping to $10 a share in early May 2001 and rising as high as 30.24 in early December after a 3-for-2 stock split. The stock split 3-for-2 again in January. It now has a float...

NO TIME, NO PROBLEM.(THE SMART INVESTOR)
July 1, 2002... In just 15 minutes a day, IBD keeps you on top of the market. Scan Internet & Technology and The New America for promising companies. Then turn to the NYSE and Nasdaq Where The Big Money's Flowing. Focus on the boldfaced market-leading stocks....

Sound Investing System Keeps You In Winners.(THE SMART INVESTOR)(IBD INVESTOR PROFILE)
July 1, 2002... Byline: MURRAY COLEMAN He started slowly, investing small amounts a little at a time. Two decades later, Isaac Cain has turned a casual interest in stocks into financial independence. Three years ago, the La Mesa, Calif., investor...

Ascending Base Formations Are Rare, But Pack A Punch.(THE SMART INVESTOR)(WINNING WAYS)
July 1, 2002... Byline: KEN HOOVER Ascending bases show up on the road from a stock's breakout to the top. They are an intermediate formation and a good chance to get in if you missed the stock when it first broke out. They're also a good chance to add to...

In Any Market, Employ A Sound Win-Loss Ratio.(A)(INVESTOR'S CORNER)
July 2, 2002... Byline: JONAH KERI If you nailed one of history's greatest stock winners at the start of a long run, give yourself a hand. You know by now that one Home Depot or Microsoft can make a portfolio sing for years. In a healthy market, a...

Recovery Still On Track As Manufacturers Post Their Fifth Straight Gain Construction Spending Slips Factory job losses may be bottoming out, a hopeful sign for other sectors, too.(A)
July 2, 2002... Byline: CHRISTINA WISE The manufacturing sector turned in a fifth straight month of growth in June, raising hopes that the weakest job sector may be firming. The Institute for Supply Management's production managers index, released...

Wintel Partners Microsoft, Intel See "Post-PC' Era Fates Diverge Chipmaker Founders.(A)
July 2, 2002... Byline: JED GRAHAM As goes Intel, so goes Microsoft, and vice versa. That's been conventional wisdom since the two companies combined to put the Wintel stranglehold on the PC industry. But it's no longer true. That's never been more...

IBD'S TOP 10.(A)
July 2, 2002... WorldCom's Mess Slams Stocks 1The Nasdaq dropped 4.1%, posting its worst close since June 10, 1997. The index is down 28% for the year. Volume surged mainly due to the 1.5 bil shares traded in WorldCom alone. Nasdaq-listed medical,...

AFTER THE CLOSE.(TO THE POINT)
July 2, 2002... TYCO sold 200 mil shares of its CIT finance arm at $23 a pop, below the IPO's expected price range of $25-$29. SOUTHWEST AIR mechanics asked a federal mediator to help resolve contract talks with the low-cost airline. THQ will take a...

BUSINESS BRIEFS.(TO THE POINT)
July 2, 2002... TECHNOLOGY EDS falling on WorldCom woes Electronic Data Systems dived 6.70, or 18%, to 30.45, its lowest close since Oct. '97. It said client WorldCom's woes will hurt profit by 4 cents a share in Q3 and Q4. The Navy won't order more...

BUSINESS BRIEFS.(TO THE POINT)
July 2, 2002... DEFENSE TRW OKs Northrop's $7.8 bil bid Defense firm Northrop Grumman will buy defense and auto parts firm TRW. It sweetened the offer several times. The deal helps Northrop in satellite communications and missile systems. Northrop...

BUSINESS BRIEFS.(TO THE POINT)
July 2, 2002... MEDICAL Drug makers sue to block plan The drug industry sued to block a Michigan program that urges doctors to prescribe medicines on only a preferred drug list, an industry group said. PHRMA said the program restricts patients from...

BUSINESS BRIEFS.(TO THE POINT)
July 2, 2002... MEDIA Vivendi up as Messier seen out Embattled CEO and Chairman Jean-Marie Messier reportedly quit the debt-laden French-U.S. media and utility giant. Jean-Rene Fortou, vice chairman of French drug maker Aventis, is seen as his...

THE ECONOMY.(TO THE POINT)
July 2, 2002... Chicago Fed national index rises The Chicago Fed's National Activity Index rose to -0.07 in May from -0.28 in April. A below-zero reading means the economy is growing below historical trends. That's been the case in 22 of the past 23...

IN BRIEF.(TO THE POINT)
July 2, 2002... Advent Software said sales for the just-ended Q2 would fall well short of prior estimates, citing the weak economy and a delay in closing an acquisition. After being halted, the financial software firm traded near 17.25 after hours, 33% below...

NATION.(TO THE POINT)
July 2, 2002... Okla.'s Watts won't run in Nov. Rep. J.C. Watts, the highest-ranking black Republican ever in Congress, said he won't run for re-election. He was No. 4 in the House GOP hierarchy. Earlier, he considered running for the No. 2 spot behind...

WORLD.(TO THE POINT)
July 2, 2002... Ex-Mexican official turns self in The ex-director of Mexico's state oil company surrendered to U.S. authorities in Houston on charges surrounding one of Mexico's biggest political corruption scandals. Mexico charges Rogelio Montemayor and...

TRENDS & INNOVATIONS.(TO THE POINT)
July 2, 2002... Egg freezing may soon be option As more women delay motherhood, some fertility doctors are offering the option to "bank" eggs before age-related deterioration, a method long used with sperm. But critics say freezing of delicate,...

TRENDS & INNOVATIONS.(TO THE POINT)
July 2, 2002... World Health Organization chief Gro Harlem Brundtland warned parents about their children's use of mobile phones. She doesn't own a cell phone and forbids anyone to use one in her Geneva office. She says the electromagnetic waves give her a...

FOCUS YOUR TIME AND MONEY Don't Chase Weak Leads.(LEADERS & SUCCESS)(IBD'S 10 SECRETS TO SUCCESS)
July 2, 2002... Byline: Robin Grugal 7 If you're in the position of having to bring in new business, you might be feeling desperate right about now. But don't get teased into chasing leads that hold little or no potential. This is no time to be wasting...

Harriman At A Glance.(LEADERS & SUCCESS)
July 2, 2002... Harriman At A Glance Born: 1848 in Hempstead, N.Y. Died: 1909 near Turner, N.Y. Education: Dropped out of school at age 14. Achievements: Revived financially troubled Union Pacific and turned it into a model of...

Banker Worked The Railroad Synonym For Success: Harriman's hands-on approach modernized Union Pacific.(LEADERS & SUCCESS)
July 2, 2002... Byline: MICHAEL MINK Where others saw Union Pacific as an average railroad with a financially troubled past, Edward Henry Harriman saw opportunity. Running from the Missouri River to the Pacific Northwest, Union Pacific was emerging...

TECHBITS.(INTERNET & TECHNOLOGY)
July 2, 2002... Byline: Doug Tsuruoka and Donna Howell Independence Day, FBI Style The FBI will be hauling out its best anti-terror tech to deal with possible attacks during the Fourth of July holiday, law enforcement sources say. The technology...

Netflix Is Moving To Get Big Fast More Overnight Service Firm's aiming for profit and a million subscribers in second quarter of '03.(INTERNET & TECHNOLOGY)
July 2, 2002... Byline: PATRICK SEITZ Netflix Inc., which rents out digital video discs via the Internet, hopes to turn regional success into a national phenomenon. With a network of distribution centers, it's offering overnight delivery of DVD movies...

RealNetworks Offers Subscriptions For Online Games.(INTERNET & TECHNOLOGY)
July 2, 2002... Byline: PETE BARLAS RealNetworks Inc. is searching for a winning game plan. On Monday, the audio and video software company launched its first online game subscription service to help boost sagging revenue. The move is another...

After Five Strong Years, DVD Still Growing Fast As It Goes Mainstream New Features Will Drive Sales When DVD was rolled out, some analysts said appeal was limited to small group.(INTERNET & TECHNOLOGY)
July 2, 2002... Byline: PATRICK SEITZ The huge success of the digital video disc has boosted Hollywood studios, consumer electronics makers and retailers. The growth of DVD should continue because much of the market has yet to be tapped, say people in the...

Flare-Up Between India And Pakistan Puts Damper On Infosys' Business.(INTERNET & TECHNOLOGY)(Q & A)
July 2, 2002... Byline: J. BONASIA The unrest between India and Pakistan has dampened the fortunes of Infosys Technologies Ltd. and the Indian tech sector in general. Shares of Infosys, one of the largest tech firms based in India, have fallen nearly a...

YANKEE CANDLE CO. South Deerfield, Mass. "Home Store' Concept Might Light Up Sales The Aim: More Traffic Candle maker expects new goods to lure more customers through doors.(THE NEW AMERICA)
July 2, 2002... Byline: KIRK SHINKLE At its flagship store in South Deerfield, Mass., Yankee Candle Co. hawks somewhere near 90,000 square feet of wax and wicks. But inside the store, the firm is trying out a few new ideas that could hasten its...

UNIVERSAL HEALTH SERVICES INC. King of Prussia, Pennsylvania Buys Keep Hospital Operator In Good Health.(THE NEW AMERICA)
July 2, 2002... Byline: MARILYN MUCH Talk about shopping sprees. Since August 2000, Universal Health Services Inc. has made 23 acquisitions that added a combined $435 million in annual revenue at the time of purchase. Normally, 23 acquisitions in...

KEY FUND HOLDINGS.(MUTUAL FUNDS)
July 2, 2002... Key Fund Holdings / Boyd Gaming was a top holding of Northern Small Cap Value Fund in its latest reporting period. The company's results swung from a loss to a profit in the fourth quarter and jumped 150% in the first quarter. The stock has...

WorldCom: Small Part Of Many Funds 773 Funds Held Shares Stock price plunge cut size of funds' positions before reports of fraud.(MUTUAL FUNDS)
July 2, 2002... Byline: CLAIRE MENCKE If you're concerned that WorldCom stock is among your diversified mutual fund's holdings, you should be. It's probably there. WorldCom was sued by the Securities and Exchange Commission for fraud last week. ...

Now In Session.(ISSUES & INSIGHTS)(EDITORIALS)
July 2, 2002... Sovereignty: The International Criminal Court opened for business Monday, much to the satisfaction of human rights activists -- and the disapproval of the U.S. Seventy-four countries have signed on to a world court that will prosecute...

Slow Motion.(ISSUES & INSIGHTS)(EDITORIALS)
July 2, 2002... Transportation: What this country needs is a few more roads. More pavement won't bring quick relief to every commuter, but it's better than none at all. None at all, though, is what rush-hour motorists tend to get when it comes to relief....

LETTERS.(ISSUES & INSIGHTS)
July 2, 2002... Pledge Peer Pressure Regarding "Court Throws Out Pledge, By God" (IBD's Top 10, Thursday), it is rather strange to me that the Pledge of Allegiance seems to be solely performed by children who are far too young to understand its meaning....

Bush's Talk On Middle East Speaks To The Hard-Liners.(ISSUES & INSIGHTS)(NATIONAL ISSUE)
July 2, 2002... Byline: BRIAN MITCHELL President Bush has a vision: "Two states, living side by side, in peace and security." To both sides in the Middle East, Bush's vision looks more like the handwriting on the wall. It reads: "The intifada is over....

THE REAL MOST ACTIVE Techs Send Dow, S&P 500 For Loop.(MAKING MONEY)
July 2, 2002... Byline: JONAH KERI & CRAIG SHAW NYSE stocks couldn't stop the bleeding Monday, giving more ground in another gloomy session. The Dow fell 1.4%, the S&P 500 2.1%. The S&P 600 small-cap index, a pocket of market resilience in recent months,...

D.R. Horton: Latest Builder Building Base.(B)(NYSE STOCKS IN THE NEWS)
July 2, 2002... Byline: Jonah Keri Of the 197 industries tracked by IBD, only a handful have climbed steadily throughout most of the 18-month bear market, on into mid-2002. One of those select few? Home builders, ranked third among IBD groups. D.R....

THE REAL MOST ACTIVE Nasdaq Hits 5-Yr Closing Low; Medicals Swoon.(B)
July 2, 2002... Byline: CRAIG SHAW The Nasdaq composite limped to a 4.1% loss on massive trade Monday, its lowest close in five years, as technology shares slumped on worries about corporate accountability. Medical stocks tumbled. Dianon Systems...

For-Profit School Firm Outperforms Indexes.(B)(NASDAQ STOCKS IN THE NEWS)
July 2, 2002... Byline: Craig Shaw Apollo Group has steadily advanced the past two years as the market indexes declined. It's shaping what is now a nine-week consolidation. Its Relative Strength line is in new high ground, a bullish sign. The largest...

Invest In Stocks Having Big Growth, Not A Story.(A)(INVESTOR'S CORNER)
July 3, 2002... Byline: DAVID SAITO-CHUNG Would you buy shares in a firm that made medicine by extracting lymph from cows? How about a lab firm that said its papaya juice-based product could cure pain from slipped discs? In today's market, of course...

Leading Groups Buckle And A '98 Low Pierced In Unremitting Sell-Off Bounce Is Not Guaranteed Talk of a prolonged bear grows louder as distrust and fear grip the market.(A)
July 3, 2002... Byline: JONAH KERI Home builders, hospitals and select retailers joined the ranks of walking wounded Tuesday, denting the market's few remaining pockets of strength. Bargain hunters briefly tried to stem the tide at midday. But...

IBD'S TOP 10.(A)
July 3, 2002... Software, Medicals Lead Sell-Off 1 The Nasdaq, down 4.1% Monday, dropped another 3.3%. Volume declined, but was still heavy. Financial and medical software, chip and ethical drug stocks paced the broad retreat. The S&P 500 slipped 2.1% and...

AFTER THE CLOSE.(TO THE POINT)
July 3, 2002... US AIR and its pilots resumed talks on labor concessions, two days after they broke them off. NEC CORP and IBM Japan will lure corporate customers to return used PCs, and then resell them to tap growing demand for cheaper used models,...

BUSINESS BRIEFS.(TO THE POINT)
July 3, 2002... TRANSPORTATION Travel sectors hit by terror fears Airlines, hotels and casinos all lost ground as investors worried about the possible impact of a July 4 holiday weekend attack. The Sept. 11 attack sent those sectors reeling, with...

BUSINESS BRIEFS.(TO THE POINT)
July 3, 2002... TECHNOLOGY Wall St. bearish on chip sector Morgan Stanley's Steven Pelayo issued a gloomy forecast for the chip gear industry. He sees chipmaker capital spending falling 20% in '02 vs. his old forecast of a 15% drop. Spending will rise...

BUSINESS BRIEFS.(TO THE POINT)
July 3, 2002... MEDICAL First Horizon crashes on warning The drug maker dived 14.74, or 81%, to 3.51 after saying it'll earn nil to 2 cents a share in Q2. That's well below the analyst estimate of 8 cents and last year's 9 cents. First Horizon said...

BUSINESS BRIEFS.(TO THE POINT)
July 3, 2002... FINANCE Merrill may have had Q2 outflow The full-service brokerage's clients may have pulled assets, a Banc of America Securities analyst said. Seasonal weakness and Merrill's conflict-of-interest analyst probe hurt business. Net...

THE ECONOMY.(TO THE POINT)
July 3, 2002... Weekly chain-store sales mixed The Bank of Tokyo-Mitsubishi and UBS Warburg said chain-store sales fell 0.9% last week following three strong weekly readings. Sales rose 3.6% from a year ago vs. 4.9% the prior week. Instinet Research's...

IN BRIEF.(TO THE POINT)
July 3, 2002... Interstate Bakeries' Q4 EPS rose 50% to 45 cents a share, 3 cents over views. Sales rose 2%. California's power-buying agency sued to void a $6.6 bil power contract with Sempra Energy, saying it misrepresented its ability to build new...

NATION.(TO THE POINT)
July 3, 2002... CIA, FBI overhaul seen delayed Congress has decided to put off an overhaul of the FBI and CIA until after it establishes a Cabinet-level Department of Homeland Security, The Washington Post reported. That will likely delay a major revamp...