BUSINESS BRIEFS
Gas returns to $3 per gallon as oil prices swoon
Associated Press
NEW YORK — Gas prices rose back to $3 a gallon at the pump yesterday, after rising futures prices on concerns about tight inventories and potential supply disruptions.
But oil prices fell yesterday, reversing earlier gains after weak figures on new home sales ignited fresh concerns about the economy. That gave traders a green light to lock in profits from oil's recent rally.
Light, sweet crude for February delivery fell 62 cents to settle at $96 a barrel on the New York Mercantile Exchange. Despite yesterday's swoon, oil prices have risen 5 percent in a little more than a week.
Retail gas prices, which typically lag behind the futures market, are widely expected to rise to record highs in the spring. Analysts think futures investors are anticipating big gains by buying now, driving futures — and thus pump prices — higher.
MACY'S CLOSING 9 MAINLAND STORES
CINCINNATI — Macy's Inc. will close nine stores that employ a total of about 900 people, the retailer said yesterday.
In Ohio, Macy's is closing stores in Akron, Canton and North Randall. It is closing a store in Indianapolis, in Oklahoma City and in Lake Charles, La. The remaining three stores are in Dallas, Houston and Riverdale, Utah.
Macy's operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names Macy's and Bloomingdale's.
Macy's shares rose 44 cents, or 1.8 percent, to close at $25.48 yesterday.
ITALIAN MINISTRY BACKS AIRLINE BID
ROME — Italy's economics minister said yesterday he supported Air France-KLM's bid for the troubled national carrier Alitalia and announced the companies would open exclusive talks immediately.
Economics Minister Tommaso Padoa-Schioppa, speaking after a Cabinet meeting, said the talks would last eight weeks and be conducted by the company's management. The Economics Ministry holds a 49.9 percent stake in the airline.
He expects a positive outcome, but added that the situation for Alitalia remains "extremely delicate."
Alitalia shares rose strongly on the announcement, closing up about 8 percent at 0.80 euros ($1.18) at the Milan stock exchange yesterday. Shares in Air France-KLM climbed 1.62 percent to 23.85 euros ($34.82) in trading in Paris.
ASIA MARKETS FALL WITH BHUTTO NEWS
BANGKOK, Thailand — Most Asian markets fell yesterday amid anxiety over the assassination of Pakistani opposition leader Benazir Bhutto and lingering worries about the outlook for the U.S. economy.
Bhutto's death on Thursday, just ahead of Jan. 8 elections, sent shock waves through international markets on worries that global instability may follow, although some analysts said the impact is likely to be limited.
While Pakistan's stock market was closed, the market reaction in neighboring India was muted. Mumbai's Sensex index dipped 9.77 points, or 0.05 percent, to close at 20,206.95.
WAL-MART CLOSES MOVIE WEB STORE
LITTLE ROCK, Ark. — Wal-Mart Stores Inc. has closed an online movie download service it launched less than a year ago.
The retreat for Wal-Mart, which accounts for about 40 percent of all DVD sales, follows the company's 2005 decision to abandon efforts to build an online DVD rental service. The world's largest retailer instead turned its rental service over to Netflix Inc.
Wal-Mart still operates a music download service and continues to sell CDs and DVDs at retail stores and on the Internet for shipping by mail.
A message on Wal-Mart's video download Web site said the store closed Dec. 21. The Web site said customers who have already bought movies could continue to watch them.
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