NASDAQ LEADS MARKETS UP: The Nasdaq composite index had its first close above 1,900 in 18 months, and the Dow Jones industrials and Standard & Poor's 500 index reached new 15-month highs Thursday as stocks surged on encouraging jobs data and a largely upbeat estimate of future economic activity. The Nasdaq closed up 26.45, or 1.4 percent, at 1,909.55, its best finish since March 11, 2002. The Dow advanced 113.48, or 1.2 percent, to 9,659.13, its first close above 9,600 since June 18, 2002, when the average was at 9,706.12. The S&P 500 index rose 13.61, or 1.3 percent, to 1,039.58, its best finish since June 5, 2002.
LEADING INDICATORS RISE: The Conference Board reported Thursday that its Index of Leading Economic Indicators rose 0.4 percent in August to 113.3, in line with analysts' expectations. The rise in the August reading followed a revised 0.6 percent increase in July. But the improvement in the economic outlook was tempered by stagnation in the board's reading of the current business climate. Analysts said the report points to an economic recovery that continues to strengthen, albeit one where the lack of job creation is a problem.
SOUTHWEST FLIES TO LA: Southwest Airlines will fly nonstop on Saturdays between Tampa and Los Angeles starting Jan. 24. The airline has an introductory fare of $99 one-way available until Jan. 24 for travel through March 6. Song, Delta Air Lines' low-cost carrier, now has the only nonstop flights to Los Angeles from Tampa International Airport. ATA flies nonstop to Los Angeles from St. Petersburg-Clearwater International Airport.
CONTINENTAL CUTS SEATING: Continental Airlines Inc. said it expects to cut seating capacity this year by 2.5 percent. Fourth-quarter capacity, or the number of available seats multiplied by miles flown, is expected to fall 1 percent from the year-ago period, the Houston airline said in a filing with the Securities and Exchange Commission. Chief executive Gordon Bethune said in an interview in August that Continental is deferring plane deliveries because he hasn't seen enough economic growth to justify adding flights.
PRUDENTIAL INVESTIGATORS MULTIPLY: Prudential Financial Inc. confirmed that New York Attorney General Eliot Spitzer, the National Association of Securities Dealers and the Securities and Exchange Commission are investigating the insurer for possible violations in mutual fund trading. The disclosure in a filing with the SEC follows Massachusetts Secretary of State William Galvin's allegations this month that a group of Prudential Securities brokers in Boston regularly traded in and out of mutual funds for quick profits at the expense of long-term investors.
NO BAYCOL CLASS ACTION: A federal judge denied class-action status to several thousand lawsuits against German pharmaceutical maker Bayer over its anticholesterol drug Baycol. U.S. District Judge Michael Davis ruled that the cases were too diverse in issues and medical conditions to qualify as one class of plaintiffs who suffered from the use of Baycol. Bayer faces more than 800 lawsuits in Minnesota and 11,000 lawsuits nationwide by people who used the drug before it was pulled off the market two years ago.
NO 9/11 INSIDER TRADING: U.S. criminal investigators have concluded that there was no insider trading in U.S. securities markets by people with advance knowledge of the Sept. 11 terrorist attacks, an FBI spokesman said. The FBI found that a preattack surge of trading in options that bet on a drop in the stock of AMR Corp., which owns American Airlines, and UAL Corp., which owns United Airlines, was not linked to terrorists, FBI spokesman Paul Bresson said.
UNITEDHEALTH BUYS GOLDEN RULE: UnitedHealth Group, the nation's largest health insurer, will acquire Golden Rule Financial Corp., a company that pioneered medical savings accounts, a Golden Rule official said Thursday. Golden Rule and UnitedHealth have reached "a firm agreement" subject to review by several regulatory agencies, said Mike Corne, Golden Rule's vice president of health products. Golden Rule executives told the company's 1,100 employees about the merger Wednesday, Corne said. He declined to discuss the price or other terms of the deal.
ENRON REVISES REORGANIZATION: Enron Corp. filed a revised reorganization plan Thursday, boosting the amount most creditors will receive to 16.6 cents to 22.5 cents on the dollar and lowering to $63.6-billion its estimate of what it owes them. The energy company also offered financial projections for three businesses likely to emerge from its scandal-ridden bankruptcy. The plan says payments to creditors will be two-thirds in cash and the rest in stock in the new companies.
EARNINGS
Carnival Corp.: The world's largest cruise company, based in Miami, said Thursday its third-quarter earnings jumped almost 50 percent, mainly because of its merger with P&O Princess Cruises but also because of a rebound in passenger booking after the end of the war in Iraq. Carnival beat the consensus earnings forecast of 88 cents a share of Wall Street analysts surveyed by Thomson First Call.
Nike Inc.: The Beaverton, Ore., athletic shoe and clothing maker reported a $261-million first quarter profit Thursday, aided by more expensive shoe prices and favorable foreign currency exchange rates. The profit, equal to 98 cents per share, was a dime per share better than analysts' consensus forecast, according to Thomson First Call.
