OIL, CISCO OUTLOOK TRIP MARKETS: Stock prices fell on Wall Street as oil prices rose and a downbeat outlook from Cisco Systems Inc. weighed on technology shares. Cisco reported solid earnings, but Cisco CEO John Chambers said his customers are concerned about the general economy, which may affect their purchasing plans. The Dow Jones Industrial Average closed down 6.35, or 0.1 percent, at 9,938.32. It had fallen more than 100 points early in the session. The Nasdaq fell 26.28, or 1.4 percent, to 1,782.42. The Standard & Poor's 500 index shed 3.25, or 0.3 percent, to 1,075.79.
MOTOROLA MAY OWE IRS $500-MILLION: Motorola Inc. said Wednesday the Internal Revenue Service claims the cell phonemaker may owe $500-million in additional taxes for the years 1996 through 2000. The IRS completed an examination of the company's tax returns from 1996 through 2000 in June and proposed adjustments primarily related to transfer pricing, according to a report filed with the Securities and Exchange Commission. Transfer pricing refers to prices at which individual units within a company sell goods or services to one another. Motorola said it intends to dispute the matter through applicable IRS and judicial procedures.
DANES REJECT KELLOGG FLAKES: Danish health officials said Wednesday they have banned 18 vitamin-enriched products of U.S. breakfast cereal maker Kellogg, saying they could be harmful if eaten regularly. The products, which include enriched versions of brands already on the Danish market such as Corn Flakes, Rice Krispies and Special K, were to be launched in Denmark soon. Paolo Drotsby of the Danish Veterinary and Food Administration said that if eaten regularly, the products could damage children's livers and kidneys, as well as the fetuses of pregnant women. Kellogg said it was puzzled by the rejection, as many of the products are being sold already in several other European countries.
PSC GETS 51 APPLICATIONS: The Florida Public Service Commission nominating council said Wednesday it has received 51 applications to fill the vacancy when PSC Commissioner Lila Jaber, whose term expires in January, steps down. Among the applicants are Beverlee DeMello, assistant director of the PSC's division of regulatory compliance and consumer assistance; Diana Caldwell, staff director of the state Senate committee on communication and public utilities; Beth Keating, a senior PSC staff attorney; and Katrina Tew, chief adviser to PSC Commissioner Charles Davidson.
RENAISSANCE TAMPA OPENS: The 293-room Renaissance Tampa Hotel International Plaza opened for business Wednesday with 114 rooms booked, some just hours before a ribbon-cutting ceremony. The $45-million project is the first Tampa Bay property developed by CNL Hospitality Corp., an Orlando hotel real estate investment trust that owns 134 properties.
CHARGES STAND FOR INK EXPERT: A federal judge declined to throw out perjury charges Wednesday against Larry Stewart, the Secret Service ink expert who testified for the government at the Martha Stewart trial. Judge Denny Chin in Manhattan also refused to move the expert's trial from New York to Washington, where he lives. Larry Stewart, who is not related to Martha Stewart, is accused of lying repeatedly on the witness stand during the trial, mainly by exaggerating his role in ink-analysis testing of a stock worksheet that was used as evidence.
DARDEN CEO TO STEP DOWN: Joe R. Lee, who has led the Darden restaurant chain since 1995, is stepping down as CEO in December and chairman a year later, the company said Wednesday. Lee, 63, was part of the founding management team of the first Red Lobster, which opened in Lakeland in 1968. Replacing Lee will be executive vice president Clarence Otis Jr., 48, who also serves as president of the company's Smokey Bones restaurants. Andrew H. Madsen, 48, will become Darden's president and COO.
19-YEAR-OLD ADMITS SPREADING BUG: A Minnesota high school senior pleaded guilty Wednesday in federal court to unleashing a variant of the Blaster Internet worm, which crippled more than a million computers last summer. Jeffrey Lee Parson, 19, of Hopkins, Minn., is likely to face 18 months to three years behind bars after pleading guilty to one count of intentionally causing or attempting to cause damage to a protected computer. He also could be ordered to pay millions of dollars in restitution, Assistant U.S. Attorney Annette Hayes said.
EEOC SUES CRACKER BARREL: Cracker Barrel Old Country Store Inc., which has restaurants in 41 states, was sued by the federal Equal Employment Opportunity Commission over claims that it discriminated against female and black employees at three Illinois restaurants. The suit, filed in federal court in Chicago, was based on complaints by 10 workers at Cracker Barrel restaurants. The suit claims that women were subjected to sexual assaults, and a black employee suffered disparaging remarks about his race. Cracker Barrel denies that it discriminates against its workers.
EARNINGS
Cisco Systems Inc.: The network equipment maker reported higher profits and sales but expressed a degree of doubt about business in coming months, citing the recent slowdown in the economy. The company's earnings narrowly beat Wall Street's expectations.
Federated Department Stores: Second-quarter profits tumbled 35 percent largely because of the expense of buying back debt while sales rose by 3 percent, the retailer that owns Burdines-Macy's, as well as Bloomingdale's, reported Wednesday. The results fell short of analysts' expectations.
News Corp.: The media conglomerate run by Rupert Murdoch reported an 8 percent increase in earnings for its fiscal fourth quarter Wednesday, thanks in part to growth in its cable TV business and the Fox broadcast network. Earnings per share were a penny above the estimate of analysts surveyed by Thomson First Call.
