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MANUFACTURING RISES: Manufacturing activity rose in August for the 15th consecutive month, but at a slower rate than in July, according to a monthly report released Wednesday by the Institute for Supply Management, a research group. The ISM's index for manufacturing activity stood at 59 in August, three points below the 62 recorded in July and just below the level analysts were expecting. Nonetheless, the survey, together with a separate report on construction spending, painted a positive picture for the economy overall and suggested that the economic expansion remained on solid footing.
CONSTRUCTION SPENDING UP: The Commerce Department reported Wednesday that construction spending bounced back in July to the highest level on record. After a lull in June, the spike in July meant that the value of buildings put in place came in at a seasonally adjusted annual rate of $997.2-billion, an all-time high level and a 0.4 percent increase over June. The gains were broadly based, with spending by private builders on residential units and spending by government on big public works projects hitting all-time highs in dollar terms.
MICROSOFT OPENS MUSIC STORE TODAY: When Microsoft Corp.'s online music service launches with a U.S. test version today, songs will cost 99 cents, the same as Apple Computer's iTunes. The catalog will initially include about 500,000 songs, but the company plans to scale up to more than 1-million songs over the next few weeks, matching the volume available to Apple users. Microsoft claims its service will have a different look and feel from iTunes, and says a main selling point is that is that songs can be played on more than 70 handheld devices that support its Windows Media format. Microsoft is launching a new version of its Windows Media Player along with the music service.
SENDTEC SOLD: SendTec Inc., an Internet direct marketing company based in St. Petersburg, is being acquired by theglobe.com of Fort Lauderdale in a $22-million deal, the companies said Wednesday. SendTec will keep its name and St. Petersburg base, operating as a wholly owned subsidiary. Since its creation in 1996, SendTec has grown into a major player in direct response marketing on the Internet with a client list that includes Intuit, Euro-Pro and General Electric. During the first half of 2004, it earned pretax income of $1.9-million on revenues of $17.6-million. It anticipates full-year revenues between $35-million and $40-million with pretax profits between $3.5-million and $4-million. As part of the deal, theglobe.com is paying $6-million in cash and issuing 17.5-million common shares, 175,000 shares of preferred stock and a $1-million promissory note. Paul Soltoff, SendTec chairman and CEO, will join theglobe.com's board.
O.J. PRICES HIGHER: Wholesale orange-juice prices rose close to an 11-month high on concerns that the second hurricane in less than a month would damage Florida citrus groves this weekend. Orange-juice futures for November delivery rose 4.3 cents, or 5.8 percent, to 78.8 cents a pound on the New York Board of Trade. Prices surged 18 percent in the week ended Aug. 20 after Hurricane Charley hit Florida's west coast.