Chip Stocks Down With Broader Market As General Electric 1st Quarter Disappoints Wall Street

NEW YORK (AP) -- Shares of major semiconductor companies fell Friday, as disappointing first-quarter results from General Electric spooked investors and sent the broader market lower.

Here's how the major chip companies fared in Friday morning trading:

Intel Corp., down 37 cents to $21.71

Texas Instruments Inc., down 35 cents to $29.72

Qualcomm Inc., down 66 cents to $41.92

Advanced Micro Devices Inc., down 4 cents to $6.23

Machinery Stocks Fall Along With Broader Market on Economy Worries After GE Report

NEW YORK (AP) -- Shares of machinery companies fell early Friday along with the overall market after a disappointing first-quarter report from General Electric stoked concern about the health of corporate profits and the wider economy.

How some machinery stocks were doing in early trading:

Manitowoc Co., down $1, or 2.4 percent, to $41.

Terex Corp., down $1.32, or 2 percent, to $65.42.

Cummins Inc., down $1.33, or 2.6 percent, to $49.18.

Caterpillar Inc., down 81 cents to $74.90.

Deere & Co., down $1.06 to $85.85.

Earnings Roundup: GE Reports Disappointing Profit, Forecast; Fastenal Earnings Rise

Among the earnings stories for Thursday, April 10, from AP Financial News:

Top stories:

HARTFORD, Conn. (AP) -- General Electric Co. reported a smaller-than-expected first-quarter profit on Friday and lowered its outlook for the full year, as a slowing U.S. economy sapped its financial services business. Its shares tumbled almost 12 percent in morning trading

Other stories:

WINONA, Minn. (AP) -- Fastenal Co. said Friday its first-quarter profit rose 26 percent as the maker of nuts, bolts, studs and other supplies boosted margins and found ways to limit damage from higher fuel prices.

SEOUL, South Korea (AP) -- Posco, the world's fourth-largest steelmaker, said Friday that its first-quarter net profit rose 5 percent on better sales and cost-cutting.

Atlas Air to Pay $95,000 to Settle Maintenance Complaint With FAA

PURCHASE, N.Y. (AP) -- Air freight company Atlas Air Worldwide Holdings Inc. said Friday that its Atlas Air Inc. subsidiary will pay $95,000 as part of a settlement with the Federal Aviation Administration related to a maintenance issue.

The May 2006 issue involves a single weld to an engine exhaust nozzle on one of Atlas's 747-200 Freighter aircraft, Atlas Air said.

Atlas said it is not admitting or denying any violation of FAA maintenance requirements. The terms of the settlement have been submitted to the federal court for its approval.

Atlas Air shares rose 11 cents to $58.62 in early trading.

Boyd Forms Joint Venture With Olympia Group Affiliate for Proposed Nevada Project

LAS VEGAS (AP) -- Boyd Gaming Corp. said Friday it formed a joint venture with an Olympia Group affiliate for a proposed casino resort complex in Nevada.

Boyd and Olympia Gaming said they filed an application with the City of North Las Vegas to develop a 66-acre, mixed-used regional entertainment facility.

Boyd, a casino operator, will be responsible for the complex's construction and management. Other details of the deal were not disclosed. If the proposed plans are approved, Boyd said it will work on the joint venture project instead of another 40-acre parcel it has in the same region.

Shares of Boyd Gaming dropped 46 cents, or 2.4 percent, to $19.03 in morning trading. The stock has traded in a 52-week range of $18.27 to $54.22.

Harbert Management Raises Passive Stake in Ashland Inc. to 11.4 Percent From 9.9 Percent

NEW YORK (AP) -- Harbert Management Corp. on Thursday reported increasing its passive stake in chemical company Ashland Inc. to 11.4 percent, in a filing with the Securities and Exchange Commission.

The investment manager and its affiliated funds, including Harbinger Capital Partners Master Fund I Ltd., now own 7.1 million shares.

Harbert previously reported owning about 6.3 million shares, representing a 9.9 percent stake in the Covington, Ky.-based company.

Harbert reported its holdings in an amended Schedule 13G filing, which indicates the investment is passive, and that the shares weren't acquired to change or influence control of the company.

Ashland shares fell 32 cents to $50.85 in morning trading Friday.

Shares of Household-Durable Goods Makers Fall As GE's Report Spreads Unease Through Street

NEW YORK (AP) -- Shares of makers of household-durable goods dropped Friday morning as Wall Street worried disappointing earnings and outlook from General Electric may portend more bad news for the economy.

How some shares of household-durables companies are trading:

Black & Decker Corp., down 94 cents to $66.49.

Whirlpool Corp., down $3.16, or 3.7 percent, to $82.05.

Snap-on Inc., down $1.30, or 2.5 percent, to $50.68.

Stanley Works, down 90 cents to $48.45.

Construction and Engineering Companies Sink As Markets Fall on Lower 1Q Results From GE

NEW YORK (AP) -- Shares of construction and engineering companies opened lower on Friday as the broader markets dipped after General Electric Co. reported first-quarter profit that was lower than analysts expected.

Here's how some construction and engineering companies fared Friday morning:

Layne Inc., down $1.04, or 2.4 percent, to $42.27

Mastec Inc., down 5 cents to $8.33

Granite Construction Inc., down 95 cents, or 2.8 percent, to $32.84

Astec Industries Inc., down $1.33, or 3.4 percent, to $37.38

Specialty Retail Shares Fell on GE Results, Consumer Confidence Reading

NEW YORK (AP) -- Shares of specialty retailers fell Friday after General Electric reported a disappointing first quarter, prompting concerns about the health of the economy.

Consumer sentiment also fell again in April, adding to reports showing confidence in the economy is at new lows.

Here is a look at how some specialty retailers' stocks were trading:

OfficeMax Inc. fell 52 cents to $19.36.

Lowe's Cos. dipped 49 cents to $24.04.

Gap Inc. slipped 43 cents to $18.04.

TJX Cos. dropped 42 cents to $30.46.

Outlook Roundup: ConAgra Backs Guidance, Foundry Networks Sees Profit Well Below St. Estimates

Among the earnings projection stories for Friday, April 11, from AP Financial News:

NEW YORK (AP) -- Packaged foods maker ConAgra Foods Inc. said Friday it still expects earnings to grow 8 percent to 10 percent in the near term, and reaffirmed its guidance for fiscal 2008.

SANTA CLARA, Calif. (AP) -- Shares in Internet provider Foundry Networks Inc. plunged in premarket trading Friday, after it said it expects a profit well below Wall Street expectations because of a drop in orders.

Staffing Stocks Decline and Follow Broader Market Lower on General Electric Report

NEW YORK (AP) -- Shares of staffing companies declined in morning trading Friday, following Wall Street lower on General Electric's disappointing first-quarter report.

A weaker-than-expected consumer confidence report reading also unnerved investors.

In the staffing sector, Lehman Brothers analyst Gary Bisbee trimmed his price target on Manpower Inc. on a softening jobs outlook.

Here is how some key staffing stocks did Friday:

On Assignment Inc., down 9 cents to $6.99.

Cross Country Healthcare Inc., down 33 cents, or 2.6 percent, to $12.38.

Manpower, down $2.25, or 4 percent, to $54.42.

Korn/Ferry International Inc., down 47 cents, or 2.6 percent, to $17.32.

TrueBlue Inc., down 19 cents to $12.41.

Kelly Services Inc., down 45 cents, or 2.2 percent, to $20.37.

Textron Expects 1st-Qtr Profit to Beat Guidance As Other Units Offset Finance Segment Weakness

PROVIDENCE, R.I. (AP) -- Textron Inc. said Friday that it expects first-quarter earnings to beat previous expectations, as the industrial conglomerate's other businesses more than offset weaker-than-expected finance segment profit.

The news comes after fellow conglomerate General Electric Co. said challenges in its financial-services divisions hurt first-quarter profit, driving the company to lower full-year guidance.

Textron previously predicted first-quarter earnings between 75 cents and 85 cents per share. Analysts surveyed by Thomson Financial forecast first-quarter profit of 83 cents per share.

The company also expects its full-year profit to meet or exceed its previous target of $3.75 to $3.95 per share. Analysts currently expect 2008 earnings of $3.93 per share.

Textron shares gained 24 cents to $57.64 in morning trading.

Premarket Roundup: BlackRock, Abercrombie & Fitch Get Downgraded

Among the premarket stories for Friday, April 11, from AP Financial News:

NEW YORK (AP) -- Goldman Sachs and Wachovia analysts downgraded BlackRock Inc. Friday, saying the investment manager's stock price will not likely be able to sustain its recent growth.

NEW YORK (AP) -- A JPMorgan analyst downgraded shares of teen clothing retailer Abercrombie & Fitch Co., saying performance at established stores is trailing expectations.

NEW YORK (AP) -- A Credit Suisse analyst said stronger-than-expected sales of generic drugs will help Medco Health Solutions, and upgraded the stock to "Outperform" from "Neutral."

NEW YORK (AP) -- A JPMorgan analyst thinks Wright Medical Group will post faster profit and sales growth than larger rivals, and upgraded the orthopedic products maker's stock to "Overweight" from "Neutral."

Insurers Fall As Health Care Providers and Service Companies Slip in Friday Morning Trading

NEW YORK (AP) -- Health care stocks fell with the market in morning trading, with health insurers taking some of the biggest losses.

Disappointing first-quarter results from General Electric Co. weighed on stocks early in Friday's session.

Here are the results from a few key health care providers and service stocks:

Aetna Inc., down 73 cents to $41.40.

Humana Inc. lost 75 cents to $43.43.

UnitedHealth Group Inc. fell 15 cents to $36.45.

AmerisourceBergen Corp., down 37 cents to $39.59.

Telecommunications Equipment Makers Open Lower As Wall Street Retreats

NEW YORK (AP) -- Shares of communications equipment makers opened lower Friday along with the broader market after General Electric's first-quarter results disappointed investors.

Here is how some key telecom equipment stocks performed Friday morning:

Cisco Systems Inc. fell 37 cents to $23.67

Alcatel-Lucent American Depository Shares fell 7 cents to $5.93

Nortel Networks Corp. fell 19 cents, or 2.6 percent, to $7.10

Juniper Networks Inc. fell 61 cents, or 2.6 percent, to $22.70

Premarket Roundup: Millenium Pharma Downgraded; Analyst Says Idacorp Overpriced

Among the premarket stories for Friday, April 11, from AP Financial News:

NEW YORK (AP) -- Friedman, Billings, Ramsey & Co. upgraded Atlas America Inc. Friday, saying the independent energy company is poised to grow due in part to recent developments in the natural gas sector.

NEW YORK (AP) -- A Baird analyst says Takeda Pharmaceuticals' buyout of Millennium Pharmaceuticals will go through, but said Millennium stock is likely to stay near its current price and downgraded its shares.

NEW YORK (AP) -- A group of funds controlled by Mario J. Gabelli have acquired a 7.2 percent stake in Diebold Inc., a manufacturer of ATMs and voting machines, according to a Securities and Exchange Commission filing on Friday.

NEW YORK (AP) -- An analyst downgraded shares of Idacorp Inc. on Friday, saying the power company's shares are overpriced given that its growth is no better than that of its peers.

Premarket Roundup: Genentech Cancer Drug Avastin's Sales Disappoint, Ross Stores Upgraded

Among the premarket stories for Friday, April 11, from AP Financial News:

NEW YORK (AP) -- Analysts are disappointed with sales of Genentech's cancer drug Avastin, as revenue rose only modestly after the drug was approved to treat breast cancer.

NEW YORK (AP) -- A JPMorgan analyst upgraded shares of Ross Stores Inc., saying the discount clothing retailer's stores are beating sales expectations and its low inventories are keeping down costs.

NEW YORK (AP) -- A softening U.S. economy is throttling Harley-Davidson's sales, according to one analyst.

Shares of Commercial Banks Dip As Street Worries on GE's Earnings Miss, Guidance Cut

NEW YORK (AP) -- Commercial bank stocks slid Friday morning after General Electric Co.'s first-quarter profit slid and the conglomerate lowered its full-year outlook, causing worry about corporate earnings and the wider economy.

How some shares of commercial banks are trading:

National City Corp., down 7 cents to $8.84.

Wachovia Corp., down 19 cents to $27.68.

First Horizon National Corp., down 11 cents to $13.19.

Zions Bancorp, down 39 cents to $44.51.

Zoran Corp. Plunges After Jefferies Slashes Rating 2 Notches, Says Sales to Be Weak

NEW YORK (AP) -- Shares of Zoran Corp. plunged after a Jefferies & Co. analyst slashed his rating on the circuit maker, saying new product launches are unlikely to offset weaknesses in DVD and camera technology sales.

Adam Benjamin lowered Zoran to "Underperform" from "Buy" in a client note on Friday. He also cut his price target to $10 from $14.44 and his profit outlook for fiscal 2008 to 69 cents per share from 98 cents.

Analysts polled by Thomson Financial expect, on average, profit of 81 cents per share for fiscal 2008.

Benjamin said sales of the Sunnyvale, Calif., company's DVD and camera technology -- which account for 50 percent of revenue -- are likely to be weaker than investors are anticipating. He also said new products, such its Blu-Ray discs, are unlikely to offset this weakness and won't be realized until late 2009.

Shares of Zoran have lost more than half their value since trading at an annual high of $27.45 in October.

Benjamin estimated that Zoran's first-quarter revenue will be in line with his estimate of $105 million, but said its second-quarter outlook will likely fall below expectations.

"We believe Zoran no longer has a stable DVD (revenue) base to build upon and we are more tempered on its opportunities in Blu-Ray due to likely lower adoption rates and increased competition," Benjamin wrote.

Shares of Zoran lost $1.67, or 11.6 percent, to $12.77 in morning trading.

Telecommunications Service Providers Open Slightly Lower As Wall Street Retreats

NEW YORK (AP) -- Shares of telecommunications service providers opened slightly lower Friday along with the broader market, after General Electric's first-quarter results disappointed investors.

Here is how some key telecom stocks performed Friday morning:

AT&T Inc. fell 38 cents to $37.82.

Sprint Nextel Corp. fell 4 cents to $6.54.

Verizon Communications Inc., fell 13 cents to $35.70.

Qwest Communications International Inc., was unchanged at $4.65.

Utility Company Stocks Decline As Weak First-Quarter GE Report Drags Down Broader Market

NEW YORK (AP) -- Shares of utility companies fell Friday as the Dow Jones industrial average fell on a weak first-quarter report from General Electric Co.

In the first hour of trading, the Dow Jones industrial average slipped 122.13, or 0.97 percent, to 12,459.85.

How some utility company stocks are trading:

FPL Group Inc. is down 26 cents to $64.90.

Pepco Holdings Inc. is down 9 cents to $24.12.

Consolidated Edison Inc. is down 3 cents to $41.09.

Southern Co. is down 8 cents to $36.23.

Aerospace and Defense Stocks Slide As Market Sinks on GE 1st-Quarter Results and Forecast

NEW YORK (AP) -- Shares of aerospace and defense companies are falling in morning trading as General Electric's weak first-quarter results pressured the market.

GE reported less profit and less revenue than analysts expected, and it reduced its full-year profit forecast.

Here are the results from a few key stocks in the sector:

Precision Castparts Corp. shed $3.49, or 3.1 percent, to $110.12.

Honeywell International Inc. fell $1.01 to $57.79.

Goodrich Corp. declined $1.20, or 2 percent, to $58.57.

United Technologies Corp. fell $1.49, or 2.1 percent, to $70.36.

South Korea's Top Court Orders Lower Court to Review Sentence in Hyundai Corruption Case

SEOUL, South Korea (AP) -- South Korea's Supreme Court ordered an appellate court Friday to review its sentence in a corruption case against Hyundai Motor Co. Chairman Chung Mong-koo, who avoided jail last year after receiving a suspended prison term for embezzlement.

In September, the Seoul High Court suspended a three-year prison term for Chung, 70, by a lower court -- while upholding his guilty verdict -- and ordered the tycoon to do public service. That enabled Chung to continue running South Korea's largest automaker without going to jail.

Prosecutors, however, filed an appeal, saying lecture and writing duties ordered as part of Chung's sentence were not proper activities for sentences involving community service.

On Friday, the Supreme Court accepted the prosecutors' argument and sent the case back to the appellate court, said Oh Seok-jung, a spokesman for the Supreme Court.

Oh said the Supreme Court made the judgment only on whether the community service aspect of Chung's sentence was appropriate. He said the lower court should review the whole sentence for Chung because the public service order was made based on the suspended prison term.

That means it is theoretically possible for the lower court to change Chung's sentence and send him to prison. The chance of imprisonment appears low because prosecutors disputed only the community service aspect, not Chung's suspended term.

The Supreme Court spokesman said the case will go back to the Seoul High Court so a new sentence can be issued. It was not decided when the first hearing on the resentencing will be held, he said.

Hyundai Motor expressed disappointment at the decision.

"It is very unfortunate that this court case has still not been finalized, especially at a time we have so many pending business issues at hand," Hyundai spokesman Jake Jang said. "We will review our options after we discuss the court's ruling with our lawyers."

In September, the Seoul High Court suspended Chung's prison term for five years, meaning he would not go to jail if he stays out of trouble during the period. The presiding judge said at the time that Chung was too important for the nation's economy to go to prison.

Hyundai Motor is South Korea's biggest automaker and a key driver of the economy. Hyundai and affiliate Kia Motors Corp. together form the world's sixth-largest automative group.

Chung was also ordered to do public service in the form of delivering lectures and writing newspaper and magazine articles on lawful management, and to fulfill a promise to donate 1 trillion won ($1 billion) of his personal assets to society.

The Supreme Court also said that a financial donation cannot be a form of community service.

Chung was found guilty of charges that he embezzled the equivalent of more than $100 million in company money to set up a slush fund. Prosecutors said much of the fund was used to pay lobbyists to gain government favors and for personal use.

Industry analysts said that while chances appear low a reconsideration of the sentence will land Chung behind bars, the top court's decision has restored an element of uncertainty to Hyundai and Chung, who is known as an aggressively hands-on manager.

"We don't know how long it would go," said Stephen Ahn, an analyst at Woori Investment & Securities in Seoul, referring to how much time the legal process may take. "That means there is some uncertainty on Hyundai Motor's top management."

Investors appeared to shrug off the Supreme Court ruling. Hyundai shares surged 4.7 percent to close at 82,300 won ($84) in trading Friday.

AP Business Writer Kelly Olsen contributed to this report.

Beverage Stocks Fall As Broader Market Pulls Back on Disappointing General Electric Results

NEW YORK (AP) -- Major beverage stocks fell in early trading Friday as the broader market pulled back on disappointing first-quarter results and outlook from General Electric Co., stirring concern that more big businesses will report similar results.

How shares of some major beverage makers performed just after the opening bell:

PepsiCo Inc. shed 37 cents to $71.33.

Molson Coors Brewing Co. slipped 40 cents to $54.25.

Anheuser-Busch Cos. fell 36 cents to $48.15.

Coca-Cola Co. fell 60 cents to $60.73.

Pinnacle Entertainment Declines As Analyst Downgrades on Poor Consumer Spending

NEW YORK (AP) -- Pinnacle Entertainment Inc.'s stock slid Friday after an analyst downgraded the shares and forecast a tough year for U.S. gaming companies as an economic slowdown hits casino operators.

Shares declined 80 cents, or 5.6 percent, to $13.40 in early morning trading.

KeyBanc Capital Markets analyst Dennis Forst downgraded the stock to "Underweight" from "Hold" on lower spending from U.S. consumers. Forst also forecast a first-quarter loss of 5 cents per share.

"We are feeling more and more that 2008 will be a difficult year for U.S. gaming companies, and Pinnacle is no exception," Forst wrote in a client note.

And even though Pinnacle's stock price has declined 39 percent so far this year, Forst expects the stock to underperform the market in the near-term.

Pinnacle owns and operates casinos and Nevada, Louisiana, Indiana, Missouri, Argentina and the Bahamas.

Shares of Health Care IT Firms Mixed Though TriZetto Agrees to $1.4 Billion P-E Deal

NEW YORK (AP) -- Shares of medical software companies traded mostly lower Friday, as shares of Newport Beach, Calif.-based TriZetto Group Inc. surged on the company's $1.4 billion takeover by private equity firm Apax Partners, but GE's disappointing quarterly loss and revised outlook dragged the broader markets downward.

Here's how shares of some health care information technology firms performed shortly after the market's open:

TriZetto shares surged $2.72, or 15.4 percent, to $20.39, and neared it's 52-week high of $20.85 just after the bell.

Eclipsys, which makes software and provides services to manage clinical and financial operations for doctors and hospitals, saw shares dip 36 cents to $18.86.

Shares of Waltham, Mass.-based Phase Forward fell 23 cents to $16.52, while shares of Wilmington, N.C.-based Pharmaceutical Product Development slipped 13 cents to $43.37.

San Francisco-based McKesson Corp., which in addition to being the nation's largest drug distributor also offers software and technical services to health care providers and insurers, saw shares fall 39 cents to $52.33.

Rails and Shippers Fluctuate As Broader Market Falls, Price of Oil Edges Higher

NEW YORK (AP) -- Shares of major railroads and package shippers fluctuated early Friday, as the broader market slipped and the price of oil stepped slightly higher.

Here's how some major players performed Friday:

Union Pacific Corp., up 22 cents to $130.22.

Burlington Northern Santa Fe Corp., up 10 cents to $93.45.

CSX Corp., up 34 cents to $56.90.

FedEx Corp., down 98 cents to $93.36.

United Parcel Service Inc., down 26 cents to $71.07.

Internet Software, Services Stocks Fall With Overall Market After GE Report Disappoints

NEW YORK (AP) -- Internet software and services stocks declined Friday morning along with the broader market after General Electric issued a disappointing first-quarter report that added to investors worries about corporate earnings and the economy.

How key Internet software and services companies performed Friday morning:

Google Inc. fell $6.21 to $462.87.

Yahoo Inc. fell 10 cents to $28.49.

EBay Inc. fell 44 cents to $31.52.

VeriSign Inc. fell 29 cents to $33.95.

Akamai Technologies Inc. fell 71 cents to $30.73.

Computer, Peripheral Stocks Decline With Overall Market After GE's Disappointing Results

NEW YORK (AP) -- Computer and peripheral stocks declined Friday morning along with the broader market after General Electric issued a disappointing first-quarter report that added to investors worries about corporate earnings and the economy.

How some key computer and peripheral companies' shares performed Friday morning:

International Business Machines Corp. fell $1.46 to $117.32.

Hewlett-Packard Co. fell 32 cents to $46.25.

Dell Inc. fell 25 cents to $18.52.

Apple Inc. fell $1.69 to $152.86.

Broadline Retailers Fall As Weak General Electric Earnings Drag on Market

NEW YORK (AP) -- Shares of broadline retailers fell Friday morning as General Electric Co. posted weak first-quarter results, hurt by credit market problems, sparking investor worry.

Meanwhile, a report from RBC Cash Index indicated consumer confidence was at its lowest since the index began in 2002.

How broadline retailers fared in early trading Friday:

Wal-Mart Stores Inc., down 2 cents to $54.64.

Target Corp., down 41 cents to $52.75.

Costco Wholesale Corp., down 57 cents to $65.95.

BJ Wholesale Club, down 24 cents to $36.52.

Diversified Financial-Services Shares Fall After GE's 1st-Quarter Results Worry Investors

NEW YORK (AP) -- Shares of diversified financial-services companies fell Friday morning, as disappointing first-quarter results from General Electric, considered a bellwether of big business, stoked concerns about corporate profits.

How some diversified financial companies' shares were performing Friday morning:

Bank of America Corp. fell 29 cents to $37.40.

JPMorgan Chase & Co. fell 41 cents to $43.45.

CME Group Inc. fell $2.76 to $496.85.

Citigroup fell 14 cents to $23.57.

CIT Group Inc. fell 64 cents, or 5.2 percent, to $11.72.

Shares of Foundry Networks Drop After Guidance Cut; Analyst Lowers Rating, Price Target

NEW YORK (AP) -- Shares of Foundry Networks Inc. are sliding Friday after the Internet switch provider cut its first-quarter outlook, leading an analyst to lower his rating.

The stock fell 33 cents, or 2.9 percent, to $11.26 after the opening bell.

BWS Financial analyst Hamed Khorsand cut his rating to "Sell" from "Buy" after the Santa Clara, Calif., company blamed a weak U.S. economy for a delay in sales.

"We do not expect sales to rebound dramatically in the second quarter," Khorsand said in a note to clients. He cut his price target to $8 from $20, implying he expects the stock to drop about 31 percent over Thursday's $11.59 close.

Competition from Juniper Networks Inc. may keep shares low for the time being, he said.

Biotech Shares Slide After Genentech Shares Were Downgraded in Wake of Earnings Report

NEW YORK (AP) -- Shares of biotechnology companies are trading lower Friday, after Genentech reported lower-than-expected quarterly revenue due to disappointing sales of cancer drug Avastin. Thomas Weisel Partners analyst M. Ian Somaiya downgraded the stock to "Market Weight" from "Overweight," forecasting "tepid growth" until 2009.

Here's how shares of some biotech firms performed shortly after the market's open:

San Francisco-based Genentech Inc. slipped 55 cents to $77.45

Cambridge, Mass.-based Biogen Idec Inc fell $1.43, or 2.2 percent, to $65

Foster City, Calif.-based Gilead Sciences Inc., which has held strong in its sector due to growth in its HIV franchise, saw shares dip $1.08, or 2.1 percent, to $51.01

Thousand Oaks, Calif.-based Amgen Inc. fell 41 cents to $43.57

The sole member of the Amex Biotechnology Index bucking the downward trend was PDL BioPharma Inc., after the Redwood City, Calif.-based company said late Thursday it will spinoff its biotechnology assets into a separate company and pay shareholders a special $4.25 dividend.

Shares spiked $1.82, or 15.5 percent, to $13.53.

Shares of Health Care Equipment, Supply Companies Dip As Broader Market Reacts to GE Results

NEW YORK (AP) -- Shares of health care equipment and supply companies fell early Friday in line with the broader market as investors pulled back after disappointing first-quarter results from General Electric Co.

How shares of some major health care equipment and supply companies fared shortly after the opening bell:

Varian Medical Systems Inc. tumbled $2.87, or 5.7 percent, to $47.44.

Stryker Corp. fell 90 cents to $64.64.

Baxter International Inc. fell 30 cents to $60.40.

Boston Scientific Corp. slipped 7 cents to $13.20.

Red Robin Gourmet Burgers Declines As Analyst Downgrades Stock on Poor US Economy

NEW YORK (AP) -- Shares of Red Robin Gourmet Burgers Inc. declined Friday after an analyst downgraded the casual-dining company on soft consumer spending and a higher stock price.

Shares declined $1.59, or 4 percent, to $38.41.

Wachovia Capital Markets analyst Jeff Omohundro downgraded the stock to "Market Perform" from "Outperform" and said a weak U.S. economy may weigh on more affluent casual-dining customers, Red Robin's target customer base.

Omohundro still likes Red Robin for its national cable advertising program, new restaurant openings and its spring 2008 menu. Also, the analyst pointed out that Red Robin posted better-than-expected fourth-quarter results in February.

Over the past three months, Red Robin shares have gained 39.4 percent.

Sonics' Ownership's E-Mails Seemingly Contradict Message to Stern, Seattle

SEATTLE (AP) -- E-mail messages between SuperSonics owner Clay Bennett and team co-owners appear to show Bennett misled NBA commissioner David Stern on the group's intentions to move the team to Oklahoma City before all avenues for a new arena in Seattle were closed.

The messages have become part of the team's dispute with the city of Seattle over the two years remaining on its KeyArena lease. Bennett is trying to buy out the lease so he can move the Sonics to his hometown for the 2008-09 season. The city claims the team must occupy the arena through 2009-10. The trial is scheduled to begin June 16.

U.S. District Judge Marsha Pechman is scheduled to hear the trial. She declined through a spokeswoman to comment on the e-mail messages, which the city first released to The Seattle Times and then to The Associated Press and others.

The NBA's board of governors are scheduled to vote next week on Bennett's application to relocate the Sonics to Oklahoma.

Pechman ruled in February that as part of the lawsuit's discovery process, the ownership group must give Seattle's lawyers copies of e-mail sent from or to all of its eight board members that could potentially be relevant to the case.

In one of those messages, dated April 17, 2007 -- during a one-year period in which Bennett was professing a "good-faith" effort to get a new arena built that would keep the Sonics in Seattle -- team co-owner Tom Ward wrote to Bennett from Oklahoma City: "Is there any way to move here for next season or are we doomed to have another lame duck season in Seattle?"

Bennett replied: "I am a man possessed! Will do everything we can. Thanks for hanging with me boys. the game is getting started!"

Ward answered back: "That's the spirit!! I am willing to help any way I can to watch ball here next year"

Co-owner Aubrey McClendon then wrote: "me too, thanks, Clay!"

Stern fined McClendon $250,000 last Aug. 23, two weeks after he told an Oklahoma City publication his group didn't buy the Sonics to keep them in Seattle. The comments by McClendon, an Oklahoma City energy tycoon and one of four original partners who bought the Sonics in July 2006 for $350 million, were at odds with Stern's stated hope of keeping the Sonics in Seattle.

Last Aug. 18, days after McClendon's comments were published, Bennett wrote a lengthy e-mail to Stern. It included a fawning section in which Bennett told the commissioner he was "an extraordinarily gifted executive ... with a rare and unique charisma that brings out the best in everyone you touch ... you are just one of my favorite people on earth and I so cherish our relationship Sonics business aside."

Bennett then wrote moving the Sonics to Oklahoma City was not yet being discussed within the ownership group.

"I would never breach your trust," Bennett e-mailed Stern. "As absolutely remarkable as it may seem, Aubrey and I have NEVER discussed moving the team to Oklahoma City, nor have I discussed it with ANY other member of our ownership group. I have been passionately committed to our process in Seattle, and have worked my (tail) off."

Yet on June 5, 2007, Sonics arena consultant Tim Romani e-mailed Bennett and asked that he talk to Oklahoma City manager Jim Couch before Romani was to "engage in earnest negotiations" with Couch.

Couch declined comment Thursday, citing the ongoing legal process and his pending deposition next week. A spokesman for Bennett, Dan Mahoney, also declined comment.

The e-mail messages also include Ward writing McClendon on Aug. 2, 2006, weeks after they purchased the Sonics and pledged they would attempt to keep them in Seattle.

"I don't think you and I really want to own a team there either ... ," Ward wrote to McClendon, in the context of a partner bailing on the transaction.

When asked about the perception Bennett misled Stern last August that Sonics owners had never discussed moving the team to Oklahoma City, league spokesman Tim Frank declined to comment.

Seattle's motion filed Wednesday in the U.S. District Court for the Southern District of New York seeks to enforce the city's subpoena of the financial records for the NBA and all of its teams. The city recently rejected Bennett's group offering $26.5 million to settle the lease dispute and move the team after this season ends Sunday.

Seattle wants access to documents detailing how the league handles the relocation of teams, early termination of leases and what it wrote was "the NBA's direct involvement in the owners' attempts to move the Sonics."

When asked for the league's response to Seattle's subpoena that the NBA open its books, Frank said the league does not comment on pending litigation.

An assistant for Seattle city attorney Tom Carr said Carr was traveling Thursday and would not comment.

AP Basketball Writer Brian Mahoney in New York and AP Sports Writer Jeff Latzke in Oklahoma City contributed to this report.

Rising Dollar, Falling Gold Price Weighs on Shares of Gold-Mining Companies in Early Trading

NEW YORK (AP) -- Shares of gold-mining companies fell Friday shortly after the opening bell as the U.S. dollar rallied against key rivals and the price of the commodity fell.

The dollar rose against the yen in Asia as an upturn in Asian equity markets prodded short-term investors to sell the yen. The greenback also rose against the euro. Gold fell in London to $922.40 per troy ounce, down from $926.50.

How some gold miners are trading Friday morning:

Newmont Mining Corp. is down 54 cents to $46.45.

Barrick Gold Corp. is down 87 cents to $43.15.

Yamana Gold Inc. is down 19 cents to $14.43.

Goldcorp Inc. is down 75 cents to $39.79.

Brazil Judge Bans Sale, Distribution, Promotion of Rockstar Video Game 'Bully'

SAO PAULO, Brazil (AP) -- A judge has suspended the sale of the video game "Bully" in Brazil on the grounds that its content is too violent for young children and teenagers, a prosecutor said Thursday.

Judge Flavio Rabello prohibited the game from being imported, distributed, sold or promoted on Web sites and stores in Latin America's largest nation on Friday, Rio Grande do Sul state prosecutor Alcindo Bastos said, adding that they would have 30 days to comply with the order.

Bastos said the judge found the game was inappropriate for children.

"The aggravating factor is that everything in the game takes place inside a school," Bastos said. "That is not acceptable."

Made by Rockstar Games and mainly distributed in Brazil by JPF Maggazine, the game lets players act out the life of a 15-year-old student and decide how to deal with teachers and cliques at a boarding school.

The request to ban it came from a local youth support center.

Edward Nebb, spokesman for New York-based Take-Two Interactive Software Inc., the parent company of Rockstar, said while the decision will "prevent Brazilian consumers from enjoying 'Bully: Scholarship Edition,' it will not have a material impact on the sales of this popular title."

The game's first edition has sold about 1.5 million copies worldwide.

JPF Maggazine did not immediately comment on the ban.

Bastos said JPF Maggazine was the main importer of the game in Brazil, but it's possible other companies also distribute the game and would need to comply with the order "because our intent is to ban the game, not the distributor."

Rockstar is best known for the popular "Grand Theft Auto" game series, in which players can hijack cars and run down pedestrians. That game has sold 65 million copies in various incarnations. In Rockstar's gory "Manhunt 2," players fight to escape from a psychiatric institution. Last year, the British Board of Film Classification, the country's ratings board, refused to certify the game.

Bully is rated "T" for teenagers age 13 and older in the U.S., not of "M" for mature players 17 and older. It launched in October 2006 in the U.S. for Sony Corp.'s PlayStation 2 gaming console. In March, it became available for Microsoft Corp.'s Xbox 360 and Nintendo Co.'s Wii, according to the Rockstar Web site for the game.

Apparel Makers Decline After Disappointing 1st-Quarter Report From General Electric

NEW YORK (AP) -- Shares of apparel makers are trading lower Friday morning along with the broader market after General Electric Co. provided a disappointing first-quarter report.

Here's how some apparel makers performed shortly after the market's open:

Jones Apparel Group fell 24 cents to $13.20.

Polo Ralph Lauren Corp. dropped 88 cents to $58.84.

VF Corp. slipped 51 cents to $76.04.

Liz Claiborne Inc. fell 9 cents to $17.72.

Prosecutor Says Elderly LA Women Guilty of Insurance Murders, Even if They Only Plotted Them

LOS ANGELES (AP) -- Two elderly women charged with murder for profit stared Thursday at blown-up pictures of the mangled bodies of two homeless men as a prosecutor told jurors the defendants should be convicted of the killings even if they were not at the scene of the crimes.

"If they conspired, it doesn't matter who actually ran over (the victims). They are guilty," Deputy District Attorney Truc Do said in closing arguments.

Olga Rutterschmidt, 75, and Helen Golay, 77, are each charged with two counts of murder and conspiracy to commit murder for financial gain. Both have pleaded not guilty.

Do said the women invested heavily in insurance policies on the lives of Paul Vados and Kenneth McDavid, who were run over by cars in deserted alleys more than five years apart.

"They picked up complete strangers, men they did not love or care for, destitute men, and made them worth millions if dead," Do said.

The prosecutor said the women bought a total of 21 insurance policies worth $4.5 million and collected $2.8 million after paying premiums on term insurance policies that would have lapsed in 10 years if the men did not die. Testimony showed the women were continuing to try to collect more when they were arrested.

In the case of Vados, who was in his 70s, Do said the only kind of policy available was one that would pay in case of accidental death or dismemberment. When he was struck by a car in 1999, the women collected $829,500 on his insurance.

"This was not insurance fraud or a gamble that someone might die of natural causes," the prosecutor said. "It was murder."

Do said the women supported McDavid for two years, paying premiums of $64,000 on 17 insurance policies "on a man they did not know."

"They owned his life, is the way they saw it. ... They weren't going to let him go because he was worth $3.74 million," Do said. She said the women collected $2 million on his policies and were seeking more from insurance companies that balked at paying.

Defense attorneys were to present their closing arguments Friday afternoon. Superior Court Judge David Wesley said the case would probably go to the jury Monday.

Golay's lawyer, Roger Jon Diamond, has suggested his client's daughter was the driver of the car that ran over McDavid in 2005 and that the mother knew nothing about it. The daughter is not charged in the case.

Do said the driver's identity was irrelevant because the defendants bought a car to use as a murder weapon and conspired to kill McDavid.

"These women are guilty of murder whether or not you conclude they were at the crime scene," she said, noting they could be convicted of aiding and abetting as well as conspiracy.

She projected photos of the men's bodies and pointed out injuries she said were atypical of hit-and-run accidents. Both women stared at the pictures without reacting, while the victims' daughters wept softly.

"This was an intentional running over, not a hit-and-run," Do said.

She said the defendants had enticed the two men with offers of friendship and a way out of destitution.

"Mr. Paul Vados thought Olga Rutterschmidt was his only friend," the prosecutor said. "Mr. McDavid thought they were rescuing him from sleeping on the streets. It was inconceivable to these men that these defendants would cross the bounds of human decency to murder them. And it is incredible."

MGIC Investment Paid Its Chief Executive, Curt Culver, $6.3 Million Last Year

NEW YORK (AP) -- MGIC Investment Corp. paid Chief Executive Curt Culver $6.3 million in 2007, a year in which the mortgage insurer lost $1.67 billion.

In a filing Friday with the Securities and Exchange Commission, the Milwaukee-based company said it paid Culver a salary of $821,923, plus a $480,000 bonus and $5 million in stock and options awarded Jan. 24, 2007.

MGIC posted a massive loss last year because the insurer socked money away preparing to pay more claims. MGIC writes insurance policies promising to reimburse mortgage lenders when borrowers default. With borrowers saddled by an uptick in unemployment, a slowing economy and flagging property values, more people are missing payments on loans and the insurer is paying more claims.

MGIC's stock plunged 64 percent in 2007.

Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

ConAgra Reiterates Expected Growth, Reaffirms Fiscal 2008 and 2009 Guidance

NEW YORK (AP) -- Packaged foods maker ConAgra Foods Inc. said Friday it still expects earnings to grow 8 percent to 10 percent in the near term, and reaffirmed its guidance for fiscal 2008.

The owner of brands including Healthy Choice, Chef Boyardee and Peter Pan expects 2008 adjusted earnings between $1.80 and $1.85 per share, compared with the $1.80 per share average estimate of analysts polled by Thomson Financial.

The company forecast fiscal fourth-quarter earnings between 30 cents and 35 cents per share, compared with analysts' projections for profit of 35 cents per share.

ConAgra predicts it will report 2009 adjusted earnings of at least $1.55 per share, while analysts expect profit of $1.53 per share. The company reiterated the guidance ahead of a presentation to investors at a luncheon hosted by Shields & Co. Friday.

Trafficked Myanmar Job Seekers Face Expulsion From Thailand After Truck Ordeal

RANONG, Thailand (AP) -- Dozen of migrants from Myanmar who narrowly escaped suffocation while being smuggled through Thailand in a locked, stifling truck were convicted of illegal entry Friday and will be sent home, authorities said Friday.

Fifty-four migrants died in the tiny truck headed for the resort town of Phuket after the driver abandoned the vehicle -- normally used for transporting seafood -- when its air conditioning failed Wednesday night.

Fourteen of the 67 survivors were minors who were almost immediately returned to Myanmar. The adult survivors were tried and convicted of entering the country without permission. Those who can't pay a $63 fine will be jailed for two months and then deported, police said.

The truck's owner has been detained. The truck driver and organizers of the smuggling are being sought.

Prosperous Thailand is a magnet for people from Cambodia, Laos and Myanmar who take menial and dangerous jobs shunned by Thais, and face exploitation in their efforts to earn a living. More than 1 million migrants from Myanmar are believed to be working in Thailand.

One hospitalized survivor said he came with his 19-year-old wife from Mon State, a coastal province in eastern Myanmar.

Ko Ko Lah, 32, said they paid about $380 each to a human trafficking gang to arrange the trip, meeting his fellow migrants on the southern tip of a peninsula just across a spectacular island-specked bay from Thailand's Ranong province.

They were taken at night by fishing boat to a quiet pier in Ranong town, where they were all crammed into the truck's sweltering container area, measuring 7 feet wide by 7 feet high and 20 feet long.

"The container was very jammed and dark, my wife and I were trapped in the middle, after about 30 minutes we found that we did not have enough air to breathe, everyone begged for help," he said. "I heard many people call the driver on mobile phones but it seemed he did not answer."

"It was horrible, I heard people screaming, shouting and banging on the walls until I passed out," he said. "I regained consciousness and found that I was lying on the ground, confused. I crawled to the roadside and found some water there to drink."

Ko Ko Lah said he married just four days before the incident, with hopes that he and his wife could find work on a rubber plantation in Thailand's Phuket or Phang Nga province, where three relatives had earlier found jobs.

"I do not know the fate of my wife, but pray that she is still alive," he said.

Others in the group were believed to have been seeking service jobs in Phuket's booming tourism sector.

Col. Kraithong Chanthongbai, police chief for Ranong's Suksamran district, said the truck's owner denied any knowledge of the smuggling but was being held on a charge of conspiring to traffic the migrants.

The U.N.'s International Labor Organization said the demand by Thai employers for migrant workers -- documented or undocumented -- "is continuing and may even be accelerating. However, the formal systems of recruitment are not working."

It called for the Thai government to overhaul its system for employing foreign workers.

The reason for the failure include "a slow and expensive migrant registration system, a breakdown in the sending countries' abilities to provide the initial documentation required and legitimate concerns of migrants who are worried that they will not be able to change employers, even if they suffer abuse," said the ILO.

"Within such an environment, trafficking for labor exploitation is bound to flourish," it said.

Shares of Smith International Drop As Citi Downgrades After Recent Jump in Stock Price

NEW YORK (AP) -- Shares of Smith International Inc. fell Friday morning after recent stock gains led an analyst to downgrade the oilfield service provider.

The stock lost $2.01, or 2.9 percent, to $68.01 after the opening bell.

Citi Investment Research analyst Geoff Kieburtz cut his rating to "Hold" from "Buy" and said valuation is full at its current level. The stock has jumped about 23 percent since the Houston-based company posted a 17 percent jump in fourth-quarter profit Jan. 29.

Strong international growth will likely be tempered by "moderate" improvement in North American revenue, he said.

Kieburtz cut his first-quarter earnings estimate to 85 cents per share from 86 cents per share. Analysts polled by Thomson Financial expect, on average, earnings of 87 cents per share.

General Electric Tumbles As 1st-Quarter Profit Disappoints and Company Cuts 2008 Forecast

NEW YORK (AP) -- General Electric shares are tumbling after the conglomerate said financial market woes caused it to widely miss Wall Street expectations for the first quarter and drove it to lower its full-year profit forecast.

The Fairfield, Conn., company's shares dropped $4.32, or 11.8 percent, to $32.43 in heavy morning trading.

Goldman Sachs analyst Deane Dray took the stock off the bank's Americas Buy List, a portfolio of recommended securities, and downgraded shares to "Neutral" from "Buy."

GE's financial businesses did poorly, Dray said, with profits at the commercial financial business falling 20 percent. While the infrastructure business did well, major equipment orders increased just 11 percent versus Dray's expectations for 20 percent growth.

Nicole Parent of Credit Suisse also downgraded the stock to "Neutral" from "Outperform," or "Buy." All of GE's businesses reported weaker profit growth than she expected. She noted that profit in the health care, industrial, GE Money and commercial financial units all fell, with health care profits down 17 percent.

Citi analyst Jeffrey Sprague described the results as "the biggest, most overt miss we can recall in 16-plus years of coverage."

Obama Wants Shareholders to Have Say in Executive Pay

INDIANAPOLIS (AP) -- Democratic presidential candidate Barack Obama is demanding that company shareholders have a say in how much executives get paid as he pushes his populist message.

Obama, in remarks he planned to make to reporters Friday morning, wants Congress to pass legislation he has sponsored that would require corporations to have a nonbinding vote by shareholders on executive compensation packages.

Under Obama's legislation, shareholders could not veto a compensation package offered to an executive and would not place limits on pay. Rather, they would have a means to publicly express their position.

A similar bill passed the House last year.

The Illinois senator's comments come as he embarks on the third day of a four day-swing through Indiana, which holds its primary May 6. Obama and Sen. Hillary Rodham Clinton are running even in the state and have both been making economic pitches to voters.

"This isn't just about expressing outrage," Obama says in prepared remarks. "It's about changing a system where bad behavior is rewarded so that we can hold CEOs accountable, and make sure they're acting in a way that's good for their company, good for our economy, and good for America, not just good for themselves."

Income inequality is a hot button issue with audiences, particularly the blue collar workers that Obama is trying to peel away from Clinton in the more economically distressed regions of Indiana and Pennsylvania, which holds its primary April 22.

The high cost of chief executive pay has drawn criticism in recent years as salaries rose, stock options paid off like lottery jackpots, and perks like chauffeured cars and private jets spread.

USA Today reported this week that the median compensation for chief executives at the 50 largest companies in the United States was $15.7 million last year, even though some of the companies were not performing well.

Investor advocates, union pension funds and shareholder groups have supported the legislation. Republican critics worry it would give activist investors an inroad to change a company's policies.

Even President Bush last year questioned the extravagant pay of some company managers and directors, but said it was not a matter for government involvement.

Syntax-Brillian to Seek Review of Nearly $1.3 Million Fine for Importing Non-Digital TVs

TEMPE, Ariz. (AP) -- Consumer products manufacturer Syntax-Brillian Corp. said Friday it will seek a review of a nearly $1.3 million fine for importing and shipping television receivers that are not compatible with next year's switch to digital television.

The Federal Communications Commission reduced the fine from $2.9 initially imposed in May 2007. It also fined major retailers including Wal-Mart Stores Inc., Sears Holdings Corp. and Target Corp. for selling analog television receivers.

The FCC's investigation focused on mid-sized television models which Syntax said have been discontinued and replaced with Olevia LCD high-definition TVs, which carry digital tuners.

"Syntax-Brillian emphasizes that its Olevia LCD HDTVs are 100 percent digital and have been so for nearly two years," it said in a statement.

The company makes high-definition televisions, digital cameras and consumer electronics.

Congress ordered the switch to digital television to free up public airwaves for other uses, such as for police and fire departments. Digital television companies say the switch will lead to improved picture and sound for TV viewers.

The federal government is subsidizing the cost of buying a digital-analog converter box by offering $40 discount coupons to consumers with analog televisions.

(This version CORRECTS mention of Federal Trade Commission to Federal Communications Commission in second paragraph.)

Ex-Communist Party Boss Sentenced to 18 Years in China Corruption Case Involving Pension Funds

SHANGHAI, China (AP) -- The former Communist Party chief of China's financial capital was sentenced Friday to 18 years in prison for his role in a massive corruption scandal involving the city's pension fund and state-owned companies.

Chen Liangyu, who also was a member of China's powerful 24-seat Politburo, is the highest-level Chinese official to be dismissed in a decade. The official Xinhua News Agency said Chen was locked up "for taking bribes and abusing power."

He was accused of lending large amounts from the pension fund and helping businessmen buy stakes in state-owned companies, resulting in huge losses.

Chen's lawyer, Gao Zicheng, indicated Chen would appeal. "If Chen appeals, it's not over," he said, declining further comment. Chen was sentenced in Tianjin No. 2 Intermediate People's Court.

The party chief in Shanghai, China's largest and richest city, is one of the country's most powerful local government jobs. The man who replaced Chen, Xi Jinping, has already been promoted again and is widely seen as being moved into position to be China's next president.

Chen is accused of being at the center of a high-profile scandal in which more than $400 million in pension funds were improperly invested in real estate and toll road projects that included Shanghai's new Formula One race track.

He was expelled from the Politburo and from the party after being dismissed as Shanghai's top leader in September 2006.

The scandal investigation, which snared more than 25 local officials, has been widely viewed as part of President Hu Jintao's efforts to shove aside supporters of former President Jiang Zemin, whose political base was Shanghai.

Chen was among Jiang's most powerful allies. He reportedly clashed with Premier Wen Jiabao over Beijing's efforts to cool economic growth, lobbying instead for ambitious infrastructure projects.

Earlier this month, Shanghai tycoon Zhang Rongkun, reported by Forbes to be China's 16th-wealthiest businessman in 2005, was sentenced for his role in the scandal to 19 years in prison for bribery, share price manipulation, financial fraud and misuse of public funds.

In January, the former Formula One racing boss in China, Yu Zhifei, was sentenced to four years in prison for embezzlement for his own role.

In December, a Web site created by China's newly created anti-corruption bureau crashed after barely a day because too many visitors tried to log on to register complaints.

Nearly 2,000 local government officials were either disciplined or charged with crimes last year, the Xinhua News Agency reported in late December, citing the Communist Party's organization department.

CIT Leases 3 Airbus Jets to Saudi Airline Nasair

NEW YORK (AP) -- CIT Group Inc. said its aerospace unit leased three Airbus jets to Saudi Arabian airline Nasair, expanding its position in the burgeoning market for air travel in the Middle East.

About 7 percent of the unit's 300 airplanes are leased in the region.

The company said its CIT Aerospace unit will lease three Airbus A320-200s to the fledgling Saudi discount carrier.

Hair Dye Banned After Drought-Hit Indian Farmers Drink It to Commit Suicide

LUCKNOW, India (AP) -- Authorities in northern India have banned the sale of a cheap variety of hair dye after debt-ridden farmers were found to be drinking it to end their lives, an official said Friday.

At least 11 farmers have died from swallowing the hair dye in a drought-hit region of Uttar Pradesh state in the past three months, said Rajiv Agarwal, a senior state official.

Two-thirds of India's 1.1 billion people depend on agriculture, and most have been left out of India's economic boom. In parts of western and southern India, the dire economic state of farmers has been blamed for thousands of suicides in recent years.

The hair dye leads to kidney failure, said Ganesh Kumar, principal of the Maharani Lakshmi Bai Medical College.

"We have banned the sale of the cheap dye made locally in Uttar Pradesh state," Agarwal told The Associated Press.

The state's rugged Bundelkhand region has been battling a severe drought caused by the failure of monsoon rains for the past four years.

"The farm lands have turned barren. An exodus of people has begun -- the young have migrated to nearby cities, leaving behind women and elderly people," Agarwal said. The region is about 200 miles southwest of Lucknow, the capital of Uttar Pradesh state.

Last month, India's federal government announced plans to cancel debts due on or before Dec. 31, 2007, for poor farmers with land holdings of up to five acres. The move is expected to benefit about 4 million farmers.

Poor farmers often borrow money from banks or private lenders to buy seeds and meet family expenses. Some commit suicide after failing to repay the loans because of crop failures.

Ixia Cuts Top End of 1st-Quarter Outlook, Says It Does Not Expect to Report a Profit

CALABASAS, Calif. (AP) -- Network hardware maker Ixia Inc. on Thursday cut its first-quarter outlook on lower-than-expected sales.

The company said it now expects to report between a loss of 1 cent per share and breakeven results. Previously, the company said it would likely post results in a range between a loss of 1 cent per share and a profit of 2 cents per share.

Excluding charges, the company said its profit would range from 3 cents to 4 cents per share, compared to Ixia's earlier guidance of between 4 cents and 7 cents per share.

Analysts polled by Thomson Financial, on average, expect profit of 6 cents per share on revenue of $44.6 million. The estimates do not include charges related to stock-based compensation.

Ixia said its revenue would be between $41 million and $42 million, slightly below its earlier guidance of between $42 million and $46 million for the quarter.

The company said although sales were strong to its largest account, Cisco Systems, and in the Asia Pacific region, sales in Europe and Canada fell more than the company expected.

Lower-than-expected revenue from carriers in North America and Europe also contributed to the shortfall, the company said.

Ixia shares rose 6 cents to close at $7.69 in Thursday trading.

Intervoice Predicts 1st-Quarter Sales of $51M to $55M; Analysts Predict $54.3 Million

DALLAS (AP) -- Telecommunications products and services provider Intervoice Inc. on Thursday predicted fiscal first-quarter revenue between $51 million and $55 million.

Analysts polled by Thomson Financial expect revenue of $54.3 million.

Intervoice shares fell 32 cents, or 4 percent, to $7.75 in after-hours trading, after rising 8 cents to close regular trading at $8.07.

Hain Celestial Shares Fall After JPMorgan Cuts Rating, Predicting Disappointing Earnings

NEW YORK (AP) -- Shares of Hain Celestial Group Inc. dropped Thursday after a JPMorgan analyst downgraded the organic food company, predicting disappointing fiscal third-quarter results.

Shares fell $1.25, or 4.4 percent, to $27.47. The stock earlier traded as low as $26.50.

Analyst Pablo Zuanic downgraded the stock to "Underweight" from "Overweight." He wrote in a note to investors that lower sales growth and Hain's inability to raise prices has prompted concern that the company's earnings will disappoint in the quarter and the 2009 fiscal year ahead.

Zuanic wrote that although the company's management has told investors and analysts not to focus too much on its Celestial tea sales, tea still accounts for about one-fifth of the company's earnings. He added that tea sales trends have been disappointing as well.

Furthermore, Hain appears to be offering lower prices -- a mistake in an environment of increasingly high commodity costs, Zuanic said.

He added that Hain should either focus more on its own products or made acquisitions of higher-margin products a priority, rather than acquiring companies that make lower-margin products like turkey or bread.

Earlier this month, Hain acquired Daily Bread Ltd., a U.K. food producer. The company bought Pilgrim's Pride Corp.'s turkey business in March.

MannKind Trades Heavily After Wednesday's 60 Percent Dive, Suspension of Insulin Partner Hunt

NEW YORK (AP) -- MannKind shares traded heavily after the drug development company halted efforts to find a partner to market its Technosphere inhaled insulin.

"Given current market sentiment, we have decided to suspend partnership discussions," MannKind said Thursday. MannKind also said it will not be able to get a fair price for the product until late stage clinical data is available.

Shares of Valencia, Calif.-based MannKind Corp. plunged 60 percent Wednesday, setting an all-time low after Pfizer Inc. said a few patients who used Nektar Therapeutics' inhaled insulin Exubera in clinical trials developed lung cancer.

MannKind said that Technosphere Insulin has never been linked to lung cancer in preclinical trials, but noted that it would be difficult to find a partner at present.

Pfizer, which has a partnership with Nektar to develop and market Exubera, said there were too few cases to prove that Exubera was linked to cancer.

Piper Jaffray analyst Thomas Wei downgraded MannKind to "Neutral" from "Buy" Thursday, and UBS analyst Annabel Samimy lowered her rating to "Sell" from "Buy."

MannKind Corp. shares added 18 cents, or 7.7 percent, to $2.53 at more than double their average daily trading volume Thursday.

Families of Virginia Tech Victims Reach $11 Million State Settlement

ROANOKE, Va. (AP) -- Most families of victims of the mass shootings at Virginia Tech have agreed to an $11 million state settlement that will compensate families who lost loved ones, pay survivors' medical costs and avoid a court battle over whether anyone besides the gunman was to blame.

Gov. Timothy M. Kaine said Thursday a "substantial majority" of families of victims of the Virginia Tech shootings agreed to the settlement.

Peter Grenier and Douglas Fierberg, who represent 21 families, said the settlement was worth more than $11 million, but neither they nor the governor would discuss its terms until final papers are drawn in a few days.

Grenier and Fierberg said seriously injured victims "will be well compensated and have their health care needs taken care of forever," and that families who lost loved ones would be "similarly compensated and cared for."

"We want to make sure the settlement is fiscally responsible for the commonwealth," Kaine said, "but it's kind of a fair balance of a variety of interests."

Kaine called the agreement "very positive," but noted that families who have not agreed to it still could file suit. Notice must be filed by April 16.

Seung-Hui Cho, a mentally disturbed student, killed 32 victims and wounded two dozen others at Virginia Tech on April 16, 2007, before committing suicide. Forty families had previously filed notice with the state that they may sue.

Cho killed two people in a dormitory, then killed 30 more than two hours later in a classroom building before taking his own life. University officials have been criticized for waiting about two hours before informing students and employees about the first shootings, which police initially thought were an act of domestic violence.

The gunman had been ruled a danger to himself during a court commitment hearing in 2005 and was ordered to receive outpatient mental health care, but never received treatment.

Attorney General Bob McDonnell's office had no comment on the settlement, spokesman Tucker Martin said.

It was not immediately clear whether the settlement differed from an earlier state proposal, the details of which were obtained last month by The Associated Press.

That proposal called for representatives of each of those killed to receive $100,000. A pool of $800,000 was set aside for the injured in the plan, with individuals eligible to receive up to $100,000 apiece. Families of those killed could seek additional money from a $1.75 million hardship fund, and other money was to be set aside for attorneys' fees and a fund for charities.

The settlement also would give the injured and victims' families a chance to meet with the governor and university officials several times to discuss the mass shootings and changes on campus since then.

Grenier and Fierberg said the settlement "will also result in the release of previously undisclosed facts and information turned up by our firm's investigation that will enable the public to better understand the events which caused this senseless tragedy."

By accepting the proposal, family members gave up the right to sue the state government, the school, the local governments serving Virginia Tech and the community services board that provides mental-health services in the area.

Once the final agreement is drawn up and signed by families, settlements on behalf of those killed will be submitted for court approval.

In October, the families and surviving victims received payments ranging from $11,500 to $208,000 from the Hokie Spirit Memorial Fund, set up in the days after the shootings to handle donations that poured into the school. That fund will remain open for contributions to scholarships for five years.

Families originally were told they had to respond to the state's offer by March 31, but the deadline was extended.

Associated Press reporter Larry O'Dell contributed to this report from Richmond, Va.

Shares of Power Integrations Rise As Analyst Upgrades on Improving Sector, Likely Sales Boost

NEW YORK (AP) -- Shares of Power Integrations Inc. rose after an analyst upgraded the company, citing an improving sector and the chance for a number of catalysts to boost revenue.

The stock rose $2.94, or 10.1 percent, to $32.10. Shares have traded in a 52-week range of $21.40 to $35.03.

Banc of America Securities analyst Sumit Dhanda raised his rating to "Buy" from "Neutral" and his price target to $36 from $28.50. The new target implies he expects the stock to rise about 24 percent over Wednesday's $29.16 close.

San Jose, Calif.-based Power Integrations makes power chips used in consumer goods such as personal computers and cell phones, as well as industrial electronics.

"A national rollout mid-year of a tougher version of the California mandate that originally sparked Power Integrations' recent growth, to be closely followed by similar initiatives in Europe, should improve Power Integrations' design win momentum in the second half of 2008," Dhanda said in a note to clients.

The new standards -- as well as tough voluntary ones -- will likely favor integrated switch makers, such as Power Integrations, over current linear power supply makers and other alternatives, he said.

Dhanda currently has an "Overweight" rating on the sector. The Power Intergrations upgrade comes as he upgraded six other chip-related stocks, including Intel Corp.

Sturm, Ruger & Co. Recalls SR9 Pistols Over Safety Defect

SOUTHPORT, Conn. (AP) -- Firearm maker Sturm, Ruger & Co. said Wednesday it is recalling Ruger SR9 pistols made between October 2007 and this month because of a safety defect.

The company said the guns could fire if dropped with the safeties in the "off" or "fire" position.

"As a responsible manufacturer, we want to make our customers aware of this safety concern as soon as possible," the company said in a statement.

The company will retrofit all Ruger SR9 pistols with serial number prefix "330". SR9 owners can obtain information or register for the recall by contacting the company.

Shares of Sturm, Ruger & Co. rose 8 cents to $7.95 in after-hours trading after falling 45 cents, or 5.4 percent, to close at $7.86. The stock has traded in a 52-week range of $7.22 to $22.58.

99 Cents Only 4th Quarter Sales Climb 5 Percent, but Fall Short of Wall Street Expectations

COMMERCE, Calif. (AP) -- Discount retailer 99 Cents Only Stores said Wednesday its sales rose 5 percent in the fourth quarter, but the results missed Wall Street's expectations.

The company said its sales for the quarter ended March 29 jumped to $290.7 million from $277.9 million in the fourth quarter of 2007.

Analysts polled by Thomson Financial, on average, expected revenue of $294.8 million.

The company said retail sales climbed 5 percent, to $280.9 million, from $267.2 million.

Same-store sales, or sales at stores open at least a year, grew 1.5 percent. Same-store sales is a key indicator of retailer performance, since it measures growth at existing stores rather than newly opened ones.

The retailer said customer traffic and the number of transactions increased during the quarter. The entire Easter holiday season was also included in the quarter's results, which helped boost sales.

Although its sales grew in the quarter, 99 Cents Only said the results were lower than planned, due to soft Easter sales and not being able to carry several key items because of vendor price increases.

The retailer added that total sales rose nearly 9 percent for the fiscal year to $1.2 billion, from $1.1 billion in 2007.

99 Cents Only shares rose 44 cents, or 4.8 percent, to $9.55 in electronic after-hours trading. During regular trading, shares fell 44 cents, or 4.6 percent, to close at $9.11.

Hoku Changes Construction Contracts With 2 Companies to Boost Scope of Work

POCATELLO, Idaho (AP) -- Hoku Materials, Inc., a subsidiary of Hoku Scientific Inc., on Wednesday said it amended contracts with Stone & Webster Inc. and JH Kelly LLC, to boost the scope of work under each related to the construction of a polysilicon production plant.

The new contracts allow for the completion of a plant that can produce 3,500 metric tons per year of polysilicon, while the previous contracts specified a plant that could make 2,500 metric tons per year, the company said.

Hoku said the change orders establish a target cost of $390 million for the project, below its previous estimate of $400 million.

The company said it plans to begin polysilicon production at the plant in the first half of 2009, with a ramp-up to full production capacity of 3,500 metric tons per year in the first half of 2010.

Hoku began construction of the Pocatello, Idaho, plant last year. The property is graded for construction and JH Kelly recently finished pouring the foundations for its administration and controls buildings, Hoku said.

Hoku shares rose 20 cents, or 2.1 percent, to $9.63 in aftermarket trading, after falling 15 cents to $9.43 in the regular session.

InfoUSA Says 1st-Quarter Profit and Sales Rose, According to Preliminary Results

OMAHA, Neb. (AP) -- Database provider InfoUSA Inc. said Wednesday that its first-quarter earnings rose, according to preliminary results.

For the quarter that ended March 31, the company earned 13 cents per share, compared with 11 cents per share in the year-ago quarter, according to the results.

InfoUSA also said that the preliminary results show its quarterly revenue rose to $191 million from $158 million.

The company anticipates that it will not be able to file its quarterly report by the Securities and Exchange Commission's filing deadline. It has not yet filed its 2007 annual report due to an SEC investigation and a shareholder lawsuit that questions the company's spending.

InfoUSA said its preliminary results don't reflect possible adjustments to current or past results related to an ongoing internal review undertaken in response to the SEC investigation and shareholder lawsuit.

InfoUSA shares rose 6 cents to $5.11 in after-hours trading, after finishing regular trading down 9 cents at $5.05.

Economists Expect Slight Decrease in Weekly Unemployment Claims on Thursday

NEW YORK (AP) -- Last week's dismal jobs report for March reinforced the view of many economists that the nation is already in a recession.

The monthly report showed the unemployment rate jumped to 5.1 percent. Tomorrow, the Labor Department reports on how many workers filed for initial unemployment claims last week.

Economists are projecting a slight decrease, on average, from the prior week's 407,000. The estimates, though, range from 375,000 to 410,000. The weekly figures can be volatile.

Analysts Expect Rite Aid to Post 4Q Loss on Lower Margins From Brooks Eckerd Stores Purchase

NEW YORK (AP) -- Drugstore operator Rite Aid Corp. has already said its fourth-quarter revenue grew about 50 percent from the prior year to $6.81 billion, due to the acquisition of about 1,800 Brooks Eckerd stores in June.

But analysts expect the company to report a loss for the quarter on Thursday, due to lower margins from the acquired stores. Lehman Brothers analyst Meredith Adler rates the stock "Overweight," noting that the acquisition could boost its pricing power. Goldman Sachs analyst John Heinbockel rates it "Neutral," saying CVS Caremark (CVS) looks like the best bet in the industry.

DOT Tentatively Approves Antitrust Immunity for NWA, Delta to Share Atlantic Routes

MINNEAPOLIS (AP) -- Northwest Airlines Corp. and Delta Air Lines Inc. won preliminary approval to share revenue and coordinate schedules across the Atlantic, the Department of Transportation said on Wednesday.

Northwest, Delta, as well as Air France-KLM and two other carriers in the SkyTeam Alliance have sought immunity to essentially operate as one airline across the Atlantic. Northwest has had that permission for KLM for 15 years, before KLM's merger with Air France.

The Transportation Department said it issued a show-cause order tentatively approving the antitrust immunity. A final ruling is due April 30.

The SkyTeam carriers, which also include Alitalia and Czech Airlines, will remain subject to antitrust laws for non-trans-Atlantic flights.

The antitrust immunity in effect gives Northwest and Delta the benefits of a combination, at least for their Atlantic flights. They have been exploring consolidation of the airlines, but that has been held up so far by the failure of their pilots to make a deal on seniority.

Goodman Co. Announces Plant Expansion in Fayetteville, Tenn.

FAYETTEVILLE, Tenn. (AP) -- The Goodman Co. plans to spend $7.2 million to expand its heating and air conditioning plant in Fayetteville and add 300 jobs.

The plant about 70 miles south of Nashville makes heating, ventilation and air conditioning products for residential and light commercial use.

The expansion was announced Wednesday by the company and by Gov. Phil Bredesen's office.

"Goodman's decision to expand its Fayetteville plant reflects the business-friendly climate we have worked hard to create," Bredesen said in a statement.

Goodman is one of Fayetteville's largest employers with more than 1,500 workers. It is a subsidiary of Houston-based Goodman Global.

Questions and Answers About the Wave of Airline Cancellations

WASHINGTON (AP) -- American Airlines canceled more than 1,000 flights Wednesday, stranding about 100,000 people and adding to flights grounded a day earlier, as it inspected wiring on some of its jets that could cause a short or even a fire. Airline executives said the safety of passengers was never in jeopardy. It was American's second bout with mass cancellations in less than two weeks for failing to meet rules set by the Federal Aviation Administration.

Some questions and answers about the groundings:

Q: What prompted the FAA to issue the order on the MD-80 wiring bundles?

A: Reports of shorted wires, evidence of worn-down power cables, and fuel system reviews conducted by the manufacturer, Boeing Co. The airworthiness directive carried an effective date of Sept. 5, 2006, and airlines had 18 months to comply.

Q: What could happen if the wires shorted out?

A: Besides the loss of auxiliary hydraulic power, a fire in the wheel well of the airplane could be sparked by a short from the wires. The actions required by the government also are intended to reduce the possibility of fire or a fuel tank explosion that would destroy the plane, according to the FAA.

Q: Why were airlines given 18 months to comply?

A: Officials assessed the risks that the wires posed, and in the case of those that are near, but not inside a fuel tank, they determined that carriers would have 18 months, said FAA spokesman Les Dorr. Two things are required for an explosion -- fire and the proper mix of fuel and air -- and the wire bundles inspected in the MD-80s were not in a position where an explosion was likely, he added.

Q: Why didn't the airlines comply by the deadline?

A: Assuming the airlines received and understood the FAA order, "the likely answer is they believed they didn't have to," said Daniel Petree, dean of the College of Business at Embry-Riddle Aeronautical University in Daytona Beach, Fla. In general, businesses don't like to take on extra costs "if there is no payoff for them in doing it."

The carriers likely also assessed the risks to their fleet and weighed that against disrupting service on planes that already yield little revenue per seat.

Brian Stirm, director of aircraft maintenance at Purdue University's aviation technology department, added that 18 months was "more than adequate time to do a visual inspection." Even untrained mechanics and inspectors could identify chafing, which is the "wire bundle rubbing on something else," he added.

Q: What did it cost to comply, and how many aircraft were affected?

A: More than 1,000 airplanes worldwide were affected, including an estimated 732 in the U.S. Based on the required parts and labor time, the FAA estimated the cost to U.S. operators would be up to $1,304 per airplane.

While that figure may seem small, the FAA did not factor in revenue lost to the airlines if the planes are taken out of service, Petree said -- something the carriers likely did. Removing an aircraft for 12 hours could mean losing up to five trips, and having to compensate passengers for cancellations and missed connections with hotel rooms and other perks, he said.

Q: Didn't wiring problems lead to the explosion and crash of TWA Flight 800 that killed all 230 people aboard in July 1996?

A: Yes, but the explosion in the fuel tank of that plane, a Boeing 747, most likely came through a different wiring system, according to the National Transportation Safety Board. Air-conditioning units underneath the fuel tanks also are believed to have heated the vapors inside the tank, which made them more vulnerable to explosion.

Omega Protein Executive Vice President, General Counsel and Secretary Exercises Options

NEW YORK (AP) -- The executive vice president, general counsel and secretary of Omega Protein Corp., a fish meal and fish oil producer, exercised options for 44,732 common shares and then sold the stock under a prearranged trading plan, according to a Securities and Exchange Commission filing Tuesday.

In a Form 4 filed with the SEC, John D. Held reported he exercised options to buy the shares Friday for $10.58 apiece, and then sold the shares the same day for $14.13 apiece.

The stock sale was conducted under a prearranged 10b5-1 trading plan which allows a company insider to set up a program in advance for such transactions and proceed with them even if he or she comes into possession of material non-public information.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

Omega Protein is based in Houston.

Government Report on Thursday Expected to Show Slightly Narrowed US Trade Deficit in Feb.

NEW YORK (AP) -- The weak dollar is juicing American exports, which should ease the nation's trade deficit, but spiking energy costs are also playing a role, a government report Thursday morning is expected to show.

American exports have gained strength recently, as a weak dollar makes U.S. goods cheaper abroad. Such international demand has been one of the few bright spots for the U.S. economy.

Slowing domestic growth means less demand for foreign goods, but the surging price of oil is helping to push up the total value of imports. Economists expect a government report Thursday on the trade balance to show the U.S. trade deficit narrowed slightly in February from the prior month.

Ala.: State Mortgage Brokers Call for Reform

MONTGOMERY, Ala. (AP) -- The Alabama Mortgage Brokers Association has announced a plan that it says will help restore public trust through mortgage reform.

Craig McMurtrey, the group's president, said in a release Wednesday that the organization is working with the state Banking Department and members of the Legislature to bring about statutory changes in the mortgage industry.

McMurtrey said attention focused on the national mortgage crisis may help the effort to make changes to reassure the public.

The first part of the plan calls for additional licensing requirements for loan officers in the state, and a state authority to regulate out of state companies that serve consumers in Alabama.

The second part of the group's plan involves joining the National Association of Mortgage Brokers in sponsoring a lending integrity seal of approval for mortgage brokers in Alabama who meet certain criteria.

Stocks Fall Following Jump in Oil, UPS Profit Warning; Investors Face Concerns About Economy

NEW YORK (AP) -- Wall Street extended its losses Wednesday as a rise in oil prices and a profit warning from United Parcel Service Inc. raised investors' anxiety about the well-being of the economy.

Technology names were among the steepest decliners, with the tech-dominated Nasdaq composite index falling more than 1 percent.

The surge in oil prices weighed on transportation stocks and contributed to a pessimistic tone in the market. Crude prices jumped following a government report showing U.S. inventories fell by more than expected last week. The rise hurt shares of airline and trucking companies, which have already struggled with high fuel costs.

UPS, the world's largest shipping carrier, pointed to a weaker economy and higher fuel costs in trimming its forecast. Investors earlier this week received reports from aluminum producer Alcoa Inc. and chip maker Advanced Micro Devices Inc. that have made the market uneasy about overall first-quarter results.

Joe Kinahan, chief derivatives strategist for the brokerage service Thinkorswim Group Inc., said investors are nervous about the implications, including inflation, of higher oil prices. Still, he said the relative calmness seen in the markets in recent sessions is impressive even as investors remain cautious about the economy.

"It's the first week we have had in a while where stocks are trading on their own merit. That's why we're trading on oil," he said. "It's amazing how well the market has held in there with three days of not good news."

The Dow Jones industrial average fell 49.18, or 0.39 percent, to 12,527.26.

Broader stock indicators also declined. The Standard & Poor's 500 index fell 11.05, or 0.81 percent, to 1,354.49, and the Nasdaq declined 26.64, or 1.13 percent, to 2,322.12.

The Russell 2000 index of smaller companies fell 13.54, or 1.90 percent, to 698.38.

Declining issues outnumbered advancers by more than 2 to 1 on the New York Stock Exchange, where consolidated volume came to 3.43 billion shares compared with 3.66 billion shares traded Tuesday.

Bond prices jumped as stocks declined. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.48 percent in late trading from 3.56 percent late Tuesday.

Light, sweet crude jumped $2.37 to settle at a record $110.87 a barrel on the New York Mercantile Exchange after earlier rising as high as $112.21. The previous record, set last month, was $111.80.

The rise in oil hurt transportation stocks. Three relatively small air carriers have filed for bankruptcy in as many weeks -- in part because of high fuel prices. Among airlines, Continental Airlines Inc. fell $1.66, or 7.6 percent, to $20.24, while trucking company J.B. Hunt Transport Service Inc. fell $1.92, or 6 percent, to $29.85.

Gold prices rose, while the dollar was mixed against other major currencies.

Bill Schultz, chief investment officer at McQueen, Ball & Associates in Bethlehem, Pa., said some investors have grown worried that profit warnings from companies like UPS could signal the economy is facing a tougher climb than some investors had speculated and that further disclosures could derail hopes for an economic recovery in the second half of the year.

"We know the first quarter is not going to be good. UPS is sort of indicating that maybe things are continuing to be not so positive out there," he said. "People are looking for clues more, I think, for the second half this year."

Despite the market's declines on Tuesday and Wednesday, investors don't appear fearful, Kinahan said.

He noted that the Chicago Board Options Exchange's volatility index, known as the VIX, and often referred to as the "fear index," remained below the important 25 level. It rose 0.47, or 2.1 percent, to 22.83 Wednesday. Kinahan contends readings in this range suggest investors are being careful but aren't succumbing to fear.

"Thirty is really the level where people are really, really frightened," he said. "We might be a little bit cautious here as to what's going to happen."

Kinahan added that technology shares showed steeper declines Wednesday than some other stocks because investors seemed uncertain about what the next catalyst might be to drive tech issues. He noted that while Apple Inc. has been a strong performer, investors seem to be wanting more reason to buy into the sector. Apple fell $1.40 to $151.44.

In corporate news, UPS' earnings forecast weighed on the stock. UPS warned at an investor conference last month that it might miss its earnings target if weakness seen in February didn't ease. UPS fell $2.74, or 3.7 percent, to $70.57.

AMR Corp. fell $1.15, or 11 percent, to $9.17 after its American Airlines canceled more than 1,000 flights as it inspects the wiring on some of its aircraft. The move comes a day after American canceled 460 flights after federal inspectors found problems in work done two weeks ago on wiring.

Boeing Co. delayed its 787 jetliner by another six months, pushing the aircraft's debut for commercial service to the third quarter next year. Still, some analysts had expected a greater delay. The stock, one of the 30 that comprise the Dow industrials, rose $3.58, or 4.8 percent, to $78.60 and helped contain the blue chips' losses.

Overseas, Japan's Nikkei stock average fell 1.05 percent. Britain's FTSE 100 closed down 0.11 percent, Germany's DAX index declined 0.75 percent, and France's CAC-40 fell 0.77 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

Trustee Balks at Bonus Plan for Top Wellman Executives

WASHINGTON (AP) -- The federal official monitoring Wellman Inc.'s bankruptcy case has asked a judge to deny the company's request to pay up to $6.2 million in bonuses to eight top executives and other senior managers.

In papers filed Tuesday with the U.S. Bankruptcy Court in Manhattan, U.S. Trustee Diana G. Adams said the proposal attempts to bypass bankruptcy law provisions that prohibit bonuses designed to simply retain top workers.

Adams said "there can be no concealing" that the proposed bonus plan, which would pay the executives and a larger class of Wellman mangers bonuses tied to the company's sale price, is simply a retention plan.

Changes to the Bankruptcy Code that took effect in 2005 put strict limits on the type of bonuses that companies can pay their top executives. Bonuses intended to keep top employees, or insiders, were sharply curtailed by the new provisions.

Adams said Wellman's plan "improperly attempts to bypass these important new provisions by recharacterizing the proposed bonuses as financial 'incentive' payments."

Adams asked the bankruptcy court to throw out the bonus plan, which could pay out as much as $6.2 million in total if Wellman's assets sell for more than $550 million. A court hearing on the bonus plan is scheduled for April 15.

Wellman, which entered Chapter 11 protection in February, sought approval to pay the sale-tied bonuses because plans to sell its assets or reorganize by Aug. 15 have put a "tremendous burden" on the executives.

Wellman's lenders have set a mid-August deadline for the plastics manufacturer to sell its assets or complete a stand-alone reorganization. The company said a sale is the "most likely outcome." It has received non-binding offers from a "number of buyers" and is in the process of selecting a stalking-horse bidder to open an auction for its business.

Super Micro Computer Lowers 3rd-Quarter Revenue Forecast, Shares Fall After Hours

SAN JOSE, Calif. (AP) -- Super Micro Computer Inc., which makes server systems and components, lowered its fiscal third-quarter revenue outlook Wednesday, sending shares down in after-hours trading.

For the quarter ended March 31, the company expects sales between $136.5 million and $137 million, below its January forecast for revenue between $137 million and $142 million.

Super Micro expects a profit between $4.5 million and $5 million, or 12 cents to 13 cents per share for the quarter, compared with a profit of 13 cents per share in the same period a year earlier.

The company forecast adjusted earnings of 14 cents to 16 cents per share.

The company, like others, saw "increasing signs of oncoming economic weakness" during the quarter, said Charles Liang, president and chief executive, in a statement.

Super Micro plans to post its results on April 30.

Shares fell $1.02, or 10.8 percent, to $8.41 in after-hours electronic trading. The stock closed down 7 cents at $9.43 in the regular trading session.

MGIC Investment Sells $390 Million of Convertible Debentures Due 2063 in Private Placement

NEW YORK (AP) -- Mortgage insurer MGIC Investment Corp. said Wednesday it has sold $390 million of its 9 percent convertible junior subordinated debentures due 2063 in a private transaction.

In a filing with the Securities and Exchange Commission, MGIC said the total includes $25 million of debentures sold on Tuesday as a result of the purchasers exercising in full an option to buy additional debentures.

The initial conversion price is about $13.50 per share, the Milwaukee-based company said.

MGIC shares fell 59 cents, or 5.1 percent, to close at $10.90. Shares gained 13 cents to $11.03 in aftermarket trading.

Type of Planes at Heart of American Review Were Involved in Recent Deadly Crashes Overseas

NEW YORK (AP) -- The MD-80 series, a workhorse family of airplanes at the center of a growing maintenance problem for American Airlines, has been involved in two deadly crashes overseas and the carrier's most serious mid-air emergency in recent months.

The twin-engine plane began life as a modified version of the DC-9, entering service in October 1980. Boeing Corp., which later bought the aircraft's original manufacturer, McDonnell Douglas Corp., quit selling the plane in 1999.

AMR Corp.'s American Airlines is the world's largest operator of MD-80s, although the planes are also used by Delta Air Lines Inc., Alaska Airlines, Allegiant Air and numerous carriers abroad. Despite their relative age and lower fuel milage, the planes make up nearly a third of American's fleet.

"It's a ubiquitous single-aisle domestic airliner," said Robert Mann, an airline consultant who was involved in American's fleet planning when it first decided to use the plane. "Over time, it's obviously been an airplane American liked."

American mostly uses the planes on mid-range routes from hubs in Chicago and Dallas. The Fort Worth, Texas-based carrier canceled more than 1,000 flights Wednesday to re-inspect wire bundles in the planes' landing gear wheel wells. Alaska also canceled flights to check the wires.

The carriers renewed their inspections following Federal Aviation Administration audits involving multiple types of aircraft. The agency is stepping up maintenance reviews after acknowledging its inspectors were too lax last year with Southwest Airlines Co.

Les Dorr, a spokesman for the FAA, said problems with the MD-80 wires "could make the plane lose auxiliary hydraulic power or maybe cause a fire in the wheel well of the airplane."

An FAA airworthiness directive that is the basis for the inspections said the checks "are also intended to reduce the potential of an ignition source adjacent to the fuel tanks, which ... could result in a fuel tank explosion and consequent loss of the airplane."

The airlines contend the wires in question pose no threat to safety.

"This may be not so much a safety issue, just somebody wanting to have something done in a black-and-white fashion when before it was more of a gray area," Mann said.

The National Transportation Safety Board lists 36 accidents and other incidents involving MD-80s over the past five years.

On Sept. 16, an MD-82 operated by Orient Thai Airways overran a runway upon landing in heavy rain in Phuket, Thailand, killing 89 passengers and crew. One and a half months later, an Atlasjet MD-83 crashed on approach to Isparta Airport in Turkey, killing 57.

In late September, an American Airlines MD-82 jet carrying 138 passengers was forced to turn back shortly after takeoff in St. Louis when an engine fire broke out. On approach, the nose landing gear did not extend and the crew had to lower the gear using an emergency backup procedure, according to an NTSB report. Everyone aboard got off the plane safely.

Treasury Prices Rise As Wall Street Banks Rekindle Credit Market Worries

NEW YORK (AP) -- Treasury prices rose Wednesday as a rise in worrisome assets at major Wall Street investment banks and a slow start to the first-quarter earnings season drew investors to the safety of government bonds.

Goldman Sachs Group Inc., Morgan Stanley and Lehman Brothers Holdings Inc. said Wednesday that difficult to value assets known as Level 3 assets increased in the first quarter compared to the previous quarter. Meanwhile, United Parcel Service Inc. reduced its first-quarter earnings forecast, citing rising fuel costs, a flagging economy and falling domestic shipments.

Wednesday's reports bolstered the idea that the credit markets remain tight and the economy continues to slow, which persuaded investors to put more money into Treasurys.

The benchmark 10-year Treasury note rose 22/32 to 100 7/32 with a yield of 3.47 percent, down from 3.56 percent late Tuesday, according to BGCantor Market Data. Prices and yields move in opposite directions.

The 30-year long bond rose 1 4/32 to 101 1/32 with a yield of 4.31 percent, down from 4.38 percent.

The 2-year note rose 7/32 to 99 31/32 with a yield of 1.77 percent, down from 1.88 percent.

The three-month Treasury bill yielded 1.07 percent, down from 1.39 percent late Tuesday, and the discount rate was at 1.29 percent, down from 1.37 percent.

In after-hours trading, Treasurys moved very little. By 5 p.m. EDT, the 2-year yield was at 1.77 percent, the 10-year yield was at 3.48 percent, and the 30-year yield was at 4.32 percent.

Trading in Treasurys in recent weeks has been "kind of all over the place," said T.J. Marta, fixed-income analyst at RBC Capital Markets. He said the economic fundamentals would argue for even lower rates in short-term notes, "but there are so many cross-currents going on in the market right now."

One big factor behind the erratic trading has been the Federal Reserve's issuance of hundreds of billions of dollars worth of Treasury notes to banks and other borrowers in return for other types of debt. The Fed's aim is to keep money flowing freely through the financial system, but the effect on the Treasury market has been more pressure than there would normally be on short-term Treasury prices during times of economic weakness.

However, "as data deteriorates between now and early July, which is our outlook, it's going to be hard for the 2-year yield to move higher," Marta said.

On Tuesday, short-term Treasury prices rose after minutes from the most recent Federal Reserve meeting revealed policymakers fretted over the possibility of a deep recession when lowering interest rates in March.

Hill International Director Arnaud Ajdler Sells 15,000 Shares Under Prearranged Plan

NEW YORK (AP) -- A director of construction consulting firm Hill International Inc. sold 15,000 shares of common stock under a prearranged trading plan, according to a Securities and Exchange Commission filing Tuesday.

In a Form 4 filed with the SEC, Arnaud Ajdler reported selling the shares for $13 to $13.50 apiece.

The stock sale was conducted under a prearranged 10b5-1 trading plan, which allows a company insider to set up a program in advance for such transactions and proceed with them even if he or she comes into possession of material nonpublic information.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

Hill International is based in Marlton, N.J.

Chevron Says 1st-Quarter Upstream Earns to Benefit From Higher Oil and Gas Prices

SAN RAMON, Calif. (AP) -- Chevron Corp. said Wednesday it expects its first-quarter upstream earnings to get a boost over fourth-quarter levels from higher crude oil and natural gas prices.

But first-quarter downstream earnings are expected to be flat compared with the fourth quarter, the company said.

Upstream operations include the exploration and production of oil and gas, while downstream operations include refining, marketing and transportation of energy products.

As the price of oil has risen in recent months, the industry's profit margins for refining and marketing have slipped, because gasoline prices haven't kept pace.

In addition, Chevron said it expects corporate and other charges to be higher between periods. And foreign exchange effects are expected to cut further into the company's first-quarter results than they did in the fourth quarter 2007, the company said.

Chevron also said it now expects its 2008 after-tax charges related to corporate and other activities to be between $250 million and $300 million, up from its previous guidance of $160 million to $200 million.

The company blamed higher costs related to technology projects and other corporate items.

Chevron shares rose 20 cents to $90.15 in aftermarket trading, after rising 67 cents to $89.95 in the regular session.

Judge Gives Preliminary OK to Chrysler-UAW Health Care Deal

DETROIT (AP) -- A federal judge gave preliminary approval Wednesday to a deal that would require Chrysler LLC's hourly retirees to pay more for health care and would shift the automaker's retiree health care obligations to a union-administered trust.

U.S. District Court Judge Robert Cleland tentatively approved the agreement Wednesday, saying he found it fair and reasonable. Cleland set a June 30 public hearing on the agreement.

Chrysler and the UAW agreed to the trust as part of contract negotiations last October. But they need court approval for it to take effect. The UAW and attorneys representing several retirees sued Chrysler in an effort to get court approval for the change.

Chrysler has 125,000 retirees, spouses and dependents covered by the agreement and 45,000 active U.S. hourly workers. If the court agrees to the change, Chrysler would contribute $10.3 billion to the trust, which would be responsible for covering the automaker's estimated $18 billion in retiree health care obligations. The trust would be run by an 11-member committee, with six members picked by the court and five chosen by the UAW.

UAW attorney Julia Penny Clark said the agreement protects retirees' benefits.

"This is the best way to assure that the benefits are taken care of and the auto companies can continue to stay in business," she said.

Chrysler attorney Nancy Ross said the agreement eliminates risk by separating retiree benefits from Chrysler's financial situation.

"We do believe in the light of the uncertain environment that Chrysler is operating that this settlement is the best for all parties," Ross said.

General Motors Corp. and Ford Motor Co. agreed to similar trusts with the UAW last fall. Cleland granted preliminary approval to GM's trust last month, and U.S. District Judge Paul Borman was scheduled to consider Ford's trust Thursday. The three automakers have a combined $86 billion in retiree health care liabilities on their books that would be taken over by their trusts as of 2010.

Under the new agreement, Chrysler's retired hourly workers will also face new co-payments and deductibles. Single Chrysler retirees will pay an $11 monthly premium and a $159 annual deductible, according to William Payne, who represents retirees in the lawsuit. That change will remain in effect at least until 2012, when the independent board administering the trust will be allowed to make further changes to retiree benefits.

The UAW reached agreements with GM and Ford in 2005 to make U.S. hourly retirees pay more for their health care, but the UAW didn't agree to make the same changes at Chrysler until it reached the new contract last fall.

Eastern Insurance Holdings Board of Directors Approves $10 Million Buyback Program

LANCASTER, Pa. (AP) -- Insurance group Eastern Insurance Holdings Inc.'s board of directors approved a $10 million stock buyback program Wednesday.

The company said the program is in addition to a prior program for just more than 2 million shares, of which just under 1.9 million shares have been purchased.

The repurchased shares will be held as treasury shares, the company said.

Eastern Insurance Holdings had about 10.1 million shares outstanding as of Dec. 31.

Shares of Eastern Insurance Holdings fell 11 cents to close at $16.30.

NJ Health Chief Says Some Hospitals Must Close to Help Others

TRENTON, N.J. (AP) -- The state may need to let some hospitals close to strengthen others, the state health commissioner told lawmakers on Wednesday.

As senators worried about the effects of the governor's 14 percent cut in state aid for hospitals, Heather Howard, the state health chief, cited a recent report that found some New Jersey hospitals must close to improve the industry's financial woes.

"Unfortunately, because we have too many beds, some hospitals may need to close and when a hospital closes it may make other hospitals stronger in that area," Howard said during a Senate budget hearing.

Of the state's 78 hospitals, four hospitals closed in the last 18 months, four others announced plans to close and five filed for bankruptcy protection, with about half the others losing money. By comparison, the state had 112 hospitals 20 years ago.

"In some cases we may need to let market forces take effect, which may mean hospitals will close, and what our job is to make sure that we're saving the safety nets and preserving access," Howard said.

Corzine's proposed cut for hospitals is part of $2.7 billion in cuts to try to fix state finances plagued by deficits, high debt and taxes.

Much of the cut would come from money provided by the state to help treat the state's 1.5 million uninsured residents.

The New Jersey Hospital Association estimates the cuts would mean no state aid for 26 hospitals and less aid for 37.

"We fear the ultimate losers will be New Jersey's residents, many of whom will see more hospital closures, job cuts and service reductions in their communities," said Betsy Ryan, the association's chief operating officer.

Corzine's plan calls for $608 million in so-called charity care, but also calls for delivering the most aid to hospitals that treat the most uninsured residents. It also would create a special emergency fund to help struggling hospitals.

Sen. Kevin O'Toole, R-Essex, said the number of hospital closings in recent years is startling.

"I think it's unacceptable in this day and age that people are worried about where they go," he said.

Sen. Joseph Vitale, the Senate health committee chairman, worried the cut would increase health insurance costs and prompt more people to lose coverage.

Sen. Dana Redd feared "a statewide health care crisis" if urban hospitals close.

"Even in difficult times, we cannot turn our backs on the health care plight of the poor, and we cannot balance our budget on the backs of those people who are already struggling to make ends meet," said Redd, D-Camden, vowing to seek alternatives to health care cuts.

Corzine, speaking Wednesday on WOR radio, said he understands displeasure with his proposed cuts but argued he has no choice.

"We don't have the money," Corzine said. "If you don't have the money, you can't spend it."

US Airways, Union Reach Tentative Agreement for Ramp and Baggage Handling Employees

TEMPE, Ariz. (AP) -- US Airways Group Inc. said Wednesday it reached an agreement with the International Association of Machinists and Aerospace Workers on a contract for the airline's 7,700 ramp and baggage handling employees.

The agreement, which is still subject to ratification, establishes new wages for the workers.

If ratified, the agreement would be effective through Dec. 31, 2011.

The employees are currently working under two separate agreements -- one for US Airways employees and one for America Fleet Service employees. US Airways bought America Fleet Service in 2005.

The agreement provides for a single contract that would cover both.

US Airways shares rose 29 cents, or 3.3 percent, to $9.13 in electronic after-hours trading. During regular trading, shares fell $1.03, or 10.4 percent, to close at $8.84.