ECONOMY

Union wages this year rose 3.8 percent over the life of the contracts negotiated, the Labor Department said.

COMPANIES

Mobil said its producing well in the Gulf of Mexico flowed at 9,300 barrels of oil a day, the largest flow ever from a well penetrating a single zone in the Gulf. The well, which began production last week, also yielded 14 million cubic feet of natural gas a day.

Kay Jewelers's senior debt was upgraded by Moody's Investors Service from CAA to BBB. The service also said it was reviewing the rating for possible additional upgrades.

Crop Genetics issued 2.5 million shares of convertible preferred stock that was priced to yield 9.5 percent.

Jiffy Lube franchise owners in Houston filed suit against Pennzoil, Jiffy Lube's parent company, alleging that Pennzoil is engaged in a conflict of interest in which it backs both Jiffy Lube franchises and the independent stations with which they compete. The owners also claimed that Pennzoil lied about financial problems and tried to force franchisees out of business.

Ford, which only last week began offering $500 rebates to entice customers into showrooms, said it would increase prices this fall by about $500, or 3.2 percent, as well as raise transportation charges.

ACQUISITIONS

UNC of Annapolis completed the sale of its Colorado-based environmental services subsidiaries, UNC Geotech and UNC Remediation, to Waste Management for $24 million in cash.

REGULATION

The U.S. International Trade Commission voted unanimously against granting Keystone Camera Products trade relief in the form of higher tariffs and import quotas from a flood of cheap foreign imports. Keystone contended that foreign imports have hurt the domestic camera industry and could jeopardize the future of 500 manufacturing and distribution jobs in New Jersey.

The Commodity Futures Trading Commission has filed a nine-count administrative complaint charging four traders on the New York Mercantile Exchange with defrauding customers. The complaint alleges that the four noncompetitively executed crude oil futures trades for customers.

CONTRACTS

MCI signed a three-year, $30 million contract with Prime Motor Inns of Fairfield, N.J., to provide long-distance service to 133 hotel locations. MCI said it was its largest contract to date with the hotel industry.

Planning Research Corp. of McLean won a contract to oversee the replacement of the Senate's local and wide-area data communications network. If all options are exercised, the contract would be worth about $65 million over 10 years.

Pan American Satellite, which operates the world's first privately owned international communications satellite, signed a deal with Contel Federal Services to provide data service to Latin America and the Caribbean. Terms were not disclosed.

EARNINGS

Chevron, buoyed by strong profits in domestic refining and marketing, posted a 60 percent increase in second-quarter profits from the same period a year ago.

Mobil, the nation's second-largest oil concern, said its profit climbed 24 percent in the second quarter.

Texaco, the nation's third-largest oil company, said earnings during the second quarter were down 4 percent.

Phillips Petroleum reported its second-quarter earnings fell 47 percent.

Sun Co. said second-quarter profits rose 10 percent.

Dow Chemical reported that its second-quarter earnings dropped 50 percent, but that its sales rose 4.5 percent.

Loral Corp., the defense electronics company that was selected as the winning bidder for Ford Aerospace earlier this week, reported a 7.2 percent increase in profit for the quarter ended June 30. Sales for the quarter were $318 million, up 36 percent from the $233 million in the same period a year ago.

Morgan Stanley reported earnings down 48.2 percent in the second quarter.

Salomon Brothers said second-quarter profit fell 52.6 percent.

Times Mirror Co., publisher of the Los Angeles Times, the Baltimore Sun and other newspapers, said its earnings dropped 44.7 percent from results a year ago that included a gain on a timberlands sale.

Tribune Co., publisher of the Chicago Tribune, the New York Daily News and owner of the Chicago Cubs, said its profit tumbled 25 percent in the second quarter.

Knight-Ridder, the Miami-based newspaper and business information services company, said its earnings skidded 64.8 percent for the second quarter from results last year that were inflated by gains on the sale of a newspaper and television stations.

Johnson & Johnson said its second-quarter earnings rose 19 percent.

Weyerhaeuser reported a 26 percent drop in second-quarter earnings.

Allied Signal said its earnings fell 15 percent in the second quarter.

ODD LOTS

McDonnell Douglas has been sued by Lloyd's of London for $6 million. Lloyd's is alleging negligence in damage to a satellite, which was damaged in an accident at a Cape Canaveral launch pad in June 1989.