Consumers shrugged off enough of the recent bad news at the gasoline pump to buy new cars and light trucks at a 10 million unit annual rate, not much different from the average for the first half of the year, automakers reported. Of those cars and trucks, 7.2 million were produced in the United States.
Federated and Allied stores unveiled an ambitious plan to improve profitability that assumes Campeau Corp.'s U.S. retailers will emerge from bankruptcy next year. An unspecified number of store closings are contemplated, but the company declined to say which of Allied's and Federated's 250 stores are likely to go out of operation.
Crestar's debt rating was lowered by Moody's Investors Service, which cited the bank's "significant exposure to its local real estate markets, which have been showing signs of increasing softness." About $300 million of securities are affected.
Kellogg was sued by Iowa Attorney General Tom Miller, who charged that the company's health claims for Special K cereal -- "keep the muscle, lose the fat" -- 40+ Bran Flakes and Frosted Flakes cannot be demonstrated.
The Resolution Trust Corp. is considering a plan to permit government financing for buyers of junk bonds held by the saving and loan cleanup agency, Peter Monroe, president of the RTC's oversight board, told Dow Jones News Service.
U.S. manufacturers aggressively increased their foreign investment in the first half of 1990, showing growing interest in Eastern Europe, the Conference Board reported. U.S. firms made 109 new manufacturing investments abroad during the first half of 1990, up from 99 in the first half of 1989.