The Air Force canceled parts of a $1.05 billion contract with Boeing for development of a new air defense network for Saudi Arabia. An Air Force spokesman said the contract was "partially terminated" for default because Boeing didn't meet the delivery schedule.

Domestic airlines suffered a record $2 billion loss for 1990, most of it registered after Iraq's Aug. 2 invasion of Kuwait caused fuel prices to leap, according to the Air Transport Association, which represents most U.S. airlines.

The SEC voted to streamline the process requiring top corporate officers to report trades in their companies' stock.

Catalogue retail sales were up about 9 percent at Christmas over the 1989 holiday, performing somewhat better than general retail sales, according to Chicago-based catalogue consultants Marke/Sroge Communications, who conducted a survey of leading catalogue companies.

Money market mutual fund assets rose $16.38 billion in the latest week, shattering the previous record increase set the week of the 1987 stock market collapse, the Investment Company Institute said. A flight from falling stock and bond markets exacerbated normal year-end volatility of the funds.

Fiat plans to lay off 65,000 workers for a week in February because of sluggish demand for automobiles. The layoff will cut production by 40,000 cars.