Compaq Computer, the world's No. 1 personal computer maker, had a second-quarter loss of $184 million, in line with analysts' forecasts. The company plans to cut as many as 8,000 more jobs, or 12 percent of its work force, to reduce costs.
Drugstore.com shares more than doubled in value in the online pharmacy's first day of trading on the Nasdaq Stock Market, rising $32.25 from their initial public offering price of $18 to end the day at $50.25. The company ended the day valued at $2.13 billion.
American Airlines and British Airways plan to withdraw their application to the U.S. Department of Transportation to set up a global aviation alliance, a U.S. government official said. The airlines will announce the end of their three-year effort this week because talks with Britain's Office of Fair Trade were deadlocked, the official said.
Wells Fargo Securities filed suit against PaineWebber, seeking an injunction that would prevent the brokerage from using allegedly confidential Wells Fargo client information to solicit new business. PaineWebber allegedly obtained the information from a newly hired employee who resigned from Wells Fargo last week. PaineWebber is seeking expedited arbitration of the case before the National Association of Securities Dealers.
Cendant said it will file a $300 million breach-of-contract suit against HomeStore.com and its RealSelect subsidiary. RealSelect operates Realtor.com, the largest home-listing site on the World Wide Web, for the National Association of Realtors. Cendant owns the Century 21, Coldwell Banker and ERA real estate franchise brands. Cendant alleges the RealSelect.com division had offered Cendant a stake in a future initial public offering in return for exclusive third-party rights to Cendant's real estate listings. HomeStore.com filed for an IPO of up to $100 million last month. HomeStore.com made equity offers to certain Cendant executives, but not to Cendant itself, Cendant said. HomeStore.com declined to comment on the complaint.
Orders for durable goods rose at a slower-than-expected pace in June, restrained by reduced demand for industrial machinery, government figures showed. Total orders for items designed to last several years rose 0.3 percent last month after a 0.8 percent increase in May, the Commerce Department said. The June increase was less than the 1 percent rise expected by analysts.
Yields on two-year Treasury notes fell in auction to 5.544 percent, the lowest level in two months. The yield was 5.754 percent at the last auction on June 23. The notes will carry a coupon interest rate of 5.5 percent, with each $10,000 in face value selling for $9,991.70.
Conoco reported that its earnings fell 27 percent in the second quarter, to $114 million, because it was unable to pass on higher crude oil costs to buyers of gasoline and other fuels.
DuPont said its second-quarter profit from operations rose 5.6 percent, to $886 million, helped by acquisitions such as Hoechst's Herberts paints unit and stronger Asian demand.
Pharmacia & Upjohn said its second-quarter earnings rose 15 percent, to $216 million, as it sold more of its Xalatan glaucoma treatment as well as its Detrol incontinence pill.
Sony said its fiscal first-quarter profit dropped 55 percent, to $160 million, as the result of a stronger yen and lower sales in its electronics, video game, music and movie operations.
Tenet Healthcare said fiscal fourth-quarter profit fell 13 percent, to $130.1 million, as the hospital chain, the nation's second largest, struggled with cuts in Medicare and a slowdown in payments from health insurers.
ExecuStay by Marriott, the new corporate housing business of Bethesda-based Marriott International, made two acquisitions that will bring its total inventory of corporate housing units to about 6,000 nationwide. ExecuStay acquired both the 300-unit, Columbus, Ohio-based Executive Living, and the corporate housing division of Dallas-based JPI, one of the nation's largest developers of multifamily housing, for an undisclosed sum.
USA Digital Radio of Columbia and Texas Instruments agreed to cooperate in the development of chips for use in digital AM/FM radio receivers. The technology aims to give consumers CD-like sound quality while listening to AM and FM stations, as well as data displayed on a radio screen such as song title and artist's name, and traffic, weather and news reports.