Last Updated Jun 20, 2007 1:22 PM EDT
- Circuit City reported a steep first-quarter loss and expects more sales volatility in the coming months. The retailer reported declining sales in TVs, DVD players, camcorders, and other key items. Although sales of flat-panel, plasma, and LCD TVs were strong, high gas prices combined with the housing slump may dissuade Americans from such big-ticket purchases. Circuit City is proceeding with a restructuring plan to replace 3,400 employees with lower-cost workers, a move that may hurt its ability to compete with customer-service-oriented rival Best Buy.
- A computer glitch halted all departing United Airlines flights systemwide for two hours this morning. The breakdown came just one day after the airline made two positive announcements: United plans to hire 100 new pilots by the end of 2007, the first time the carrier has added new pilots in six years, and it has also outlined its goals for a potential merger.
- FedEx's fiscal fourth-quarter profits were lower than expected, and a slight increase in revenue was partly due to a settlement with Airbus over a canceled order of A380 cargo planes. The softening economy and a weakened industrial sector may reduce demand for its services in the coming months, but anticipated modest improvements in the economy and FedEx's diverse business mix may help the company rebound later this year.
- The world's number-two securities firm Morgan Stanley announced a second quarter profit increase of 40 percent. The firm showed a 34 percent increase in fixed-income trading and a 33 percent gain in equity trading. Regulatory changes have allowed Morgan Stanley and other firms to take more risks when trading, which analysts believe has led to higher profits.