Nation digest 08/20/02

Economic indicators do better than expected

NEW YORK -- Investors sent stocks surging Monday after learning that a key gauge of U.S. economic activity posted a better-than-expected performance in July.

The Conference Board said its Index of Leading Economic Indicators fell 0.4 percent to 111.7. Analysts had expected a decline of 0.5 percent.

The news sent the Dow Jones industrial average up 212.87 points, according to preliminary calculations.

Experts said the decline confirmed that the economy is still in a shaky recovery, but they were encouraged that consumers were continuing to buy big-ticket items like cars and homes.

The index measures where the overall U.S. economy is headed in the next three to six months. It stood at 100 in 1996, its base year. July's decline was the third time in the last four months that the index failed to increase.

11-year-old kidnapped and raped; man arrested

SALT LAKE CITY -- An 11-year-old girl was kidnapped from her bedroom Monday by a man who raped and beat her in her back yard before he was captured, police said.

Javier Sickler, a former high school classmate of the girl's father, was arrested after authorities found him attacking the girl in suburban Midvale, police Sgt. John Salazar said.

The girl, who police said was probably beaten with a hammer, was in critical condition.

Salazar said he didn't know of any connection between Sickler and 14-year-old Elizabeth Smart, who was abducted in June from a bedroom she shared with her 9-year-old sister in their Salt Lake City home. Elizabeth has not been found.

It wasn't immediately clear whether Sickler had an attorney.

College criticizes ranking as top 'party school'

BLOOMINGTON, Ind. -- Indiana University was crowned the nation's No. 1 "party school" Monday in an annual Princeton Review survey that school leaders and medical experts derided as irresponsible and unscientific.

Following IU in the rankings were Clemson University, the University of Alabama-Tuscaloosa, Pennsylvania State University and the University of Florida.

IU officials questioned the No. 1 ranking. The school, which didn't appear on the list last year, has toughened its stance on student drinking since the 1998 alcohol-related death of a student.

The survey, conducted since 1992, ranks schools in 63 categories based on in-person or computer interviews with 100,000 students.

General Motors to recall nearly 720,000 vehicles

DETROIT -- General Motors Corp. recalled nearly 720,000 cars and trucks Monday that have potential air bag problems.

The first recall includes 570,000 model year 2000 pickups and sport utility vehicles with a problem that could prevent air bags from working in certain frontal collisions.

The affected models include Chevrolet Silverado and GMC Sierra pickups and Tahoe/Suburban and Yukon/Yukon XL SUVs. Only full-size pickups and SUVs built between February 1999 and February 2000 are affected.

The second recall includes 150,000 2002 and 2003 Buick, Cadillac, Chevrolet, GMC, Oldsmobile and Pontiac cars and trucks built between May and July 2002.

In these vehicles, GM said the air bag inflation device on the driver's side may break apart during inflation and "strike or injure the occupants." The air bag also would not fully inflate.

Owners of cars, trucks and SUVs involved in either recall are asked to take their vehicles to a dealer. All repairs will be performed at no cost.

-- From wire reports