Nation digest 10/22/02

Leading indicators fall for fourth straight month

NEW YORK -- A key measure of future economic activity fell in September, pulled down by the stock market. It was the fourth straight monthly decline in the index, and raised again the prospect of a "double dip" into recession for the U.S. economy.

The Conference Board reported Monday that its Index of Leading Economic Indicators fell 0.2 percent, matching Wall Street expectations.

However, the board's index of current economic activity held steady.

"A stalling out of growth is a more reasonable prospect than the economy falling back into recession," said Conference Board economist Ken Goldstein. "Except for the financial markets, there is little evidence of a developing economic decline."

The leading index, which attempts to predict the strength of the economy about six months ahead, stood at 111.6 in September. It stood at 100 in 1996, its base year.

Kmart to emerge from bankruptcy next year

DETROIT -- Kmart Corp. said Monday it plans to emerge from bankruptcy protection as early as the first half of 2003.

The discount retailer also said it plans to complete a five-year business plan by the end of this year and file a plan of reorganization with the bankruptcy court by Feb. 24.

"This timeline is aggressive and will require a lot of hard work in a relatively short period of time, but should be doable," chief executive James B. Adamson said in a statement.

Kmart filed for Chapter 11 protection on Jan. 22 following disappointing holiday sales and a steep decline in its stock price. It has closed 283 stores as part of its restructuring.

Kmart had sales of $1.97 billion for the four-week period ended Sept. 25 and a net loss of $176 million for the month.

One dead, two missing after boat explosion, fire

JUNEAU, Alaska -- A 180-foot fishing vessel exploded and caught fire hundreds of miles off Alaska, fatally injuring at least one crew member, and two people were missing after being thrown overboard, the Coast Guard said. Five people were injured.

The cause of the blast had not been determined.

A mayday from the Galaxy, based in Seattle, was received Sunday by the Coast Guard station on St. Paul Island, about 750 miles southwest of Anchorage, said Coast Guard Chief Petty Officer Roger W. Wetherell in Juneau.

"They reported that some people actually had been blown off the ship and into the water," Wetherell said.

The Galaxy is used to catch and process Pacific cod. It was carrying a crew of 25.

Workers to get notice of 401(k) lockout periods

WASHINGTON -- Starting next year, workers participating in employer-sponsored 401(k) plans will have to receive 30 days notice before they are blocked from accessing their retirement savings accounts while administrative changes are being made.

That's according to a Labor Department regulation issued Monday, which takes effect Jan. 26. A corporate accountability law, inspired by last year's Enron scandal and passed by Congress this summer, required the department to issue the rule.

First big storm of season leaves 10 inches of snow

BROWERVILLE, Minn. -- The Upper Midwest's first significant snowstorm of the season dropped as much as 10 inches of snow on Minnesota, delaying Monday morning school openings.

Snow also fell across northern Wisconsin and into Michigan.

Snowplow crews had to go to work early Monday in parts of Minnesota.

"Pretty wet and sloppy underneath," Browerville Public Works Director Chuck Buhl said. "It was pretty heavy to move, but we adapt pretty well out here."

Schools in Browerville, 115 miles northwest of Minneapolis, opened two hours late because of the 10 inches of snow that made roads slippery. Temperatures were expected to rise into the mid-30s.

-- From wire reports