Nation digest 10/26/02

Durable-goods orders fall while home sales rise

WASHINGTON -- Orders to U.S. factories for big-ticket durable goods plunged 5.9 percent in September, the biggest decline in 10 months, the government reported Friday.

The drop in orders was much sharper than the 2 percent decline that many economists had been expecting.

However, some sectors of the economy are doing well. Two new reports Friday showed that sales of new homes rose by 0.4 percent in September to a record annual rate of 1.021 million. Sales of existing homes were also up last month, increasing 1.9 percent to an annual rate of 5.40 million units, according to a report from the National Association of Realtors.

Both new and existing home sales are on track to set new records this year, a boom that has been spurred by the lowest mortgage rates in decades.

Pentagon to test device to 'play' taps at funerals

WASHINGTON -- The Pentagon, chronically short of musicians to play taps at military funerals, is going to test the use of a new "push button" bugle that can be operated by an honor guard member.

A small digital audio device inserted into the bell of the bugle plays a rendition of taps that the Pentagon says is "virtually indistinguishable" from a live bugler. The person using the bugle merely pushes a button and holds the bugle to his or her lips.

The Pentagon has been struggling for years to cope with its shortage of musicians for funerals. The ceremonial bugle will not be used when a military musician is available.

The Pentagon plans to start a six-month test of the ceremonial bugle in Missouri on Nov. 7.

Microsoft ordered to remove ad decals

NEW YORK -- Butterflies are free. But Microsoft Corp. is breaking the law when it gets free advertising by scattering plastic butterfly decals around town, city officials said.

The Transportation Department on Thursday ordered Microsoft to stop an advertising campaign that the department says has defaced public property.

The decals began appearing Thursday as part of an advertising campaign for the company's Internet service.

It was possible, DOT spokesman Tom Cocola said, that corporations are not aware that this kind of promotion is illegal.

"We give them the benefit of a doubt," he said, adding that Nike and Snapple conducted similar advertising recently.

-- From wire reports