Stock prices little changedThe stock market hovered around...

BUSINESS DIGEST

September 11, 1992

Stock prices little changed

The stock market hovered around yesterday's closing levels in early trading today, pausing after the rally of the past two sessions.

The Dow Jones average of 30 industrials was unchanged at 3,305.16 after the first half hour of trading.

The day began with some favorable, but expected, news on inflation. The Labor Department reported that the producer price JTC index of finished goods edged up 0.1 percent in August.

Analysts said that news reinforced the Street's optimism that inflation remains subdued.

But stock traders seemed to have other uncertainties on their minds, including recent tumult in European interest rates and currency markets.

Producer prices up

Prices paid by wholesalers advanced a barely perceptible 0.1 percent in August despite big increases in the cost of fruits and vegetables, the government said today.

The tiny increase in the Labor Department's Producer Price Index matched the gain in July and was attributed to drops in the cost of gasoline and fuel oil, tobacco and children's clothing.

For the year so far, prices have advanced at an annual rate of just 1.7 percent in the face of a stagnant economy and weak demand. Last year, prices actually fell 0.1 percent, but that number was heavily influenced by the drop in oil prices that came with the end of the Persian Gulf War.

Environmental losses

Environmental Elements Corp. announced yesterday that it would lose money for the last nine months of its fiscal year, blaming the sour economy and the fact that utilities have been slow to place orders for anti-pollution equipment.

The company said in July that it expected to make money in the last nine months of its fiscal year, which ends in March. The company lost $1.7 million, or 26 cents a share, in the quarter that ended in June because of technical problems on a contract to install new technology, company spokesman John S. Lalley Jr. said.

He said the loss for the rest of the year would be smaller than its first-quarter loss.

TWA deal approved

A U.S. Bankruptcy Court judge approved yesterday the sale of a large stake in Trans World Airlines to its three unions, a step toward the company's emergence from bankruptcy.

Under the agreement, unions would give up 15 percent in wages, benefits and other concessions in exchange for 45 percent of the airline. Creditors would get a 55 percent stake for forgiving much of TWA's debt.

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