Mortgage worries spark moderate stock decline
NEW YORK — Stocks posted moderate losses Monday on concerns that the economy's expansion will erode amid troubles in the mortgage industry.
Those concerns were fed by remarks by a pair of Federal Reserve officials. Boston Fed President Eric Rosengren said he is concerned that home foreclosures may worsen as economic growth slows. San Francisco Fed President Janet Yellen said growth in the fourth quarter will be "only very meager" and problems could "spill over" into consumer spending.
The Dow Jones industrial average fell 57.15, or 0.43 percent, to 13,314.57. The S&P 500 lost 8.72, or 0.59 percent, to 1,472.42. The Nasdaq composite index fell 23.83, or 0.90 percent, to 2,637.13.
Homebuilder Lennar sells land to raise cash
MIAMI — Lennar Corp. has sold land in eight states to Morgan Stanley Real Estate at about 40 cents on the dollar, giving the homebuilder a $525 million influx in cash as it continues to pare inventory amid a housing crisis.
Lennar said Friday it formed a land investment venture with Morgan Stanley Real Estate to acquire, develop, manage and sell residential real estate.
The properties include about 11,000 home sites in California, Colorado, Florida, Illinois, Maryland, Massachusetts, Nevada and New Jersey.
AT&T plans to hang up on pay phones in 2008
SAN ANTONIO — AT&T Inc. said Monday it will exit the rapidly shrinking pay phone business by the end of next year.
AT&T will sell 65,000 pay phones in prisons and public places within its original 13-state area before the end of 2008, spokesman Michael Coe said.
AT&T decided to leave pay phones, a tiny portion of the telecommunications company that has 67.3 million wireless subscribers, before they reach the point of being unprofitable, Coe said. AT&T expects the pay phones to be bought by independent operators.
Internet poised to beat radio in '08 ad revenue
NEW YORK — The Internet will overtake radio next year in its share of global advertising spending, a leading advertising forecaster predicted Monday.
ZenithOptimedia said the Internet's share of advertising would rise to 9.4 percent in 2008 from 8.1 percent this year, while radio's share of the ad market would slip to 7.9 percent from 8.2 percent.
The firm does not expect an ad recession next year as several events are expected to boost spending: the U.S. presidential election, the Beijing Olympics and the soccer championships in Europe. It expects global ad spending to grow 6.7 percent in 2008, compared with the 5.3 percent expected in 2007.
FDA: New cold medicine ingredient may not work
WASHINGTON — Evidence is limited that new formulations of over-the-counter cold medications actually relieve nasal congestion, officials said Monday.
The Food and Drug Administration said studies of phenylephrine, an ingredient recently added to many cold medicines, are small, poorly designed and decades old. The agency reviewed data ahead of a meeting later this month on phenylephrine in nasal decongestants.
Manufacturers switched to phenylephrine after Congress passed a law in 2006 requiring that pseudoephedrine products be kept locked behind the counter at pharmacies. The law is aimed at stopping illegal processing of cold medicines into methamphetamine.