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Show BUSINE ss REPORTER: TARA DUGGAN TW DAIl 2 Y HERALD B8 i (www.HiirkThcllerald.coml Rinw si rn mm r ;i. :om Losses widen as Utah sues Albaiison's for repayment stocks drop sharply -District Court is the first the state has had to file to get repayment of a grant from the Industrial Assistance Fund, which is used to entice companies to expand in Utah. But Albertson's spokeswoman Ertharin Cousin said Thursday the company had paid the state back in full in 1997 and that the suit is without merit. The IAF made cash payments totaling $3.5 million in 1995 to American Stores Co. on the condition that it build The Associated Press SALT LAKE CITY ( AP) has sued to force Albertson's Inc. to repay $5.9 million in economic develop- Utah By AMY BALDWIN "I am confident AP Business Writer NEW YORK Wall Street's losses widened its third greatly Thursday steep decline in four sessions as Federal Reserve Chair-tna- n Alan Greenspan confirmed what the stock market already knew and feared: Last week's terrorist attacks have already produced a significant drop in economic activity, and promise to do more damage. The Dow Jones industrial average fell more than 380 points, bringing its loss so far this week to 1,229 points or nearly 13 percent and putting the blue chip index in k line for its biggest drop. point "It's rollercoastering down," said Matt Brown, head of equity management at Wilmington Trust. . The intense selling was expected after a turbulent session Wednesday, when the Dow fell more than 400 points before recovering to a loss of 144. The market's anxiety reappeared Thursday as Greenspan told Congress the terrorist attacks had disrupted the business activity in a number of ways, including a drop in consumer spending and travel and last week's four-da-y shutdown of the stock market. But the Fed chairman also said, "I am confident that we will recover and prosper as we have in the past." The Dow fell 382.92, or 4.4 percent, at 8,376.21, according to preliminary calculations. Unless the blue chips rally substantially today, they are likely to have their k biggest point drop, eclipsing the 821.21 they fell in the week ending March that we will recover and prosper as we have in the past." Alan Greenspan, Federal Reserve Chairman Edge Partners, of last week's terrorist attacks. weighed Uncertainty heavy on Wall Street, where analysts and investors wondered just how much and for how long the economy will suffer as a result of the Sept. 11 attacks, and anxiously awaited to see how the Bush administration will retaliate. "We just don't know the answers," said Ricky Harrington, a technical analyst one-wee- I one-wee- '. : 16. The Dow was trading below 8,400 for the first time since October 1998. I - for Wachovia Securities. Such sentiment was echoed throughout the market. Jon Brorson, director of equities at Northern Trust, said: "We just don't know, and that's the thing." And, Kaltbaum said: "Nobody has a clue what tomorrow morning will bring. And, when there is so much uncertainty, people don't want their money at risk." The market is expected to remain quite vulnerable as companies announce layoffs and profit warnings linked to the attacks in which hijacked airliners leveled the World Trade Center and destroyed part of the Pentagon. Signs of economic fallout have already surfaced as all U.S. airlines have reduced their flight schedules and some have cut thousands of jobs, and as insurance companies have warned that massive payouts will hamper the industry for quite a ment grants. "An agreement was made, taxpayers' money was spent and now, because Albertson's did not meet its obligations, taxpayers deserve their money back," said Paul Murphy, a spokesman for the Utah Attorney General's Office. The lawsuit filed in 3rd ple working there. In May, the company sold the building for $78.5 million. Payments from the IAF a corporate headquarters and employ more than 1,600 people in Salt lake City. In addition, the grocery chain was to have bought goods and serv ices from Utah vendors for at least five years. American Stores built a high rise in downtown Salt Lake City. But just six months after it moved into the building, Albertson's announced plans to buy the Utah company. Shortly thereafter, Albertson's began to transfer or lay off more than 800 peo 620.000-square-fo- are considered grants if recipients meet certain contractual requirements, such as those established for American Stores. Because none of what was promised by American Stores has state the materialized, believes it must be repaid. Hie lawsuit seeks repayment of the original $3.5 million, plus $2.4 million in interest. ot . Microsoft, Justice Department refuse mediator WASHINGTON (AP) -Microsoft and the Justice Department told the new judge in their antitrust case Thursday that they want to stick with private settlement talks and do not need a mediator. Analysts said a settlement could be important to the flagging economy. The computer decline of $2.52. The jointly filed status report was the first substantive discussion by the software giant and the government with US, District Judge Colleen Microsoft and the Justice Department "will continue to seek settlement of this matter industry has continued its decline imminent the despite 6 release of a major update to licrosoft's. flagship Windows operating system. Like the stock market overall, Microsoft's stock dropped Thursday afternoon, to $51.35 per share, a through private discussions, which are ongoing and should continue simultaneously with proceedings addressed to remedy," the report said. The previous trial court judge in the case forced the government and Microsoft" settlement into talks. Those talks collapsed. Kollar-Kotell- Energy Efficient Vinyl WindowsReplacement Maintenance Free Vinyl Shutters 0NIY! A- You'll receive these FREE services! 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In keeping with investors' fears that practically all businesses will be hurt, Thursday's selling was again spread across an array of The broader market was also down, with the Nasdaq composite index falling 56.87, or 3.7 percent, to 1,470.93 and the Standard & Poor's 500 index off 31.56, or 3.1 percent, at 984.54. This is the first time the S&P 500, considered the market's best indicator, has closed below 1,000 since October 1998. "The economy was in bad shape before this event, and this event just magnified everything by thousands," said Gary Kaltbaum, market technician for Investors' sectors. which has Boeing, announced it will cut as many as 30,000 jobs, fell $2.85 to $29.76. 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