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Show Che Salt LakeTribune BUSINESS MSAVVY CONSUMER, D-5 MIDILBERT, D-5 Market Indicators Dow Industrials | | Utah homebuilders pounded nails furiously during the first quarter of 1999 Stable prices and rising incomes NASDAQ contributed to a flurry of activity during the quarter, said James A Wood, a senior researchanalyst with the Bureau of Economic and Busi- ness Research at the University of Utah's silo. Performers TheBloomberg Utah “The housing market continuesto Utah Index measures the show surprising strength.” Wood said in the bureau’s Utah Construc- stock performance ofthe state's major publicly mpanies. tion Report for the January/March period. “Both single-family and mul- tifamily construction abovelast year.” activity are Homebuildersapplied for permits St. George Firm to Consult On TWA Retirement Plan Chairman Hyrum Smith bested larger investmentconsulting firms to gain the contract by promisingflexibility SH&APresident Lon Henderson said Friday Large, national firms often recom- mendcertain key fund managersas- sociated in some way with their firms when advisingclients about retirement-fund investments, Smith said. But SH&Ais independent, and thereforeoffers a broader perspective, he said. We consider ourselves talent scouts” capable of building a “dream team” of investment managers, Henderson said. Larry Cleveland, TWAdirector of benefits, said in a statement that his growing communities — West Jordan, Draper and West ValleyCity ing from $322.9 million to $238.6 million, Woodreported. countedfor one of every five homes receiving building permits in the Bill Martin said that while commercial construction has softened, many highly concentrated in afewrapidly Combined, those three cities ac- state duringthe first quarter Yet even with homeownership in Utah reaching its highest level in years — the state ranks seventh na- _Its value dropped 26.1 percent, fall- Colliers Commerce CRG broker 7 on: ang. partof a normalbuildingcycle 2.971 “Developers have just growna little _more cautious lately,” Martin | Five-Yearl leased beforestarting another,” he Ss “We could probably put up twice the number we are seeing now but we are run- ning intoresistancein a lot of comBut to put up homes in that price approvethose developments. Nonresidential construction did Last year developers might have building and waiting for it to get said. Yet, even there, things are not all bad, Woodsaid ‘Average Evans & Sutherland also indicated t expects new orders to contributeto tract delays shifted some expec Strong employment reports contribute to financial surge BY LORI JOHNSTON BY E THE ASSOCIATED PRESS THE enthusiasm and capped a week of ex- traordinary strength on Wall Street. The Dow Jonesindustrial average rose 72.82 to close at 11,139.24, easily topping its previous record close of 11,107.19, set May 13. For the week, the Dowrose 5.56 percent or 586.68 points, the biggest weekly point gain in its 103year history Broader stock indicators extended a string of records. The Standard & Poor's 500 rose 10.26 to close at 1,391.22, and the Nasdaq composite index rose 34.84 to 2,741.02. Both indexesset new closing highs Wednesday, Thursday and Friday Stocks marched higher Friday as the Labor Department said American busi- nesses created a total of 268,000 new jobs in June, with all industries except manufacturing and mining posting solid ains, The yield on the benchmark 30-year Treasury bond remained steady at 6.0 percent, setting the stage for a sixth con- secutive gain in the stock market. ‘The markets blew right past it,” said Ricky Harrington, technical analyst with WachoviaSecurities in Charlotte, N.O, Harringtonsaid market indexes were holding on to aninflux of money from Braille-embossed buttons. mutual fund managers, whosettled their ployment chances of the 750,000 blind portfolios earlier this week as the second quarter drew to a close Wednesday Investors, meanwhile, continue to wel come strong economic news, discounting Many blind people once worked 4 and backlog increased significantly and the overall outlook is for substan. tial impr ment in the second half, he said more computer skills. tives. But voice mail and e-mail have changed the job description. requiring And software that requires the user to move around the screen with a mouse andclick onicons is nearly impossible for blind people tc Echelon Awarded Grant Jobless Rate Echelon Research Laboratories Inc to develop technology for use in ing cancer and di: | The company received a Small Business Technology Transfer grant The two-year granttotals more than $500,000 ERL will use the money to develop ways for early detection of cancer and determineif specific cancer cells are likely to spread Glenn D. Prestwich, vice p ident Alan Mothner/The Associated Press The Americans with Disabilities Act did not end discrimination against blind people, said Barbara Pierce of the National Federation of the Blind. Americans ceptionists, takingdictation and answer ing the phone for managers and execu of Salt Lake City has wona grant from the National Institutes of Health Percentofcivilian labor force that is unemployed, seasonally ed ron Pn Peg Halverson, who has beenout of a job for the past two years. said she could use software that includes graphics if someonewould put it in a blind-friendly format that relies mostly on keystroke commands and speaks out loud to the BY MERRILL GOOZNER CHICAGC TRIBUNE WASHINGTON The U.S. jobs ma. chine kicked into high gear again last monthand workers : ted slightly, the Labor Dern st re ported Friday, renewing fears that the economy may be growing too fast for its U.S. economy added t of medicinal chemistry at the 268,000 new jobs last month, significantly more than the rsity of Utah indedin 1997, ERL spec in chemicals shown to play a average of the first five months of the year The latest jobless report is raising new concerns that tight labor markets will force the Federal Reserve Boardto re- The is in Research Park near the considerits neutral stanceon raising in terest rates whenit meets next month of L Financial Markets Closed Earlier this week, the Fed surprisedfi Monthly percentage of U.S. workers who are looking for jobs: indicates growth (or shrinkage) of business and industry. Knight Ridder Tribune user toalert himorher to what is onthe screen I want to be employed. I want to con. tribute to society,” said Halverson, 44 See UNEMPLOYMENT. Page D-5 thefact that it could translateintoinfla tion OnFriday, cyclical stocks, which per: formbest during times of economic expansion, rose broadly. Financial stocks continued to gain strength fromthein terest rate environment. American Ex. press, up 45 to 137%, was the strongest Dow component Increases in Wages and Employment Raise Red Flags owngood Though the overall unemployment rate actually movedupatenth of a per entage point to 4.3 percent in June, the de US financial markets, as well as government offices and banks, will be loved Monday in observance of Inde result, there will be no Business section in Tuesda: Tribune N GLANTON SOCIATED PRESS NEWYORK — Stocksrose to record highs in a quiet session Friday as a strong employmentreportfed investors’ “reasonable” steps to accom- fourth quarter,” said James Oyler president andchief executiveofficer In addition, second-quarter orders Final results for the quarter will be reported on July 15 % Experts blame computer mouse, reduction ofBraille education available with i ee Bureau of Economic, Wall Street Sets Records But other technology has hurt the em second-quarter revenue into the $154,084.86 values in millions Pre-Holiday things much ¢ er for blind people Converting text Braille, once a pains taking process, can now be done by com puters, and some office equipm an increase in its backlog. In our simulation business, ¢ $313,733.2 RhondaHailes Maylett ‘The S)alt LakeTribune underemployed in relation to their quali fications, according to the Labor Depart ment Over the years technology has made ing of contracts inits simulation business. the company said 3,480 highest January-to-March total in Utah’s construction history. blind whoare unemployed, 30 percent of those who are working are considered to 40 cents a share Results for the quarter were affect ——— 322,991 8 238,637.7 | of $238.6 million ranks as the second modate disabled people In addition to the 70 percent of the ed by continued softness in its work station graphics business andthe tim: 413,895.86 1,250.3 4216 4,528 ~ Blind Left Out Of America’s Job Boom ers to take for the quarter andaloss of 35 cents 9 0,883: eee levels of activity, the 1999 valuation passed in 1990. bans discrimination basedon disability and requires employ The Salt Lake City-based company 80,876.8 a aoe me andBusiness Research the National Federation of the Blind. which is holding its annual convention in Atlanta through Tuesday. The act xpects to report revenue in the range of $44 million to $47 million 59,520.4 135,269.9 “Compared to last year, 1999 is said Barbara Pierce, spokeswoman for nary results. $52,4206- down. But compared to historical The Americans with Disabilities Act seems to have had no impact on this reportedits second-quarter prelimi 4 Source: University of Utah blind has remainedstagnant for about a to $12.38 cents on Friday after 250,261.9 built 01 to find tenants before a building was completed “Now, they’re putting up one range,” Biesinger said. - 4.446 390,134.7 | 4270 |351,5900 said Taz Biesinger of the Utah Homebuilders Association. “There is a huge demand for homesin the $100,000 to $140,000 ship — pent-up demandstill exists," many communities are reluctant to decade, according to the U.S. Labor Department Shares of Evans & Sutherland s110,8670 | 126,135.7 2,483 | 202,498:7 sai 8 residential units were valued at $481.3 million Wood noted, however, that Utah’s Inc the maker of graphics systems for computer workstations and simulators i404 4567 — in the real estate industryview it as tionallyin the rate of homeowner- range, builders must construct smaller houses on smaller lots. And While the nation’s overall unemployment rateis at a 29-year low of 4.2 per. cent, the level of joblessness among the Computer Corp. fell $1.63, or 12 per. T Residential Nonresidential NewDein Construction oe) eats Values pure 4999 portant, the computer mouse. Sharesof S.L. Firm Fall : Number Of tight that many employers are begging The company’s other major client is St. George-based Skywest Airlines U not fare as well during the quarter. munities.” a result of the TWA contract, Henderson said. company is for workers, 70 percent of blind Americans who want a job can't find one, and advocates blame discrimination, a drop in Brailleliteracy and, perhaps most im ment plan and lower investment fees to participants. SH&Alikely will add employees as in cellular communicats boom ATLANTA — In a labor market so company chose SH&A hoping the firm's approach will improvethefi- nancial performance of TWA’s retire- role construction 1999, a 7.4 percent increase over the same period a year earlier. Those for Trans World Airlines’ $180 million 401(k) retirement plan The eight-person firm partially owned by Franklin Covey Co. Vice- residential to build 4,528 homesand apartments during the first three months of Smith Henderson and Associates of St. Georgesaid it has earned a contract to provide consulting serv Prestwich is chairmanof Permit-Authorized Construction In Utah January through March 1990-1999 BY STEVEN OBERBECK THESALT LAKE TRIBUNE of research, will lead thi JULY 3, 1999 I BUSINESS GLANCE,D-7 Three fast-growingcities fuel a surprising increase from 1998 | | S&P 500 D-4 Home-Building Up 7 Percentin Ist Quarter | | NYSE Ml TECH CONNECTION, D-6 Page nancial markets by removing its bias toward further tightening of rates after raising its benchmark federal fundsrate 4 quarter-point to 5 percent Thesharpgain in new jobs was signifi cantly higher than Wall Street had ex pected, as was the average hourly wage for nonsupervisory workers, which rose 5 cents to $13.23 an hour, a 0.4 percent increase. Therejuvenationof thejob market af. ter a one-monthlull, and theslight up. tick in wages, suggested to some Fed watchers that the red flags will go up again at the nation’s central bank, which has been keeping a close eye on labor markets as the key indicator of whether the economy is overheating ‘This report will force the Fed to re- the sharpgains inservices, finance, re tail trade and construction masked the continuing declinein the nation’s manu- facturing sector. Goods producers shed 35,000 jobs and have now lost a half mil. lionjobssinceearly last year. Utah's unemploymentrate of 3.2 per cent in June was unchanged from a month earlier, Utah Department of Workforce Services chief economist Ken Jensensaid Friday He said 36,000 Utahns were unemployed last month, 4,900 fewer than in think its neutral stance later this sum said Carl Tannenbaum, economist Salle National Bank/ABN AMRO. cent 268,000 people’? There's nobody else with a pulseout thereto hire labor-marketconditions — theyear-over rateof increasein the numberof jobs — Where did employers find another Though theinflation-wary trumpeted thelatest government numbersto justify their fears, the jobs report also provided plenty of ammunition for those who ar gue that wage-push inflationary pres sure still isn't a problem for the U.S economy If unemployment is steady, that's just fine,” said James Glassman, chief do mestic economist at Chase Securities Inc. Although the economy created more than a quarter million new jobs in June June 1998, when the rate was 3.9 per: Thestate's other primary indicator of was 2.6 percent for June. Utah's 60,000 employers created 27,000 new jobs from June 1998 to June ofthis year The percentage growth represents a decrease: It had been 3 percent for the last 10 monthsof 1998 Although Utah's rate of job growth has not beenthis slow since early 1992 job production appears adequatefor the supply of labor available, Jensen said tah's labor market has been ex ending modestly,” he said |
