Economic reports cause investors to sell stocks

A string of reminders that the economy is still struggling as well as disappointing earnings at Exxon Mobil irked investors Thursday, and pushed stocks sharply lower. The Dow Jones industrials tumbled nearly 230 points, their first triple-digit loss in nearly two weeks.

Two discouraging economic reports a drop in construction spending and a weak reading of national business activity came a day after an unexpectedly steep decline in gross domestic product.

Exxon earnings dropped by 41 percent, the company said Thursday.

Aviation

Bombardier to cut jobs at Wichita facility

Facing still slower demand for business jets, Bombardier Aerospace has cut about 150 jobs, bringing to 600 the number of jobs eliminated at the company’s Wichita plant since September.

“Sales are flat,” company spokesman Dave Franson said. “The market is not coming back as quickly as we had hoped.”

After this week’s cuts, Bombardier’s Wichita employment will drop to around 2,700. Most of the latest round of cuts, about 115, are in production. Company officials informed workers of the layoffs Tuesday.

The weakened economy, exacerbated by the 9-11 attacks, has hit the Wichita aviation market hard. Boeing Co. is eliminating between 5,000 and 5,200 jobs in Wichita, while Raytheon Aircraft has cut 2,000 positions.

Utility

Williams shares rise on news of asset sales

Shares of Williams Cos. surged nearly 29 percent Thursday after the troubled energy company announced asset sales and financing agreements that will give it access to $3.4 billion in much-needed cash and credit.

Tulsa, Okla.-based Williams obtained a $1.1 billion line of credit that expands on an existing $700 credit facility as well as a $900 million loan from Lehman Brothers Holdings Inc. and Warren Buffett’s Berkshire Hathaway Inc.

It also agreed to sell 98 percent of its interests in its 7,226-mile Mid-America Pipeline and 98 percent of its 1,281-mile Seminole Pipeline to Enterprise Products Partners LP of Houston for $1.2 billion.

Bankruptcy

Court allows Vanguard to seek new financing

Vanguard Airlines, which abruptly halted operations this week and filed for court protection from creditors, will proceed with a last-ditch effort to get its planes flying again.

On Wednesday, a day after the Chapter 11 bankruptcy reorganization filing, a bankruptcy judge approved the airline’s request to use about $450,000 over the next eight days to try to resume operations.

Nearly all of the company’s 1,100 employees were laid off Tuesday, but about 80 will continue working into next week to seek financing that could save Vanguard, said Daniel Flanigan, the company’s bankruptcy lawyer.