Stocks fall on outlooks from Microsoft, IBM

Wall Street slid to its first weekly loss in 2003 Friday, as sluggish outlooks from Microsoft and IBM fed investor pessimism about the economy and sent stocks lower.

The tech-focused Nasdaq suffered its biggest loss in more than five weeks, while the three main gauges all fell to their lowest levels since Dec. 31, before investors started picking up stocks on hopes of better market prospects for the new year.

For the week, the three gauges snapped a two-week winning streak, with the Dow losing 2.3 percent, the Nasdaq declining 4.9 percent, and the S&P 500 falling 2.8 percent.

Above, specialist Mark Wagner points to a screen as he works on the floor of the New York Stock Exchange.

Westar: Sale of ONEOK stock OK’d by state regulators

State regulators on Friday approved Westar Energy Inc.’s proposal to sell a portion of its stake in an Oklahoma-based energy company.

Under the plan, Westar would receive $250 million by selling a portion of the shares it owns in ONEOK Inc., Okla., natural gas company, back to ONEOK. Westar owns 44.7 percent of ONEOK, which provides natural gas in Kansas as Kansas Gas Service Company.

The Kansas Corporation Commission approved the transaction in an order that takes effect Feb. 4.

Shares of Westar rose 23 cents in regular trading on the New York Stock Exchange to close Friday at $11.18. ONEOK fell 38 cents, closing at $17.30.

Aviation: Government approves alliance between airlines

The government on Friday OK’d an alliance between Delta, Northwest and Continental airlines that would allow them to sell seats on each others’ flights if they agree to rules aimed at keeping air travel competitive.

Low-fare airlines lobbied against the deal, calling it a virtual merger among the third-, fourth- and fifth-largest U.S. carriers. Eight state attorneys general also opposed the agreement because they said it could stifle competition, raise prices and hurt service.

The agreement, called a code-sharing alliance, allows the airlines to offer more destinations without flying more planes and offer reciprocal perks such as frequent flier miles.

Wall Street: GE earnings drop

General Electric Co. said Friday its earnings fell 21 percent in the fourth quarter despite a rise in revenue, but still matched Wall Street expectations.

The industrial, media and financial services conglomerate earned $3.1 billion, or 31 cents per share, in the last three months of 2002 compared with $3.9 billion, or 39 cents per share, a year earlier.