Economic indicators up

A gauge of economic activity improved slightly in June for the third straight month, buttressing the view that the nation is on the verge of a recovery.

The Conference Board reported Monday that its Index of Leading Economic Indicators rose 0.1 percent in June to 111.8, in line with analysts’ expectations.

However, with high unemployment and weakness in the manufacturing sector, economists said it was too soon to know whether the United States was about to enter a period of steady economic growth.

The leading index, which rose 1.1 percent in May and 0.1 percent in April, is supposed to measure where the overall U.S. economy is headed in the next three to six months. It stood at 100 in 1996, its base year.

Lawsuit

Stewart lawyers seek investigation of leaks

Martha Stewart’s lawyers asked a federal judge Monday to order an investigation into who leaked details of her indictment to the news media before the grand jury returned the formal charges.

U.S. District Judge Miriam Goldman Cedarbaum appeared skeptical but said she would consider the request.

News reports before the June 4 indictment, quoting anonymous sources, accurately predicted the home-decorating maven would be charged with obstruction of justice and conspiracy, and not with the harder-to-prove offense of insider trading.

Stewart’s lawyers said the leaks might have influenced the grand jury’s eventual decision and violated federal rules that prohibit making grand jury proceedings public.

Aviation

Southwest earnings soar

Southwest Airlines Co. more than doubled its second-quarter net income under tough conditions, thanks in part to federal reimbursements for airport security fees, although the low-fare carrier would have reported a profit without the help.

The Dallas-based airline, whose low-cost structure is the envy of the industry, said it also benefited from capacity reductions made by its competitors, who are struggling to regain profitability.

With the federal funds, Dallas-based Southwest posted a profit of $246 million, or 30 cents per share, compared with second-quarter 2002 net income of $102 million, or 13 cents per share.

Analysts surveyed by Thomson First Call expected earnings of 12 cents per share.

Telecommunications

Sprint to launch wireless ‘hot spots’

Sprint Corp. announced plans Monday to begin offering high-speed wireless Internet access at more than 800 locations throughout the country within the next few months.

The new service, called PCS Wi-Fi Access, will let customers access the Internet through a network of wireless “hot spot” zones either built and managed by Sprint or available to its customers through roaming agreements with other providers.

The 800 locations where Sprint plans to install PCS Wi-Fi Access by the end of the summer include such public locations as airports, convention centers and hotels. More than 2,100 PCS Wi-Fi Access hot spots are planned by the end of 2003, the company said. Prices will be announced when Sprint launches the service.