Oil futures climbed to a new record near $143 a barrel Friday as the dollar weakened against the euro, confirming expectations that the falling greenback, a major factor in crude’s stratospheric rise, will extend its decline and add to oil’s appeal. Retail gas prices inched lower overnight, but are likely to resume their own trek into record territory now that oil futures have broken out of the trading range where they had been for nearly three weeks.
Toyota could overtake GM
Toyota Motor Corp. could overtake General Motors Corp. in monthly U.S. sales for the first time in June, but the victory could be a hollow one as the weak economy continues to pummel the auto industry and even Toyota struggles to meet U.S. consumers’ sudden and insatiable demand for hybrid cars. Analysts are predicting another double-digit dip in June sales, in large part because buyers are shunning big vehicles.
KB Homes reports continued declines
KB Home’s latest quarterly results capped a week of discouraging trends for the homebuilding sector Friday. The Los Angeles-based builder reported a larger second-quarter loss and a 55 percent drop in revenue. And the housing slump continued to eat away at the value of its assets, prompting it to book charges to account for the lower value of unsold homes, joint venture deals and land option contracts. KB also saw sharp declines compared with the year-ago quarter in new orders, home deliveries, average selling price and the value of its backlog of homes.
Northwest pilots OK joint contract
Leaders in the pilot union at Northwest Airlines Corp. approved a tentative joint contract with Delta Air Lines Inc. to take effect after the two airlines combine. The next step is a vote by rank-and-file pilots at both airlines. The Northwest branch of the Air Line Pilots Association says its Master Executive Council voted unanimously to send the proposed contract to pilots for a vote. They still need to work out a merged seniority list, and that can be the toughest part of combining two pilot groups.
AT&T announces Dallas headquarters
AT&T Inc., the nation’s largest telecommunications company, said Friday it is moving its corporate headquarters to Dallas from San Antonio for easier access to customers and operations around the world. AT&T said the move would begin within weeks and is expected to be complete around the end of the year. The move will put AT&T closer to many of its technology suppliers and help cement the Dallas area as a telecom hub. Nokia Corp., Nortel Networks Corp., Ericsson and others have major operations there.
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