New York

Wall Street retreats on rising oil prices

NEW YORK Stocks retreated from historically lofty levels Monday as rising oil prices chilled investor enthusiasm for strong earnings reports and new takeover activity. The Dow Jones industrials came within 17 points of 13,000 before pulling back.

The blue chip index hit a new trading high of 12,983.92 after British bank Barclays PLC said it will acquire Dutch bank ABN Amro NV for $91.16 billion, and British drug maker AstraZeneca PLC said it will buy U.S. drug maker MedImmune Inc. for $15.6 billion. But the market was still vulnerable to a downturn. Corporate growth is slower than it has been in years, though, and investors grew cautious as they awaited more clues about the direction of the economy. And so Monday, a spike in crude oil prices above $65 a barrel reignited inflation worries, and reminded Wall Street that other economic obstacles exist as well, such as a weak dollar and slow housing market.

The Dow Jones industrial average fell 42.58, or 0.33 percent, to 12.919.40. On Friday, the Dow rose more than 150 points to 12,961.98, posting its seventh straight gain and third straight record close. The blue chip index appears to have recovered from its stumble in late February, and has hit 34 record closes since the beginning of October last year.

The broader Standard & Poor's 500 index fell 3.42, or 0.23 percent, to 1,480.93. The index is about 3 percent away from its record close of 1,527.46, reached in March 2000.

The technology-dominated Nasdaq composite index lost 2.72, or 0.11 percent, to 2,523.67. It stands at about half its record closing level of 5,048.62, also reached in March 2000.

Michigan

Ford creates senior-level environmental exec

DETROIT Ford Motor Co. has promoted Susan M. Cischke to a senior-level management position heading the automaker's global environmental sustainability efforts, the company announced Monday.

In a conference call with reporters, Chief Executive Alan Mulally said Cischke will be responsible for charting Ford's course on future products and manufacturing techniques as they relate to energy consumption and environmental protection.

Cischke formerly was Ford's top environmental and safety officer, serving as vice president of environmental and safety engineering. In her new job, she will be a member of the company's operating committee and report directly to Mulally instead of a group vice president. Her new title is senior vice president, sustainability, environment and safety engineering.

Tennessee

Genesco spurns bid from Foot Locker

NASHVILLE Genesco Inc. rejected Foot Locker Inc.'s $1.2 billion takeover offer on Monday, but Foot Locker isn't ruling out the possibility of raising its bid for its footwear and accessories rival.

Foot Locker had proposed paying $46 a share for Genesco in a deal that would have united its Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, Champs Sports and Footquarters chains with Genesco's Journeys, Lids, Hat World and Underground Station brands.

After consulting with financial adviser Goldman, Sachs & Co. and legal adviser Bass, Berry & Sims PLC, Nashville-based Genesco said in a letter to Foot Locker that the offer undervalued the company and that previous discussions about a buyout had mentioned prices between $48 and $50 per share.

A Foot Locker spokesman wouldn't comment on Genesco's decision.

GEORGIA

Delta narrows quarterly loss on rise in sales

ATLANTA Delta Air Lines Inc., a week away from exiting bankruptcy, reported Monday that it narrowed its loss in the first quarter on an 11.4 percent rise in sales.

The nation's third-largest carrier said it lost $130 million in the three months ending March 31, compared with a loss of $2.07 billion for the same period a year ago. The year-ago loss included $2 million in dividends that accrued for preferred shareholders.

Excluding reorganization and special items, Delta said it lost $6 million in the latest quarter.

Delta's balance sheet did not list per-share figures.

Revenue in the first quarter rose to $4.14 billion, compared with $3.72 billion for the same period a year ago.

As of March 31, Delta had $2.9 billion in unrestricted cash, cash equivalents and short-term investments.

Atlanta-based Delta, which filed for bankruptcy protection on Sept. 14, 2005, is expected to emerge from Chapter 11 on April 30. Its existing stock will be canceled, and it will issue new shares to pay creditors and generate new investors.

A confirmation hearing on its reorganization plan is scheduled for Wednesday in U.S. Bankruptcy Court in New York. An overwhelming majority of creditors have voted to approve the plan, which values Delta at $9.4 billion to $12 billion upon emergence from Chapter 11. Delta's new stock is expected to begin trading in early May.

Illinois

Chicago Tribune, L.A. Times to cut more jobs

CHICAGO The Chicago Tribune and the Los Angeles Times disclosed plans Monday to reduce their staffs by as many as a combined 250 jobs, the latest cutbacks in a newspaper industry reeling from a falloff in advertising and circulation.

The actions by Tribune Co.'s two largest dailies, which had been expected for months, come on top of earlier cutbacks by both papers.

The Times said it hoped to cut its staff of 2,625 by up to 150 employees, or about 5 percent. The Chicago Tribune said it intends to trim its staff by as many as 100, or 3 percent.

The company will make the cuts by a mix of closing vacant positions, attrition, buyouts and layoffs.