Argus-Leader from Sioux Falls, South Dakota • Page 18

www.argusleader.com BUSINE STOCKS OF LOCAL INTEREST Company Close Cho Company close Ctw Citigroup 47.40 Smithfield 28.70 .59 Northwestern 31.52 .09 HSBC 86.30 LodgeNet 14.93 .60 Gateway 2.41 Raven 35.46 Daktronics 39.46 .50 500 2.17 1,305.08 ARGUS LEADER, SIOUX FALLS, S.D. TUESDAY MARCH 21, 2006 6C Dow Nasdaq Industrials 5.12 763 11.274.53 2,314.11 ssOninug M(omm sDDgBnfiDsf lis) Decline might mean slower economy for second half of 2006, analysts say 139.0 The Index of Leading Economic Indicators Seasonally adjusted 1996 100 140 139 138 same month, employers expanded payrolls by 243,000 jobs, far more than expected. When it comes to the sharp downward revision in January's leading economic indicators, economists at High Frequency Economics Ltd. said the data might have been skewed by a drop in aircraft orders not taken into consideration when the January report was first published. "The durables report was not available when the LEI was compiled, so the Conference Board assumed orders for nondefense capital goods were unchanged," according to High Frequency through the first quarter.

We may tick up in the second quarter, and we may tick down in the third quarter," Ken Goldstein, economist at The Conference Board, told The Associated Press. "Growth is going to be a little slower second half of the year." Frank Nothaft, chief economist at the mortgage consolidator Freddie Mac, said some of the growth anticipated for the first half of the year is related to reconstruction efforts in regions hit by hurricanes last year. "This pumps more money into the economy, spurring growth," he said, adding that the slowdown in the later half of 2006 would reflect the series of interest rate increases engineered by the Federal Reserve. The U.S. central bank, concerned about inflation that could hobble the economy, has raised interest rates 14 times since June 2004.

The rate increases have effectively raised borrowing costs for consumers and businesses. The higher rates have already had some effect on housing, where sales of homes have slowed and economists think the Fed will raise rates again later this month. While the index of leading economic indicators dipped in February, the nation's economy saw gains in the jobs market. That Economists on Wall Street had expected the index to decline 0.3 percent in February. The Conference Board said its coincident index, a measure of the current economy, rose 0.3 percent in February, following no change in January and a 0.4 percent increase in December.

In the latest report, the largest negative components were consumer expectations, building permits and stock prices. The positive components included manufacturers' new orders for non-defense capital goods and orders for consumer goods and materials. "Essentially the story is we have got moderate growth BY ALEKSANDRS ROZENS Associated Press NEWYORK-Aclosely watched gauge of future economic activity declined slightly in February following a sharp rise in January, a private research group said Monday. The decline, which follows four months of gains, suggested to some analysts that the nation's economic growth will slow in the second half of the year. The Conference Board said its Index of Leading Economic Indicators fell 0.2 percent in February, following a revised 0.5 percent rise in January.

The January increase had initially been reported at 1.1 percent ,137 36 135 134 133 132 131 130 Change from previous month Feb. Jan. 0.5 Dec. 0.3 FMAMJJASONDJF 2005 2006 AP SOURCE: The Conference Board SUMMER FUEL CONSUMPTION ABOUTTHECW WHAT: A new network that merges WB and UPN together under the agree Industry might not be able to meet ethanol demands ment of parent companies CBS Corp. and Warner Bros.

Entertainment WHERE: Available on the KWSD WB affiliate channel 36. WHEN: Programming debuts in September. -lb U. Fatheadz find fit for glasses Big-boned CEO now seeks stores BY DANA KNIGHT The Indianapolis Star INDIANAPOLIS-Forpeo-ple who don't have fat heads, Rico Elmore's business venture may seem a bit bone-headed. But for people who do have plumper noggins, the idea is pure genius.

i Indianapolis-based Fatheadz Sunglasses has hit on a niche selling shades for big heads that just won't fit the average pair of glasses. "After we got going with this, we suddenly found out that everybody knows somebody who has a fat head -somebody who needs this product," said Fatheadz' chief executive Elmore, 32. The company hasn't officially launched, and not one pair of sunglasses has hit a store shelf, yet already its client list includes the entire starting offensive line of the Indianapolis Colts; Rupert Boneham, the famous "Survivor," and Tim Sylvia, former ultimate fighting heavyweight champion. Fatheadz will launch its product officially in April. Elmore said he will spend the next year pushing to get the sunglasses into retail stores such as Dick's Sporting Goods, Gander Mountain and Bass Pro Shops.

KWSD-36 gets right to merged WB-UPN New channel will meld best of both networks 1 5 -t. u-itUj I 7 BY KELLY HILDEBRANDT khildebrargusleader.com This fall, fans of TV shows that once aired on the WB and UPN networks can tune into KWSD, channel 36, to see if their favorite shows made the cut The local WB affiliate won the rights to air the nation's newest network -The CW. The merger between WB and UPN was announced in early 2006 by CBS Corp. and Warner Bros. Entertainment, the parent companies of the two networks.

The program schedule, which will debut this fall, hasn't been announced but is supposed to meld the networks' best programs, such as "Everybody Hates Chris" and "America's Next Top Model." The network will program 30 hours each week over seven days for its affiliate. "We're going to be able to bring the best of WB and the best of UPN to the Sioux Falls area," said Jim Simpson, the regional general manager for Rapid Broadcasting, the affiliate for WB in Sioux Falls. "We foresee great things with The CW. We think this is nothing but positive for us and the people of Sioux Falls." Rapid Broadcasting has four other stations in Sioux Falls and Rapid City. In Sioux Falls, KWSD is a full-power station broadcast signal that also has a digital channel, which means it is available to virtually all cable systems in the eastern half of the state with a market of about 250,000, said Mike Smith, sales manager for KWSD in Sioux Falls.

See CW, page 5C CHARLIE NEIBERGALL AP A tanker truck Is loaded with ethanol last summer at the Golden Grain Energy ethanol plant In Mason City, Iowa, In this file photo. Some analysts worry that the ethanol Industry might not have enough capacity to meet demand this summer. MTBE phaseout will pressure biofuels, raise cost U.S. fuel ethanol production WASHINGTON After a spurt of good 3 5 tiIItori gallons fortune, the fledgling U.S. ethanol industry 3.4 billion gallons is anticipating some growing pains that 3.0 could bring it unwanted attention this sum- mer.

Ethanol's public profile rose significantly for the better last July when Congress 2.0 passed an energy bill that mandates the doubling of biofuels output by 2012. In Jan- 1.5 uary, President Bush gave the industry a further boost with a strong endorsement in 1-0 his State of the Union speech. And with the nc imminent phaseout of a petrochemical .5 i added to gasoline to reduce tailpipe emis- sions, more U.S. motorists will depend on 0 the corn-derived fuel than ever before. 1980 82 84 86 88 90 92 94 96 98 00 02 04 But there's trouble loommge ethanol SOURCE: Renewable Fuels Association AP industry might not be ready to satisfy the expected summertime jump in demand, because of railroad, trucking and other dis- angry letter to the Energy Department last And by crimping the overall supply of tribution bottlenecks.

The report also high- week, questioning the overall thoroughness motor fuel, this could contribute to a spike lighted concerns about the limited output of its research and accusing it of creating in gasoline pump prices at the start of the capacity of an industry still in its infancy. "unnecessary fears in the marketplace." country's peak driving season. The Renewable Fuels Association, a trade Still, ethanol-related worries hang over That, at least, is the view of the Energy group representing ethanol producers such the U.S. market, contributing to a 42-cent- Department, which issued a report last as Archer Daniels Midland Co. and Pacific per-gallon increase in unleaded gasoline month detailing the challenges Midwestern Ethanol says the industry's challenges futures since mid-February.

There are ethanol producers will have in getting their and their influence on gasoline prices are fuel to key markets along the East Coast being overblown. The association sent an See ETHANOL, page 5C ALAN PETERSIME THE INDIANAPOLIS STAR Fatheadz sunglasses frames are ready for assembly at Integrity Moldings Co. In Seymour, Ind. Business In Brief Banker gets new trial Where's the beef? 1 Top producers worldwide of Enron bent rules, accountant says i HOUSTON Enron tried to dodge accounting rules by dropping a plan to sell assets in a failed water business, a former Arthur Andersen accountant said Monday. beef and veal, in millions of metric tons, 2005: NEW YORK -High-powered technology banker Frank Quattrone was granted a new trial Monday when a federal appeals court tossed out his conviction on charges he obstructed a government probe of stock offerings at the height of the dot-com boom.

The 2nd U.S. Circuit Court of Appeals in Manhattan said the Dr. Michael Geist, Canada Research chair of Internet and E-commerce Law at the University of Ottawa, said the study shows that those who don't buy much music don't do so because it's freely available but because there are other things they can do with their money. Ex-Qwest accountant says feds threatened lawsuit DENVER A former Qwest accountant accused federal regulators Monday of filing fraud charges against him because he did not "spill the beans" to their satisfaction against ex-Chief Executive Officer Joseph Nacchio and other former executives. James Kozlowski's lawyer also contended that Securities and Exchange Commission representatives wanted to make a statement about fraudulent accounting when they filed the lawsuit.

From wire reports CONTACT US Business Editor Jim Cheesman 331-2316 jcheesmanargusleader.com Frank Quattrone John Suit, who oversaw the books on Enron's Azurix water venture, told jurors the energy trading company could avoid a writedown of hundreds of millions of dollars by promoting, instead, a $1 billion growth strategy for the unit. "By merely standing up and making the assertion that the strategy exists somehow makes evidence was sufficient to sustain a conviction but that the May 2004 verdict must be thrown out because the jury was improperly instructed on how to interpret the law. John Suit Source: U.S. Foreign Agricultural Service Graphic: Pal Carr, Paul Trap O2006KRT File sharers also buy most music The Canadian Recording Industry Association has reported research that shows that people who download music from file sharing services are also the same people who tend to buy the most music. iff the problem go away," he testified, explaining his view of Enron's plan.

Enron founder Kenneth Lay is accused of improperly avoiding writedowns; former Chief Executive Officer Jeffrey Skilling of misusing reserves..