Arizona Daily Sun from Flagstaff, Arizona • 4

4 ARIZONA DAILY SUN, Flagstaff, Arizona, Tuesday, January 10, 1995 A I ZONA aiHySuri i Economists say theres trouble ahead count for two-thirds of production costs, increased less than 1 percent last year as measured by average hourly pay. Analysts say a large pool of part-time workers, global competition and constant corporate restructuring and down-sizing have helped keep a lid on wages. But economist Bruce Steinberg of Merrill Lynch Co. said, Though wages have risen at the slowest rate ever measured during 1993-94, the decline in the unemployment rate to 5.4 percent will intensify worries about wage acceleration. The price of many raw materials also has jumped considerably in recent months.

But so far that has not translated into significantly higher costs for finished goods or for consumers. By JAMES II. RUBIN Associated Press Writer WASHINGTON Wholesale prices rose a moderate 1.7 percent in 1994, as a drop in energy prices helped keep inflation under control at years end. The Labor Department reported today that its Producer Price Index edged up 0.2 percent in December to close out the fourth straight year of tame price increases. The PPI rose 0.2 percent in 1993 and 1.6 percent in 1992.

Inflation has remained benign despite a surging economy and declining unemployment that could send wages higher this year. But analysts warned there could be trouble ahead. At some point this has to explode, said economist Astrid Spurred by heavy consumer spending, the gross domestic product the value of all goods and services produced in the United States likely advanced at a 4 percent pace or better for all of last year, analysts say. That would mark the strongest showing in a decade. Fourth-quarter GDP figures will be announced Jan.

27 and are anticipated to be very robust. The growth rate is well above the 2.5 percent pace many analysts and the Federal Reserve believe can be sustained without inflation. Also, the Labor Department reported last week that unemployment dropped to 5.4 percent in December, the lowest level in more than four years. But wage pressures have been largely absent. Labor costs, which ac 0.1 percent the previous month.

The December increase in wholesale prices matched analysts predictions. The Consumer Price Index to be announced Wednesday is expected to provide more good news, showing a rise of around 2.7 percent for 1994. A 1.5 percent drop in energy prices last month after a 2.1 percent jump in November helped offset Decembers 1.6 percent rise in food prices, which shot up after advancing 0.2 percent in November. The increase in food costs was the biggest since they rose 1.8 percent in January 1990. The overall low inflation figures are so surprising because the economy is expanding rapidly even after nearly four years of growth.

Adolfson of MCM Moneywatch in New York City. Weve sort of defied gravity. The stock market rose after the inflation report. The Dow Jones industrial average was up more than 14 points in early trading. Looking backward, inflation has been remarkably well-contained, said Laurence Meyer, head of a forecasting service in St.

Louis. But looking forward everybody is anxious. The December increase in the PPI, which measures inflation pressures before they reach the consumer, followed a 0.5 percent rise in November and a 0.5 percent decline in October. Excluding more volatile food and energy prices, the index rose 0.2 percent in December compared with becoming KWBF KKTM By DAILY SUN STAFF Channel 13s Wednesday night movie tomorrow will be replaced by a night of comedy courtesy of Warner Bros. Channel 13 in Flagstaff tomorrow becomes KWBF, changing its call letters from KKTM.

The new affiliation will add Warner Bros, programming to Channel 13s schedule every Wednesday between 8 p.m. and 10 p.m. The WB Television Network premieres nationwide tomorrow. Companies behind the new network are Time Warners Warner Bros, studio and Tribune Co. Tomorrow nights line-up in SILVER NEW YORK (AP) Handy Hannan nl-ver Tuesday $4,675, up Fabricated $4 698, up $0 010.

The bullion pnee for silver earlier in London $4 6825, up $0.0375 Engelhard $4 690, up Fabncaled $5 065, up $0 011 NY Come silver spot month Monday $4 655, up $0 039. GOLD Selected world gold pnccs, Tuesday. Hong Kong late: $374.25, up $1.70. London morning fixing: $374.10, up $1.70. Ixmdon afternoon fixing: $374.10, up $1.70.

London late: $374.85, up $2.90. Pans afternoon fixing: $373.25, up $1.25. Frankfurt fixing: $374.15, up .50. Zurich late afternoon: $373.75, up $374 25 aslced NY Handy Harman: $374.10, up $1.70. NY Handy Harman fabricated: $375.60, up $1.70.

NY Engelhard: $375.39, up $1.71. NY Engelhard fabricated: $394.16, up $1.80. NY Comex gold spot month close Mon. $373.10, up $1.90. NY Republic National Bank 4 p.m.

Mon. $373.10, up $1.30. New York (AP)-Noon stocks: cludes three comedy shows The Wayans Bros. between 8 p.m. and 8:30 p.m., Unhappily Ever After from 8:30 p.m.

to 9 p.m., and Muscle from 9 p.m. to 10 p.m. Beginning Jan. 18, Muscle will run for a half hour, from 9:30 p.m. to 10 p.m while The Parent Hood will be broadcast from 8:30 p.m.

to 9 p.m. and Muscle will be shown between 9:30 p.m. and 10 p.m. The new line-up will replace Channel 13s normal program schedule of Time Trax, followed by the Wednesday night movie, station manager Chris Makin said. Del Ray Television Company Inc.

the company said. Savings are expected to amount to $40 million a year after that. America West emerged from 38 months under Chapter 11 bankruptcy protection in August. The Phoenix-based company began making money while under bankruptcy court protection and recorded its seventh straight quarterly profit in the third quarter of this year. America West earned $20.3 million in the third quarter, compared with $14.4 million in the same period a year earlier.

Revenue rose to $357.7 million from $335.1 million. The airline has 87 planes serv Airline laying off 1,100 workers Today's market Up 29.95 to 3,891.30 NEW YORK (AP) The stock market was rallying at midday following a government report showing only modest inflation in December. At noon on Wall Street, the Dow Jones industrial average was up 29.95 points at 3,891.30. Volume on the floor of the New York Slock Exchange was 162.36 million shares, compared with 134.20 million at the same time in the previous session. Advancing shares outnumbered declining ones about 8 to 5 on the NYSE, with 1,266 up, 783 down and 745 unchanged.

The NYSE composite index was up 1.43 at 253.01. On the American Stock Exchange, the market value index was up 1.10 at 435.27, while the Nasdaq composite index was up 6.58 at 758.67. The Labor Department said its Producer Price Index edged up 0.2 percent in December, a rise anticipated by private economists. For the year, wholesale prices rose a moderate 1 .7 percent. The bond market moved modestly higher following the news, pushing down interest rates.

Bond investors dislike word of inflation, which erodes the value of fixed-income securities. Stock investors, meanwhile, like to see rates fall, because that makes shares more attractive and cuts the cost of borrowing. Still, concern over a strong economy has overshadowed recent good inflation news. Investors Group Inv Stock Eq Plus Inv Select BOS NewDim InvMuti IDS Progr IDS Bond IDS TaxEx IDS HiYicId IDS Disc IDS Growth Fed Inc Ex Inc Man Ret Fund Prec Met Inti Fund Stall nc StralEqty SlratAggr Ins Tax Cash Mgmt Tax Free 17.06 9.92 8 47 1329 II 10 6.52 4.62 4.26 10.99 16.58 4.77 3.79 1023 7.30 922 17.96 10.44 8.91 13.99 11.68 6 87 4.87 3.84 4.87 11.57 17.43 5.02 3 99 10.77 7.68 9.71 5.62 8.70 13.91 5.45 5.37 2.81 5.18 $1.00 $1.00 Quotations from the NASD are representative interdeaJcr prices as of approximately 8:30 a.m. Interdealer markets change throughout the day.

Prices do not include retail markup, markdown or commission. Amer West Air 7 7s 8 Dillard's .26 7g 27 CNF 22 ls 22 14 Justin Ind 11 78 1218 MCI Com 18 34 19 NEBS 1814 18 34 Banc One 26 '4 26 38 Source Dept of Labor AP of Bcthesda, owns Flagstaffs Channel 13, which has been on the air for three years. The company joined with Warner Bros, in Oc-' tober, when the station was making some management changes. Among other things, the station' no longer has any news shows. Its daily fare is family-oriented.

The daily program schedule includes business, exercise, shopping and childrens shows, Makin said. Although Warner Bros. Network will initially broadcast on Wednesday nights only on Channel 13, by this time next year, Makin expects it to be running two nights of prime time television per week. ing 47 cities concentrated in the Southwest. The layoffs will be spread across all operating areas but wont be across-the-board percentage reduc-, tions, said spokesman Michael Mitchell.

It is clear that the future security of America West and its employees lies in fewer people working smarter and earning more money, W.A. Franke, chairman and chief executive, said in a news release. The bulk of America Wests work force, 7,500 employees, is here, and there are smaller hubs in Las Vegas and Columbus, Ohio. 1 150 San Francisco Street Nursing assistant 11 WEEKS DIPLOMA -LEUMNG TO STATE CERTIFICATION Phlebotomy Course 5 F.F.KS CERTIFICATION OF COMPLETION of the fastest growing occupations between 1993 and the year 2005 will be health related 2575 I- 7li Ave Flagstaff, Az 86001 PHYSICAL MEDICINE JOHN LEDINGTON MD American Board of Physical Medicine Rehabilitation PHOENIX (AP) America West Airlines Inc. is clear of bankruptcy court and has seven profitable quarters behind it but says it still must lay off 10 percent of its workforce to stay competitive.

In announcing plans Monday to cut 1,100 of its 11,500 jobs, the regional carrier said most of the employees who remain would get raises and productivity bonuses of up to 25 percent of their base pay. Its the sort of medicine you take in order to stay alive, said Mike Martin, chairman of the Air Line Pilots Association local that represents America West. Most employees have been expecting some job cuts because America West has more workers compared with the number of planes it flics than its competitors have, said Martin, whose union doesnt expect cuts. The layoffs are part of a streamlining program to reduce America Wests annual operating expenses of $1.3 billion by $31 million this year, iUimUtUittfit ASi1 1 1 A 779-2741 Dr Ledington specializes in back and neck pain, musculoskeletal disorders, chronic pain and sports and industrial medicine The Gift Shop LITTLE AMERICA A i' I 779-7885 or 800-829-8985 invites you to "Sample Saturday 5at. January 14th 10 a.m.

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