IN BRIEF

Holiday sales may punish retailers’ stocks

The slowest holiday shopping season in five years may signal disappointing earnings well into next year for U.S. retailers including Target Corp., J.C. Penney Co. Inc. and Dillard’s.

Goldman Sachs Group analysts lowered earnings projections for the year ending in early 2009 at 12 retailers last week. The average estimates for the five biggest U.S. department stores, led by Sears Holdings Corp., have declined the past four weeks, data compiled by Bloomberg show.

The dimming prospects have weighed on retailers’ stock prices. The 30-member Standard & Poor’s 500 Retailing Index fell 0.3 percent to 432.19. It has dropped 6.2 percent from Nov. 1, when the industry’s holiday season began. The S&P 500 index declined 5 percent during that time.

The National Retail Federation, based in Washington, projected a 4 percent increase in U.S. sales during November and December, the smallest gain in five years. The two months account for about 20 percent of retailers’ annual sales.

United mechanics may vote to change unions

United Airlines mechanics may vote on whether to switch to representation by the Teamsters, in a move the union said could thwart a plan by the carrier’s parent to sell its maintenance unit.

The International Brotherhood of Teamsters expects a vote in the next six weeks after asking the National Mediation Board on Monday for an election by mechanics at Chicago-based United, Clacy Griswold, the union’s airline-division representative, said on a conference call. The Aircraft Mechanics Fraternal Association represented 5,524 workers at UAL Corp.’s United as of Dec. 31.

The Teamsters union opposes UAL’s plan to sell all or parts of some units such as its maintenance operations and frequent-flier program. UAL has said it would choose a buyer for the maintenance unit by year’s end and then take a proposal to union leaders.

A sale of the maintenance unit would violate terms of the mechanics’ labor contract with UAL, Griswold told reporters on the call.

Mutual fund investors turn away from stocks

Mutual-fund investors fled every category of equity funds in November for the first time in 18 months and poured cash into money-market accounts as stock prices declined globally.

Stock funds shed $28.4 billion, led by $9.3 billion in net withdrawals from U.S.-dedicated funds, according to data compiled by Cambridge, Mass.-based Emerging Portfolio Fund Research. Money funds had $45 billion in net deposits as customers overcame worries about investments in mortgage-backed securities disclosed by managers such as Legg Mason. Bond funds dropped $2 billion.

WASHINGTON

Interest rates decline in Treasury auction

Interest rates on short-term Treasury bills fell in Monday’s auction, with rates on six-month bills falling to the lowest level in 21/2 years.

The Treasury Department auctioned $21 billion in three-month bills at a discount rate of 3.03 percent, down from 3.175 percent last week; and $20 billion in six-month bills at a discount rate of 3.19 percent, down from 3.34 percent last week.

NEW YORK

Treasury prices rally amid credit worries

Treasury prices rallied Monday as worries about riskier parts of the credit markets were intensified by news that Moody’s Investors Service could cut ratings on $105 billion in debt in structured investment vehicles.

The benchmark 10-year Treasury note rose 0.53 points to 102.93 with a yield of 3.89 percent, down from 3.97 percent late Friday. Prices and yields move in opposite directions.