IN BRIEF
Gambling companies jockey for Boston slot
Las Vegas-based gaming giants Harrah’s Entertainment and the Las Vegas Sands Corp. seem to be positioning themselves to go head-to-head for a single casino concession in the Boston region.
The moves come as Massachusetts Gov. Deval Patrick filed plans Thursday with the state Legislature to legalize a gaming resort in separate three regions across the state.
Harrah’s Entertainment would like to build a $1 billion Caesars resort at Suffolk Downs racetrack in Boston, the gaming company’s Chairman and Chief Executive Officer Gary Loveman told the Boston Herald on Wednesday.
Las Vegas Sands is eyeing a site 36 miles west of Boston, according to The Associated Press.
Both sites fall in the same region under the governor’s proposal.
Deval’s proposal would give preference to bidders who partner with an American Indian tribe. The bill also requires bidders to own the land and guarantee a minimum investment of $1 billion for a resort-style casino.
Final expansion phase of casino unveiled
Station Casinos unveiled the final phase of its two-year, $75 million expansion of Fiesta Henderson on Thursday.
The latest phase is anchored by a 12-screen, all-digital movie theater operated by Regal Entertainment Group.
An expanded casino floor, new race and sports book and 1,500 space parking garage came on line August 2006.
Station Casinos agreed to purchase the 227-hotel room property, then called The Reserve, for $70 million in October 2000 from Ameristar Casinos.
ATLANTIC CITY
Atlantic City casinos continue down spiral
Atlantic City casinos continued on a downward track in September, taking in 10.6 percent less from gamblers than they did last September, the state Casino Control Commission reported.
Industry experts blame the revenue slide on slot parlors that recently opened in Pennsylvania and Delaware, and a partial smoking ban in the 11 Atlantic City casinos.
The casinos won $419.3 million in September, compared to $468.8 million in September 2006. They took in $300.7 million from slot machines, a 12.6 percent decline, and $118.6 million at table games, a decrease of 5 percent.
Only two of the 11 casinos did better this September than a year ago: revenues rose 1.2 percent at Showboat Casino-Hotel and 0.3 percent at Caesars Atlantic City.
BENTONVILLE, Ark.
Wal-Mart Stores raises earnings outlook
Wal-Mart Stores, the world’s largest retailer, raised it earnings outlook for the third quarter on Thursday, citing better cost controls at the division that runs its namesake U.S. stores.
Chief Executive Lee Scott said the quarter was seeing an improvment from what he called a “very poor performance” in the second quarter. Wal-Mart cut its profit outlook for the year when it reported second quarter earnings in August, saying that consumer spending has slowed in the U.S. and abroad.
Wal-Mart boosted its forecast for earnings from continuing operations in the third quarter to a range of 66 cents to 69 cents per share, up from an earlier outlook for of 62 cents to 65 cents per share.
WASHINGTON
Mortgage rates rise slightly during week
Rates on 30-year mortgages edged up slightly this week following a better-than-expected report on job growth.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.40 percent this week, up from 6.37 percent last week.
In mid-September, the nationwide average for 30-year mortgages had dipped to 6.31 percent, the lowest level since May 17.
Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, averaged 6.06 percent this week, up from 6.03 percent last week.
Rates on five-year adjustable rate mortgages averaged 6.12 percent, up from 6.11 percent last week. One-year adjustable-rate mortgages averaged 5.73 percent, up from 5.58 percent.
The mortgage rates do not include add-on fees known as points. Thirty-year mortgages carried a nationwide average fee of 0.4 point while 15-year and five-year mortgages both carried an average fee of 0.5 point. One-year adjustable-rate mortgages had an average fee of 0.6 points.
A year ago, 30-year mortgages stood at 6.37 percent, 15-year mortgages were at 6.06 percent.
NEW YORK
Inventory news sends oil prices past $83
Petroleum futures rose sharply Thursday and oil prices passed $83 a barrel after the government reported an unexpected decline in crude oil inventories.
Prices also were supported by an International Energy Agency report that concluded oil inventories held by the world’s largest industrialized countries have fallen below a five-year average, and by concerns that clashes between Turkish forces and Kurdish rebels could affect Iraqi oil supplies.
Light, sweet crude for November delivery rose $1.78 to settle at $83.08 a barrel on the New York Mercantile Exchange, the second highest settlement price on record for a front-month contract. Crude futures settled at $83.32 on Sept. 20 after rising to a trading record of $83.90.
SAN JOSE, Calif.
Electronic Arts to buy two software studios
Seeking to fill gaps in its product lineup, video game publisher Electronic Arts said Thursday it will acquire two software studios from Elevation Partners in a deal worth $860 million, the largest in its history.
The studios, BioWare Corp. and Pandemic Studios, are known for their action, adventure and role-playing games. Elevation owns their parent, VG Holding Corp.
Under the the deal, EA will pay VG stockholders up to $620 million in cash and issue as much as $155 million in equity to some of the company’s employees.
NEW YORK
Treasury prices slide on labor market data
Treasury prices ended lower Thursday after new data pointed to a resilient labor market and rising import prices.
The benchmark 10-year Treasury note fell 0.31 points to 100.47 with a yield of 4.69 percent, up from 4.65 percent at Wednesday’s close.
The 30-year long bond lost 0.66 to 101.5 with a yield of 4.89 percent, up from 4.86 percent late Wednesday.
