Key indicator rises again

        A key gauge of U.S. economic activity rose strongly in December, and the third consecutive monthly gain signaled that the nation's recession might soon be over.

        The New York-based Conference Board said Tuesday that its Index of Leading Economic Indicators increased 1.2 percent in December following a revised rise of 0.8 percent in November and an increase of 0.1 percent in October. It was the largest monthly gain since February 1996.

        Analysts had been expecting a December increase of about 0.7 percent.
       

Amazon profits click

        Amazon.com, the pioneering Internet retailer that has come to symbolize both the potential and pitfalls of dot.com commerce, surprised Wall Street and the rest of the world Tuesday by recording its first quarterly profit.

        The world's largest Internet retailer said it earned $5 million, or 1 cent a share, for the quarter ending Dec. 31. That compared with a net loss of $545 million, or $1.53 per share, in the year-ago period.
       

Timber rivals merge

        After 14 months of stubborn negotiations, century-old timber rivals Weyerhaeuser Co. and Willamette Industries Inc. have agreed to a $6.1 billion merger.

        The deal, announced Monday, was resisted for years by the Willamette board of directors, led by chairman William Swindells Jr., grandson of a company co-founder.

        Weyerhaeuser will pay $55.50 per share in cash, 50 cents per share more than what Weyerhaeuser chairman Steven Rogel last month called his final offer.
       

AT&T pulls 900 plug

        AT&T is bailing out of a major part of the pay-for-service telephone business, dealing a serious blow to psychics, sex lines and other companies that use 900 numbers.

        AT&T stopped providing billing services for new 900 customers as of Jan. 1, and will discontinue billing for all such numbers on Dec. 31. The decision was primarily a financial one, said AT&T spokeswoman Jean Hurt.
       

T-bill rates increase

        Interest rates on the U.S. Treasury's three-month and six-month bills rose at the government's weekly sale of the securities.

        The Treasury sold $14 billion in three-month bills at a discount rate of 1.67 percent, up from the previous week's 1.53 percent and the highest since 1.71 percent Dec. 31. The Treasury sold $13 billion in six-month bills at a discount rate of 1.735 percent, up from the previous week's 1.58 percent and the highest since 1.75 percent Jan. 7.

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