Consumers aid economy

        Consumers — the economy's lifeblood — are keeping the recovery on track. They shopped with more gusto in April, pushing retail sales up by 1.2 percent, the best performance in six months.

        The latest sales snapshot released by the Commerce Department Tuesday raised hopes among economists that shoppers will continue to keep their pocketbooks and wallets open to support the fledgling recovery in the months ahead.
       

Penney earnings soar

        J.C. Penney Co. Inc.'s earnings more than doubled in the first quarter, helped by solid sales increases at Eckerd drugstores and an improved merchandising strategy in its department stores.

        The results beat Wall Street estimates. The company also raised full-year earnings estimates and its shares were up 5 percent on midday trading. The stock closed at $24.89, up $1.69 in New York Stock Exchange trading.

        Penney earned $86 million, or 29 cents per share, in the February-April period compared to $41 million, or 13 cents per share, a year ago.
       

Columbia House bought

        Blackstone Group, a privately held investment group, is buying a majority stake in Columbia House, the direct marketer of music and movies that is jointly owned by the music divisions of AOL Time Warner Inc. and Sony Corp.

        No price or other financial details were disclosed in the announcement Tuesday. Previous reports put the value of the deal around $450 million, but a source familiar with the matter said the price was closer to $400 million.
       

UPS workers to vote

        United Parcel Service Inc. workers represented by the Teamsters will vote this weekend on giving their leaders authority to call a strike if necessary, as the union tries to speed up contract talks.

        Results of the vote at the largest employer of Teamsters will be announced next week, the union said in a message to its members.

        United Parcel wants to avoid a repeat of a 15-day strike in August 1997 that cost the company $750 million in lost revenue and interrupted shipments to thousands of U.S. businesses.
       

PlayStation 2 $100 cheaper

        Underlining its faith in the video-game business as an engine for growth, Sony Corp. slashed the price of the PlayStation 2 console in the United States Tuesday to $199, underpricing its biggest rival, Microsoft Corp.'s Xbox, by $100.

        The price cut was part of a business plan outlined Tuesday by the Tokyo electronics and entertainment giant. Sony's PlayStation 2, which has now sold more than 30 million worldwide, had been selling in the United States for $299, the same as the Xbox.

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