From wire reports

SEC proposes code for investment firms

WASHINGTON - Federal regulators responded to the mutual fund scandal with proposals Wednesday requiring ethics codes for investment firms that manage funds and bolstering the independence of fund board chairmen and directors.

At the same time, the Securities and Exchange Commission is widening its fund investigation by delving into several cases in which brokerage firms steered clients toward certain funds in exchange for payments - inadequately disclosed - from those fund companies.

As part of its package of reform proposals put out for public comment Wednesday, the agency would require that fund investors be given more information about such arrangements, even before they buy funds.

Some critics, however, said the practices should be banned rather than just disclosed because of their harm to ordinary investors.

NASD complains of firm's annuity switches

WASHINGTON - Brokerage firm Waddell & Reed Inc. allegedly switched 6,700 variable annuities - without determining whether the change was in the best interests of its customers - in order to generate fees, according to a complaint issued Wednesday by the National Association of Securities Dealers.

The switches occurred between January 2001 and August 2002 after Overland Park, Kan.-based Waddell & Reed failed to obtain an agreement to receive a share of fees collected by issuer United Investors Life Insurance Co., and began an "aggressive campaign" to switch its customers to another issuer, Nationwide Insurance Co., which had agreed to share the fees, according to the NASD.

Intel reports record fourth-quarter sales

SAN JOSE, Calif. - Intel Corp. posted better-than-expected profits and record revenue in the fourth quarter, a period marked by robust global demand for the company's computer chips in laptop, desktop and business machines.

The results offered strong vindication of Intel's decision to continue spending on research and equipment during the darkest months of the technology downturn.

For the three months ended Dec. 27, Intel earned $2.17 billion, or 33 cents a share, compared with $1.05 billion, or 16 cents a share, in the fourth quarter of 2002.

Sales totaled $8.74 billion, up 22 percent from $7.16 billion in the year-earlier period. The revenue total edged Intel's previous one-quarter record of $8.73 billion, posted in the third quarter of 2000.

Apple earnings rise on iPod and laptop sales

SAN JOSE, Calif. - Strong holiday sales of portable notebook computers and the iPod music player helped Apple Computer Inc.'s first-quarter results easily beat Wall Street expectations Wednesday.

For the three months ended Dec. 27, Cupertino, Calif.-based Apple said it earned $63 million, or 17 cents per share, compared with a net loss of $8 million, or 2 cents per share, in the same period last year.

Revenue for the quarter reached a four-year high of $2 billion, up 36 percent from the year-ago quarter.

Agreement reached for candy brands sale

CHICAGO - Archibald Candy Corp. said Wednesday it has signed a preliminary agreement to sell its Fannie May and Fanny Farmer brands to Alpine Confections Inc.

Financial terms were not disclosed.

The sale would not affect a plan announced this month to close all 228 Fannie May and Fanny Farmer retail stores by mid-February.

Under the terms of the agreement, however, Alpine might reopen some stores after an evaluation period.

Alpine produces Mrs. Fields, Harry London, Hallmark Chocolatier and Botticelli brands of candy.

Playboy can pursue suit against Netscape

Playboy Enterprises Inc. can pursue a trademark lawsuit against Time Warner Inc.'s Netscape Internet browser over use of the words "playmate" and "playboy" to trigger adult-oriented banner ads, a U.S. appeals court ruled.

Playboy sued Netscape Communications and the Excite Inc. search engine over their requirement that adult-oriented companies include the terms playboy and playmate in a list of keywords used to target advertising. Playboy claimed the use of its trademarks as keywords was improper, while the search engines said the words had more generic definitions.