Key averages coming off declines

NEW YORK (AP) -- Wall Street is coming off its first weekly decline, interrupting three weeks of gains. On Friday, the Dow fell nearly 121 points to finish at 12,745.

The Standard & Poor's 500 index fell 9.40 to 1,388.28, and the Nasdaq composite index fell 5.72 to 2,445.52.

For the week, the Dow fell nearly 2.4 percent, the S&P 500 declined 1.8 percent and the Nasdaq lost nearly 1.3 percent.

This week, a few corporate earnings reports are due, including readings from would-be merger partners XM Satellite Radio and Sirius Satellite Radio. Wal-Mart reports tomorrow and Hewlett-Packard releases its results on Thursday.

Oil prices retreat from last week's record close near US$126 a barrel

BANGKOK, Thailand (AP) -- Oil has retreated from last week's record close near $126 a barrel.

The final gain at the end of last week rounded out five days in which crude oil futures rose nearly $10 a barrel and hit a record in every session.

By midmorning Monday in Singapore, light, sweet crude for June delivery had dropped 50 cents to $125.46 a barrel in electronic trading on the New York Mercantile Exchange.

On Friday, the contract broke above $126 for the first time. That advance came after Colombia said it recovered documents from a slain guerrilla that indicate Venezuelan President Hugo Chavez has offered assistance to Colombian rebels.

Reports due this week on inflation, retail sales, among others

WASHINGTON (AP) -- There's no shortage of economic reports due this week. Later today, the government releases the Treasury budget statement.

Tomorrow, the government reports on April retail sales as well as business inventories. Wednesday, the Labor Department releases the Consumer Price Index for April. Industrial production comes on Thursday, with building permits and consumer sentiment due on Friday.

News Corp. withdraws bid to buy NY newspaper Newsday

NEW YORK (AP) -- A spokeswoman for Rupert Murdoch's News Corporation says the media conglomerate has withdrawn its bid to purchase Newsday.

The decision to revoke the offer Saturday comes just days after Murdoch confidently predicted he would clinch a deal to buy the Long Island newspaper within a week.

News Corp. had offered about 580 million dollars for the paper. The company already owns two other New York newspapers, the Wall Street Journal and the New York Post.

Cablevision and New York Daily News owner Mortimer Zuckerman were also reported to be in the running for Newsday, now owned by the Tribune Co.

Person close to talks: Cablevision close to getting Newsday

NEW YORK (AP) -- A person with knowledge of the situation says cable TV provider Cablevision is close to buying the Long Island newspaper Newsday from Tribune Company for 650 million dollars.

The news came a day after Rupert Murdoch's News Corporation withdrew its own 580 million dollar bid, despite assurances from Murdoch himself just days earlier that he would prevail.

The person with knowledge of the matter asked to remain anonymous since the talks are confidential. Spokesmen for Tribune and Cablevision declined comment.

Study: Retirement savers make costly 401 mistakes

NEW YORK (AP) -- Despite extensive efforts to educate workers about saving for retirement, many employees are not doing a good job of managing their company-sponsored 401 accounts.

A new study of nearly 1 million retirement portfolios indicates that 69 percent have inappropriate risk or diversification of holdings and 36 percent have worrisome concentrations of company stock. In addition, one-third of savers aren't putting enough aside to qualify for the full company matching contribution.

The problems are especially pronounced among young and low-paid workers, according to the study by Financial Engines, a California-based firm that provides investment advice and managed accounts for defined contribution plans like 401s.

Jeff Maggioncalda, Financial Engines' president and chief executive, says in an interview that some of the performance problems will dissipate as companies adopt automatic enrollment programs for workers, as authorized by the Pension Protection Act two years ago.

Still, he said, the data should help plan sponsors and other industry professionals "figure out who needs help and how to get it to them."

China launches homegrown jumbo jet manufacturing company

BEIJING (AP) -- China is launching a brand new company to build passenger jumbo jets -- a step forward in its quest to become less dependent on Boeing and Airbus.

The official news agency reports that the Commercial Aircraft Company is being established in Shanghai with about 2.7 billion dollars. The company will make planes with 150 seats or more.

China's central government and the Shanghai government are among the major shareholders, along with China's two main aircraft manufacturing and servicing companies.

Since China has limited experience making commercial airliners, manufacturing jumbo jets could mark a significant step. Its very first commercial jet -- an 85-seater -- was scheduled to make its maiden flight last month. That debut was postponed until later in the year because of delays in the delivery of key components.

Europe's Airbus has forecast that China's domestic aircraft market will increase fivefold by 2026. Airbus and Chicago-based rival Boeing have been dominating the market for commercial airplanes carrying 100 or more people.

CEO asks shareholders for patience

BERLIN (AP) -- Deutsche Telekom AG's chief executive is blaming the global credit crisis for his company's lackluster share price.

He's asking shareholders to be patient.

Rene Obermann took over as head of Europe's biggest telecom company in late 2006. Last week, the company reported a rise in first-quarter net profit but a decline in revenue.

He tells a German newspaper that Telekom shares performed strongly until January. Then the credit crisis hit "the whole industry."

Obermann brushed aside a question about whether Deutsche Telekom wants to buy U.S. mobile phone rival Sprint Nextel Corp. But he did note that his company's marketing of the Apple iPhone in Germany has been "attractive and profitable."

Telekom shares were worth nearly 13.50 euros when Obermann took over. They closed at 11.81 euros on Friday.

'Speed Racer' gets passed in its debut

LOS ANGELES (AP) -- "Iron Man" is lapping "Speed Racer."

The anime-inspired race-car movie debuted in second place at the box office this weekend. It earned more than 20 million dollars, but ticket sales for "Iron Man" were more than double that. The Marvel Studios comic-book hero film starring Robert Downey Junior brought in more than 50 million.

Executives at Warner Brothers say "Speed Racer" didn't meet the studio's expectations and would likely have difficulty recouping its 120 million dollar budget.

The comedy "What Happens in Vegas" starring Cameron Diaz and Ashton Kutcher debuted just behind "Speed Racer" in third place. It earned 20 million dollars, but only cost 35 million to make.

Two other comedies, "Made of Honor" and "Baby Mama," rounded out the top five.