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what's news
BUSH SIGNED a far-reaching corporate-reform bill into law, vowing that executives who commit business fraud will be "exposed and punished" with jail time. (Complete coverage)

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Merrill Lynch defended its dealings with Enron, telling congressional investigators they were "appropriate and proper" based on what the company knew at the time.

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Consumer confidence tumbled in July, hurt by volatility in the stock market and continuing concerns over jobs and the economy. The Conference Board's index dropped to 97.1 from 106.3 the previous month.

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FCC Chairman Michael Powell told a Senate committee that U.S. phone service won't be disrupted by the financial woes of WorldCom and other telecommunications companies. Industry executives made similar assurances. (Bios and excerpts)

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U.S. stocks slipped Tuesday as the four-day buying binge cooled; however, losses were contained considering investors were grappling with new, disappointing economic data.

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ChevronTexaco posted a sharply lower profit for the second quarter, hurt by weaker refining margins and a $531 million write-down of its investment in Dynegy.

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Vanguard Airlines suspended operations, saying it would lay off nearly all its employees and file for bankruptcy protection after the U.S. government rejected the carrier's request for a loan guarantee.

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Guidant agreed to acquire Cook Group, a private medical-device company, for up to $3 billion in stock.

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Dynegy reported a $328 million second-quarter loss and slashed its 2002 earnings forecast. Rival energy trader Mirant also posted a loss and said it overstated its assets and liabilities last year.

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A suicide bomber killed himself and injured seven others at a Jerusalem fast-food stand. The first suicide bombing in a month came as West Bank gunmen killed two Israeli settlers who had entered a Palestinian village. (More world news)

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 Motorola's Galvin Defends Stock Sale
 Brazilian Shares, Currency Weaken
 BP Posts 44% Profit Drop
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MORE ON U.S. BUSINESS PAGE
 
Page One
The Battle for Bertelsmann's Soul
Bertelsmann has been driven for nearly 170 years by the desire to meld business savvy with Christian piety. Former CEO Thomas Middelhoff learned how hard it is to reconcile those conflicting goals.
GM, Green Group Are at Odds Again
The unlikely relationship between General Motors and the Coalition for Environmentally Responsible Economies resulted in GM decreasing pollution at some of its factories. But now the environmental group is threatening to end its detente with the auto maker.
This Man Wins Cars Hands Down
Brian Root of Perrysburg is a professional hand-a-thoner. He travels around the country entering competitions in which contestants must keep their hands planted on automobiles. Whoever lasts the longest wins.

 
Special Reports
 
 European Mutual Funds Quarterly Review
 
 Health Industry Edition
 
 WorldCom's Fall
 
 Called to Account: Enron & Beyond
 
 Analyzing the Analysts
 
 Aftermath of Terror
 
 E-Commerce: Clicks in Bricks
 
 The Harris Poll: Fighting Corporate Crime
 
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Additional information on stories published in the print edition of The Wall Street Journal:
Journal Flashback: Four years ago when she was profiled on Page One, Jennifer Schulte was trying to balance college life and a full-time job at a Sears store, with an eye toward moving through the retailer's management ranks. Now 22, her priorities have changed, and she's leading a more traditional college life.

Setting Standards: Two "rich-media" firms floated new online-advertising guidelines, hoping to make it easier to run elaborate campaigns on multiple Web sites.

Clear the Air: Some travelers who plan to fly on Sept. 11 are defiantly patriotic about their decision. But Jane Costello found others who intend to stay home, wary of media hype and tight security.

Waldholz on Health: Budget shortfalls have created a crisis in providing AIDS treatment to the uninsured.

Editors' Picks: A selection of articles chosen by the Online Journal as some of the best reads of the day. Today read how Chicago schools are baiting student teachers with summer entertainment, and about companies that are using customer-service operators to make sales pitches.
* * *
Discussions: Join the debate on discussion boards and vote in Question of the Day, available free. Here's what's new and notable.
 Which of the six proposals to rebuild Ground Zero do you like best?
 
 Are you happy with your cellphone service? Would you ever drop your traditional phone line and go wireless?
 
 What will changes in AOL Time Warner's executive ranks mean for the company?
 
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Inside Today
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See profiles and key testimony from officials appearing before a Senate panel.
Question of the Day:
Should commemorative TV programs on Sept. 11, 2002 be commercial-free?
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*at close 4:11 pm EDT
DJIA * 8680.03 -31.85
NASDAQ * 1344.18 8.93
S&P 500 * 902.78 3.82
Japan * 10003.72 337.05
Stoxx 50 * 2720.82 -27.41
Source: Dow Jones, Reuters
Honda Powers Up
Does the new Accord add punch at the expense of its family appeal?
The Cranky Consumer
Want to learn Italian in just minutes a day? Good luck.
 
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