The nation's service sector contracted in January for the first time in almost five years, the Institute for Supply Management reported Tuesday. The trade group said its index of service-sector business activity, which includes banking, restaurants, and construction, declined to 44.6 in January from a revised reading of 54.4 in December. A reading below 50 indicates contraction.
A US district judge in Los Angeles ruled Monday that the Navy is not exempt from complying with both the National Environmental Policy Act and a court injunction that created a 12-nautical-mile, no-sonar zone off the coast of southern California. The decision was hailed by environmentalists as a legal victory to protect whales from potential harm from sonar tests during antisubmarine exercises.
New York Yankees pitcher Roger Clemens arrived Tuesday on Capitol Hill to give private, sworn testimony to congressional lawyers about whether he used performance-enhancing drugs. His appearance came one day after teammate and workout partner Andy Pettite (l. above) gave a deposition to committee staff. Both players' private interviews are in preparation for a Feb. 13 public session.
Testifying before the Senate Finance Committee Tuesday, Treasury Secretary Henry Paulson and David McCormick, the department's undersecretary for international affairs, said US and global financial markets are continuing to adjust to a period of prolonged turmoil and that the Bush administration is closely monitoring developments.
A dispute between Chrysler LLC and parts supplier Plastech Engineered Products Inc. forced Chrysler to shut down or cancel a shift at five factories Monday. Plastech supplies the automaker with about 500 plastic interior, exterior, and powertrain components. If the companies don't resolve their differences, Chrysler said, it could be forced to idle all 14 of its assembly plants.
Texas Tech basketball coach Bob Knight, who is known as much for his brilliance as his fiery temper, resigned Tuesday and handed over the team to his son Pat, a Red Raiders assistant who was appointed his father's successor in 2005. It was a stunning midseason move by the winningest men's coach in major college basketball, who was fired a decade ago by Indiana University, the school he led to three national titles.
Enhanced security technology is now in use at three airports, with Boston the latest to introduce equipment for digitally scanning each finger of foreign travelers, not just their index fingers, as has been done since 2004. More complete fingerprinting, previously introduced in Washington and Atlanta, is slated to be used at all the nation's international airports, seaports, and border crossings by the end of the year.