WaMu's shares decline on mortgage woes

Washington Mutual was among a group of U.S. mortgage companies whose stock fell Friday as demand for loans and sources of new money dried up.

The shares of Seattle-based Washington Mutual, the largest U.S. savings and loan, lost 81 cents, or 2.2 percent, to $35.95.

Shares of Countrywide Financial, the biggest U.S. mortgage lender, fell 2.8 percent, while MGIC, the No. 1 mortgage insurer, fell 13 percent.

Washington Mutual said in a regulatory filing Thursday that liquidity had "diminished significantly" in the market for home loans made to borrowers who don't meet the top credit standards. Countrywide said in its own filing Thursday that "unprecedented disruptions" in the mortgage market may reduce profit.

"Any company that has products related to home sales is in trouble," said James Stratton, chief executive officer of investment firm Stratton Management in Pennsylvania. "Instead of a soft landing, it's a hard landing," Stratton said.

Boeing

First 787 flight could be delayed

Boeing is still targeting the end of next month for the first flight of its new 787 Dreamliner, but the aircraft maker said Friday it could delay the flight due to several complex steps that remain in the passenger jet's final assembly.

"That date could move into fall as we proceed to do all the work in front of us," Boeing spokeswoman Yvonne Leach said.

Leach said the final assembly of the midsize jet, the integration of its aviation, hydraulic, electronic and other systems and software, plus several rounds of structural testing could all influence the timing of the first flight.

Even if the first flight were delayed, Leach said Boeing has plans in place to ensure the first delivery of the long-haul Dreamliner, to Japan's All Nippon Airways, will be as scheduled in May 2008.

Sound Publishing

Weeklies, shopper among latest deals

Sound Publishing said Friday that it acquired two community weeklies, a regional shopper and two monthly business publications from Sun News. Sound Publishing's president said there were no major changes planned for the Marysville Globe, Arlington Times, the regional Express Shopper, Wenatchee Business Journal and Bellingham Business Journal.

Kris Passey, one of the four owners of Sun News, will continue as publisher of the community newspapers and supervisor of the business publications. Sun News purchased the Globe and Times in 1997 and both business monthlies in 2001.

Sound Publishing, a subsidiary of Black Press of Victoria, B.C., owns more than 50 Western Washington publications, with a total weekly circulation of 850,000.

Compiled from Bloomberg News, The Associated Press and Seattle Times business staff