IN BRIEF

WASHINGTON

In January, businesses reduce their wholesale inventories

Businesses trimmed inventories at the wholesale level again in January even though sales rose for a 10th consecutive month. The dip in inventories underscored that businesses remain cautious about restocking their depleted shelves.

The Commerce Department said Wednesday that inventories at the wholesale level were reduced 0.2 percent in January following a 1 percent drop in December. Sales were up 1.3 percent, the best showing since a 3.6 percent rise in November.

Economists are hoping that the steady gains in sales will soon prompt a sustained rebound in inventory restocking. That would trigger increased factory production and provide support for the fledgling recovery.

Analysts believe the stage has been set for such a rebound given how lean inventories are at present following a massive inventory liquidation that occurred during the recession. Inventories at the wholesale level had fallen for 13 straight months and have been down 15 of the past 17 months. The only gains in wholesale inventories occurred in October and November.

With the January drop in inventories, the ratio of inventories to sales dipped to a record low of 1.10, meaning it would take 1.10 months to deplete inventories at the wholesale level given the January sales pace. That was the lowest point since the data series began in 1992.

Pinnacle Entertainment will
cede President Casino license

Las Vegas-based Pinnacle Entertainment said Wednesday it will surrender its gaming license for The President Casino in downtown St. Louis to Missouri gaming regulators.

The regional casino operator will close the casino no later than July 1. Pinnacle still operates Lumiere Place in downtown St. Louis and the recently opened River City Casino in suburban St. Louis.

"We have determined that it is in the best interests of our shareholders and our company to settle this issue," Pinnacle Interim Chief Executive Officer John Giovenco said.

Pinnacle Entertainment shares rose 32 cents, or 3.74 percent, Wednesday to close at $8.87 on the New York Stock Exchange.

NEW YORK

Tropicana orange juice cartons to shrink following deep freeze

Pepsico Inc. is raising prices on its popular Tropicana orange juice because of the deep freeze that hurt much of Florida's citrus crop.

The company said Wednesday it is shrinking its most popular size by about 8 percent -- while maintaining its price -- and raising the price on another size starting in May.

The 64-ounce container of orange juice will drop to 59 ounces. The suggested retail price remains at $3.59.

The price of Tropicana's gallon container of pure premium orange juice will rise between 5 percent and 8 percent. It costs $6.49.

Citrus growers in Florida -- the nation's top orange producer -- are hurting because of deep freezes this winter.

This year's orange crop is expected to be 19 percent smaller than last year's, according to a release from the U.S. Department of Agriculture on Wednesday.