BIZ BITS

Google offers peek at operating system

Google Inc.'s new operating system, which is designed to bypass computer hard drives and work totally through the Internet, got its first public exposure Thursday.

Chrome OS, due out about a year from now, eventually could pose the first real competition for Microsoft Corp. and Apple Inc.'s consumer operating systems. Chrome's main difference is that applications and other materials that now exist on a hard drive will live online.

Economic recovery indicators weak

On Thursday, a gauge of future economic activity and a report on unemployment benefits indicated the recovery likely will remain weak in the coming months.

The Conference Board's index of leading economic indicators rose less in October than analysts had expected. The index forecasts activity by measuring consumer expectations, building permits and other data.

The number of newly laid-off workers seeking unemployment benefits, unchanged last week, also remains above the level that would indicate the economy is adding jobs.

Shareholders OK DirectTV spinoff

Shareholders approved the formation of a new company out of DirecTV Group Inc. and some of Liberty Media Corp.'s entertainment businesses, and the chairman of both companies dampened speculation about a sale to a big phone company.

Media mogul John Malone told The Associated Press he could see the new DirecTV, the nation's largest satellite TV provider, collaborating more closely with phone companies to offer Internet and phone services that compete with cable TV operators. He was vague on whether he would seek a sale.

Kmart reports increased sales

Shoppers increased their spending at Kmart stores for the first time in at least seven years this fall, picking up cheap toys, shoes and items for the home. The boost in sales at Kmart stores open at least a year was tiny, less than 1 percent, but it helped its parent company, Sears Holdings Inc., post a smaller quarterly loss.

Still, experts say the boost almost certainly will be fleeting as the economy recovers and the discount chain continues to fall victim to larger rivals that offer more products at better prices and in spiffier locations.

A wire report