Dow Jones Average Falls Dramatically, Again
NEW YORK (AP) — There was no let-up in the flight from stocks and bonds Thursday, and the Dow Jones industrial average fell more than 300 points. The Dow was down 338 points, or 1.9 percent, to 14,875. The Nasdaq composite fell 72 points, or 2.1 percent, to 3,369.
A day after the Federal Reserve roiled U.S financial markets when it said it could step back from its aggressive economic stimulus program later this year, financial markets continued to slide. A slowdown in Chinese manufacturing added to Wall Street's worries.
A Fed policy statement and comments from Chairman Ben Bernanke started the selling in stocks and bonds Wednesday.
Bernanke said the Fed expects to scale back its massive bond-buying program later this year and end it entirely by mid-2014 if the economy continues to improve.
The bank has been buying $85 billion a month in Treasury and mortgage bonds, a program that has kept borrowing costs near historic lows for consumers and business. It has also helped boost the stock market.
Photo: Specialist John O'Hara works at his post on the floor of the New York Stock Exchange, Thursday, June 20, 2013. Financial markets are sliding after the Federal Reserve said it could end its huge bond-buying program by the middle of next year. Photo by Richard Drew/AP Photo
More Business News
Last Update on August 20, 2014 17:13 GMT
SAN FRANCISCO (AP) -- Apple's stock touched a new high Wednesday, reflecting investors' renewed faith in CEO Tim Cook's ability to outwit the competition and expand the technological hit factory built by the late Steve Jobs.
The milestone represents a dramatic turnaround in sentiment since Apple's shares reached its previous split-adjusted peak of $100.72 in September 2012. The shares peaked at $100.77 Wednesday morning, giving it a market value of roughly $600 billion -- more than any other publicly held company.
Apple's stock fell to a split-adjusted $55.01 in April 2013 to wipe out about $300 billion in shareholder wealth amid worries that the Cupertino, California, company had run out of ideas without Jobs as its mastermind.
Those concerns have faded amid high hopes for an iPhone with a bigger screen.
NEW YORK (AP) -- Target has slashed its annual profit outlook as the retailer continues to reel from a massive data breach, a disappointing expansion in Canada and sluggish sales in the U.S.
The nation's third-largest retailer also said Wednesday that its second-quarter earnings dropped 61.7 percent.
The Minneapolis-based company says it earned $234 million, or 37 cents per share, in the quarter that ended Aug. 2, compared with earnings of $611 million, or 95 cents per share, a year earlier.
Revenue rose 1.7 percent to $17.4 billion, slightly above the $17.38 billion estimate from FactSet.
Excluding expenses related to the breach, the company earned 78 cents per share, which was in line with Target's reduced estimate issued earlier in the month.
Analysts had expected 79 cents per share, according to FactSet.
MOORESVILLE, N.C. (AP) -- Lowe's second-quarter net income increased 10 percent, bolstered by improving weather.
The home improvement company's performance beat analysts' expectations, but the Mooresville, North Carolina, company lowered its full-year revenue outlook slightly, citing its year-to-date sales and prior assumptions for the second half.
Lowe's Cos. earned $1.04 billion, or $1.04 per share, for the three months ended Aug. 1. A year earlier it earned $941 million, or 88 cents per share.
Analysts expected $1.02 per share.
Revenue rose 6 percent to $16.6 billion from $15.71 billion, topping Wall Street's $16.57 billion forecast.
Sales at stores open at least a year, a key indicator of a retailer's health, climbed 4.4 percent.
Lowe's now anticipates full-year revenue rising about 4.5 percent. Its prior outlook was for an approximately 5 percent increase.
BARNES & NOBLE-SAMSUNG
B&N and Samsung introduce co-branded tablet
NEW YORK (AP) -- Barnes & Noble and Samsung on Wednesday unveiled a new co-branded tablet called the Samsung Galaxy Tab 4 Nook that will replace B&N's own Nook tablets.
The 7-inch tablet will sell for $179 after a $20 instant rebate, the same entry price of the non-branded Samsung Galaxy Tab 4.
The move had been expected, since Barnes & Noble said in June it would team up with Samsung to develop Nook tablets that would be available in August.
For the first time, the Nook will have a front- and rear-facing camera. It comes with more than $200 in content from the Nook Store, including books, TV shows and magazines. However, apps are limited to Nook apps rather than the full suite of Android apps available on Google Play.
OMAHA, Neb. (AP) -- Warren Buffett's company has agreed to an $896,000 penalty for failing to tell regulators about a December 2013 investment in wallboard maker USG Corp.
The Federal Trade Commission said Wednesday that Berkshire Hathaway Inc. should have notified the Justice Department before it converted $325 million of senior USG notes it held into 21.4 million shares of the company.
Because Berkshire was already a significant USG shareholder, antitrust laws required it to notify regulators because of the size of the deal.
Regulators say Berkshire made a similar mistake six months earlier when it acquired securities in Symetra Financial Corp.
Berkshire officials did not immediately respond to questions about the settlement Wednesday.
Besides investments, Berkshire owns more than 80 subsidiaries in a variety of industries, including insurance, utilities, railroads, retail and manufacturing.
BUCKLAND, Mass. (AP) -- The nation's oldest cutlery manufacturer has filed for bankruptcy after 177 years of making knives and other kitchen tools.
The Recorder of Greenfield reports that Lamson & Goodnow Manufacturing Co. of Shelburne Falls, Massachusetts, filed for Chapter 11 bankruptcy earlier this month, which protects the company from creditors as it reorganizes.
The business has also put its 18-acre factory complex up for sale.
According to federal bankruptcy court in Springfield, the company filed for bankruptcy protection as a result of two multimillion dollar loans it could not repay. The company owes $1 million on a U.S. Small Business Administration loan and more than $2 million to the small business corporation in New York.
Founded in 1837, the company has been owned by James Ross Anderson since 1998.
HOUSE GOP-BUSINESS GROUP
WASHINGTON (AP) -- The U.S. Chamber of Commerce is stepping in to help an establishment-preferred Republican in a bruising three-way Arizona primary in one of the most competitive House districts in the country.
The powerful business group is putting hundreds of thousands of dollars behind a television ad for state House Speaker Andy Tobin, who has struggled to raise money. His two rivals -- businessman and rancher Gary Kiehne and state lawmaker Adam Kwasman -- are already on the air with TV ads.
The primary is Tuesday but early voting began July 31.
The Chamber ad, which begins airing on Thursday, focuses on Tobin, calling him a "rock solid conservative," and the Democratic incumbent, Rep. Ann Kirkpatrick.
The commercial makes no mention of the two other Republican candidates.
The Good LifeCelebrating the events, adventures and activities that represent "The Good Life" in the NewsChannel 9 viewing area.
SideroadsTake a ride with Brian Smith to explore the unique people and places to be found along the Sideroads of the NewsChannel 9 viewing area.
Road TrippinCome Road Trippin' with us and see all the great sites in your area!
Closings and DelaysThese are the latest School and Business Closings reported to NewsChannel 9. If you see errors or need to add a school or business, call 423-757-7320.
This N ThatLearn about the latest in community affairs and great events with Brian Smith on This 'N That.
Educator of the WeekNominate now for Educator Of The Week!
Deaf & Hard of HearingInformation provided to NewsChannel 9 by members of the Deaf and Hard of Hearing Community.
Sponsored EventsCheck Back Often for NewsChannel9 Sponsored Events!