Corporations in the tech industry like Apple (AAPL) and Netflix (NFLX) dragged down US stocks on Wednesday. Both Ford Motor Co. (F) and Radioshack (RSH) noted large losses for the second quarter as well. The S&P 500 and Nasdaq saw declines while the Dow was finally lifted. Positive earnings came from Boeing (BA) and Caterpillar (CAT), who saw increases in their second-quarter revenues.
Economic outlook continues to darken as the German construction sector declined and Italian and Spanish bond yields surged. US home sales were reported to have a large drop in June. The euro rose against the dollar for the first time in 6 days but the outcome remains weak after hitting a two-year low on Tuesday.
Word on the Street
- Euro jumps higher after comments from European Central Bank member about a eurozone bailout fund banking license.
- US Department of Agriculture says the record drought the US is currently facing will drive up food prices 3-4%.
- June sees biggest home sales fall 8.4%, the largest fall in over a year.
- Radioshack (RSH) sinks to an all time low and suspends dividend in order to make better use of excess cash.
- Ford Motor Company (F) reports second-quarter profit drop of 57% due to European troubles.
- Former Citigroup (C) CEO calls for the separation of commercial banking and investment banking.
- Big Internet companies to start a new trade association for dealing with political and regulatory issues.
- As demand for construction and mining equipment grows, Caterpillar (CAT) sees soaring profits.
- VMware (VMW) Annouces Nicira Acquisition, Earnings.
- To be like Jobs or not to be like Jobs, that is the question.
- As Twitter evolves, many wonder - is it in the advertising or technology industry?