Energy Sector Leads Stocks Lower

Word on the Street

• A New Orleans federal judge lifted the six-month temporary ban on deepwater drilling imposed by President Barack Obama following the massive oil spill in the Gulf of Mexico. U.S. District Judge Martin Feldman sided with the oil company, Hornbeck Offshore Services that brought the case against the government.
• Sales of US previously owned homes unexpectedly fell in May . Sales fell 2.2% to 5.66 million after a surge in sales in April, according to the National Association of Realtors. The number of previously owned homes on the market dropped 3.4 percent to 3.89 million.
• JPMorgan Chase (JPM) decided to shuffle around executives . The company named Heidi Miller to the new post of president of JPMorgan International. Doug Braunstein, head of investment banking for the Americas, was named CFO, replacing Michael Cavanagh, who will head the company’s treasury and securities services business.
• Southwest Airlines (LUV) is celebrating its 39th birthday with $39 fares to select cities across the country. With this special, the price you pay depends on how far you go. Fly up to 450 air miles for $39 one way, 451 to 1,000 air miles for $79 one way and more than 1,001 air miles for $119 one way.
• The biggest US drugstore chain, Walgreen Co (WAG), said its profit sank 11 percent in the third quarter because of higher costs related to the nation’s health care rules and its $623 million buyout of rival Duane Reade. Sales at stores open at least a year rose 0.7 percent overall.
• Chipmaking giant Intel Corp. (INTC) is in talks with the Federal Trade Commission to settle an antitrust case , alleging that the chipmaker had abused its market position and limited sales of competitive products.
• Carnival Corp.’s (CCL) fiscal second-quarter earnings fell 4.5%, hurt primarily by higher fuel costs. Carnival predicted third-quarter earnings between $1.43 and $1.47 per share. Shares of the world’s largest cruise operator fell as much as 4 percent on the New York Stock Exchange.

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