US stocks turn lower as Egypt turmoil worsens
NEW YORK — The stock market ended slightly lower Tuesday after reports of intensifying political turmoil in Egypt offset good news about the U.S. economy.
Stocks rose most of the day on positive news about car sales, home prices and manufacturing. But major indexes turned lower after 1:40 p.m. after news emerged that Egypt’s military had drawn up plans to suspend the country’s constitution, dissolve its legislature and set up an interim government. Millions of protesters are demanding the ouster of President Mohammed Morsi.
The price of oil climbed close to $100 a barrel on concern that the crisis could disrupt the flow of crude from the region.
The Dow Jones industrial average fell 42.55 to close at 14,932.41 The S&P 500 closed down 0.88 to 1,614.08 The Nasdaq slipped 1.09 to 3,433.40
Fed approves higher bank capital standards
WASHINGTON — The Federal Reserve approved higher requirements for the amount of capital reserves banks must hold to cushion against unexpected losses. The change is aimed at preventing a repeat of the 2008 financial crisis.
The nation’s 19 largest banks with assets of $250 billion or more will have to start meeting the requirements by Jan. 1. All other banks will have to begin meeting the requirements a year later. The rules will be fully phased in by the end of 2018.
Banks had lobbied to modify the requirements, saying they could hamper their ability to lend. But experts said most big banks have already increased their reserves.
Under the rule, all banks will need to maintain a level of high-quality capital equal to 4.5 percent of their loans and other assets, weighted by how risky those assets are.
States join US antitrust review of airline deal
DALLAS — The Texas attorney general and counterparts in 18 other states joined a Justice Department review of the proposed merger between American Airlines and US Airways.
A spokesman for Texas AG Greg Abbott said Monday that Texas is leading a group of 19. It’s not unusual for states to join a federal review. By doing so, they can look out for their interests and take part in meetings and depositions.
S.C. Attorney General Alan Wilson is among the 19, but his office’s involvement is limited to routine monitoring, said spokesman Mark Powell.
“We’re monitoring to see if there’s any potential relevance to South Carolina and any conflicts of interest,” Powell said.
American Airlines and US Airways declined to comment. Both serve Charleston International Airport.
Bankrupt AMF finishes merger with Bowlmor
RICHMOND, Va. — AMF Bowling Worldwide, Inc. and bowling center operator Bowlmor have completed their merger. Virginia-based AMF proposed the merger in its plan to emerge from bankruptcy protection.
AMF and Bowlmor said the combined company will be called Bowlmor AMF. New York-based Bowlmor and several of AMF’s lenders will jointly own the combined company.
Bowlmor AMF will own 50 percent of Qubica AMF. Qubica makes bowling equipment such as pinsetters and ball returns.
The companies say Bowlmor AMF will be the largest bowling center operator in the world, with 272 centers and 7,500 employees. Bowlmor CEO Tom Shannon will lead the combined company.
AMF’s bowling centers include AMF Triangle Lanes at 1963 Savannah Highway in West Ashley. It also has operations in Cayce, Columbia, Greenville and Hilton Head.
Staff and wire reports