Stocks edge up as Fed chief soothes investors
NEW YORK — Some calming words from Federal Reserve Chairman Ben Bernanke pushed the stock market to slim gains Wednesday. Higher earnings for several major companies also helped.
Bernanke said the Fed had no firm timetable for cutting back on its bond purchases. The Fed would consider reducing its stimulus program if the economy improves, but he emphasized in testimony to Congress that the reductions were “by no means on a preset course.”
Bank of America rose after it reported surging profits, helped by cost-cutting and investment banking gains. Bank of New York Mellon climbed after earnings beat expectations.
The Dow Jones industrial average rose 18.67 to 15,470.52. The S&P 500 climbed 4.65 to 1,680.91. The Nasdaq rose 11.50 to 3,610.
Intel cuts sales outlook as PC demand slumps
NEW YORK — Intel Corp., the largest maker of chips for PCs, put a brave face on the decline of the global PC sales earlier this year, saying it expected its own sales to grow. On Wednesday, it backtracked, saying sales will be flat.
Intel is hoping sales of processors for servers, tablets and smartphones will compensate for the drop-off in PC sales. The downward revision of the company’s outlook is an admission that Intel chips haven’t made it into many mobile devices.
Intel said revenue for the April to June period was $12.8 billion, down 5 percent from a year ago. Net income was $2 billion, down 29 percent.
Investor wants PepsiCo to buy maker of Oreos
NEW YORK — Activist investor Nelson Peltz says he wants PepsiCo to buy Oreo cookie maker Mondelez and spin off its own underperforming beverage unit.
In a CNBC interview, Peltz said he talked about the proposal with PepsiCo CEO Indra Nooyi. He said he has a meeting planned with Mondelez’s CEO.
Speculation that Peltz could push for a combination of the snack food giants began earlier this year, with his Trian Fund Management disclosing stakes in the companies.
Google may unveil new Nexus tablets July 24
SAN FRANCISCO — Google appears to be getting ready to introduce the next generation of its Nexus tablets.
The unveiling is likely to come at a July 24 event in San Francisco. Google sent invitations Wednesday to the media. The event will be hosted by an executive who oversees the company’s Android and Chrome operating systems.
Android, the world’s leading mobile operating system, powers Google’s line-up of Nexus tablets. Those devices have emerged as a popular alternative to Apple’s iPad since Google released the first Nexus tablet with a 7-inch display screen last July.
Co-founder of Subway is treated for leukemia
NEW YORK — Subway says its co-founder and president Fred DeLuca has been diagnosed with leukemia. The sandwich chain said DeLuca, 65, is being treated and “doing well.” It said its management team is running the day-to-day operations and that DeLuca continues to hold his title. Subway has more than 39,000 locations.
Mattel’s 2Q profit falls, Barbie sales slide again
NEW YORK — Vampy teen Monster High dolls are taking a bite out of squeaky-clean Barbie. Mattel said Wednesday its second-quarter net income fell 24 percent, hurt by a continued slide in Barbie sales and a $14 million write-down on the toy maker’s Polly Pocket line.
It was the fourth straight quarter of sales declines for Barbie, one of Mattel’s biggest and most iconic brands, Mattel said its Monster High and other doll lines were likely sapping sales from the 54-year-old doll.