Dow falls again as Aug. stock market turns cold
NEW YORK — It’s been a chilly August for the stock market. At the start of the month, the Dow Jones industrial average and S&P 500 hit all-time highs. Now the market is down 4 percent from its peak, and August is on track to be the Dow’s worst month since May 2012.
On Tuesday, the Dow posted in its fifth straight day of losses, the first time that’s happened this year. While the S&P 500 and Nasdaq composite index did rise modestly, it was first time in four days those indices have seen green.
The stock market slide in the last couple of weeks reflects a shift in investor strategy that began in the bond market and spilled into stocks. The spillover then mixed with lingering concerns about the economy, leading to several weeks of volatility, market observers say.
On Tuesday, the Dow fell 7.75 to 15,002.99. The S&P 500 index rose 6.29 to close at 1,652.35. The Nasdaq composite rose 24.50 to 3,613.59.
Kodak wins approval for its bankruptcy plan
NEW YORK — A federal judge has approved Kodak’s plan to emerge from bankruptcy protection. Judge Allan Gropper’s ruling paves the way for the photography pioneer to emerge from court oversight as a new company focused on commercial and packaging printing. The company has said it hopes to emerge from bankruptcy protection Sept. 3.
Founded in 1880, Eastman Kodak Co. filed for protection last year after struggling with increasing competition, the shift to digital photography and growing debt. Since its filing, Kodak has sold off many of its businesses and patents.
Last week, a majority of the company’s shareholders voted to approve its plan to emerge. But some retirees, shareholders and others have objected to it.
Home Depot 2Q results top Wall St. projections
ATLANTA — Home Depot’s second-quarter net income jumped 18 percent to $1.8 billion as surging home sales drove comparable-store sales up by double digits at home and abroad. Revenue climbed more than 9 percent to $22.52 billion,
The nation’s biggest home improvement retailer beat Wall Street expectations and it raised its full-year earnings and revenue expectations again.
Revenue at stores open at least a year, a key indicator of a retailer’s health, increased 10.7 percent. In the U.S., the figure rose 11.4 percent.
Ally to pay gov’t $5.2B it buy preferred stock
DETROIT — Auto financing and banking company Ally Financial took a big step toward exiting U.S. government ownership Tuesday, announcing a deal to pay taxpayers $5.2 billion for preferred stock granted in a 2009 bailout during the financial crisis. Ally is the former financing arm of General Motors.
Under the deal, Ally also will pay the government accrued dividends plus $725 million for the Treasury Department to give up rights to convert its stock to common shares. With the move, Ally will have repaid roughly $12 billion, meaning the government is still about $5.2 billion in the hole.
Best Buy’s cost cutting, web sales drive profits
MINNEAPOLIS — Best Buy said its net income rose sharply to $266 million in the second quarter, as the struggling electronics retailer slashed costs and worked to make its website more competitive. Revenue fell slightly to $9.3 billion, but the electronics company beat expectations Tuesday.
Best Buy has been shuttering underperforming stores and revamping others to offset competition from discounters and online retailers. Under CEO Hubert Joly, the company has instituted a price-matching policy, opened more in-store areas for manufacturers and invested more to train employees.
Such measures are intended to prevent “showrooming,” which is when people go to stores to browse products but then shop online for lower prices.
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