NEW YORK — Financial stocks dragged Wall Street lower Monday as traders worried that last week's rally was overdone. Investors who had been focused on which banks would pass the government's "stress tests" are now turning to the fallout from the evaluation.
Three banks that got good marks on the tests last week said Monday they plan to issue shares and repay federal loans they received last fall. Concerns about more shares on the market weighed on financial stocks.
Technology shares saw some modest buying after Microsoft detailed plans to raise money through a debt offering for the first time.
SPAWAR executive resigns from post
Philipp H. Charles resigned Friday as technical director of the Space and Naval Warfare Systems Center Atlantic, less than a year after being promoted to the top civilian job at a pillar of area's defense industry.
"Phil cited personal reasons as he pursues other options," SPAWAR said in a statement Monday.
Charles had been with the high-tech engineering command at the Naval Weapons Station since 1997. He was chief engineer before being promoted to the top civilian posting last July.
Ken Slaughter was named interim technical director Monday. A search is under way to find a permanent replacement, SPAWAR said.
Paper mill boosts sales for KapStone
First-quarter sales at KapStone Paper and Packaging Corp. more than doubled to about $141 million, fueled by its purchase last summer of the MeadWestvaco Corp. mill in North Charleston.
The company also reported a 54 percent increase in its profit for the first quarter, helped partly by a onetime gain from the sale of a business and a benefit from an alternative fuel mixture tax incentive. KapStone posted a first-quarter net income of $11.1 million.
"All things considered, we think it was a good quarter over a particularly difficult period," said Roger Stone, CEO.
CEO to resign from coastal developer
MYRTLE BEACH — Jim Rosenberg, the president and chief executive officer of the big Grand Strand real estate development firm Burroughs & Chapin Co. Inc., will leave the company in the next few months after less than two years on the job, according to a news release today.
Rosenberg, who lost his son late last year, cited personal reasons. He said he plans to devote more time to charitable work.
Bill Pritchard, a longtime executive at B&C, will serve as interim CEO while the company seeks a replacement, The Sun News reported.
BB&T selling stock, will slash dividend
WINSTON-SALEM — BB&T said it will sell $1.5 billion in common shares to help repay the government's investment in its preferred stock and warrants through the U.S. Treasury's TARP Capital Purchase Plan.
BB&T said also it is cutting its third-quarter dividend to 15 cents a share, down 68 percent. The bank said the cut will save $725 million annually.
The government's bank stress tests showed that BB&T was one of nine major banks that had sufficient capital to withstand a sharp downturn.