Europe's cuts spur another stock slide
NEW YORK -- Stocks tumbled for a second day Friday after concerns grew that the deep spending cuts under Europe's bailout plan would slow a global recovery.
The Dow Jones industrial average ended down 163 points but closed well off its lows of the day. The Dow and other major stock indexes still posted big gains for the week after rocketing higher Monday on hopes that a bailout plan for Europe would prevent a debt crisis in Greece from spreading.
The latest drop followed a slide of more than 3 percent in European markets. The euro dropped to a 19-month low against the dollar.
Investors seeking safety piled into Treasurys and the dollar. Gold settled lower after hitting another record. Crude oil sank nearly 4 percent.
Outlook improves for retailer Penney
NEW YORK -- J.C. Penney said its first-quarter net income more than doubled as the department store operator benefited from sales improvements across most types of merchandise and tighter inventory.
The retailer raised its full-year guidance Friday, but even the higher forecast and the second-quarter outlook was muted as its consumers remain "concerned about their budgets."
The chain posted net income of $60 million for the quarter ended May 1 compared with $25 million in the year-ago period. Revenue rose 1.2 percent to $3.93 billion. Revenue at stores opened at least a year rose 1.3 percent.
Daimler seeking to delist NYSE shares
DETROIT -- German car maker Daimler AG wants to pull its shares off the New York Stock Exchange due to low trading volume and to reduce the complexity of its financial reports, the company said Friday.
Daimler, the maker of Mercedes-Benz, told the stock exchange of its intentions Friday, and has applied for delisting with the Securities and Exchange Commission, a spokesman said.
After delisting, U.S. shareholders can continue to trade the shares at most major banks and through major exchanges in Germany. Daimler has a Mercedes van assembly plant in North Charleston.
Georgia bank is 69th to be seized by FDIC
WASHINGTON -- Regulators on Friday shut down a small bank in Georgia, bringing the number of U.S. bank failures this year to 69. The Federal Deposit Insurance Corp. took over Satilla Community Bank, based in Saint Marys, Ga., with about $134 million in deposits and $135.7 million in assets.
Ameris Bank agreed to acquire the assets and deposits. The failure is expected to cost the deposit insurance fund about $31.3 million.
Sara Lee CEO goes on medical leave
DOWNERS GROVE, Ill. -- Sara Lee Chief Executive Officer Brenda Barnes is taking a temporary medical leave, effective immediately.
The company declined to provide further information about Barnes. She has been CEO since 2005. Chief Financial Officer Marcel Smits will take over as interim CEO until the 56-year-old Barnes returns.
The company is known for its namesake breads and brands such as Jimmy Dean, Hillshire Farms and Ball Park.