U.S. stocks fall on concerns over disappointing corporate earnings. Read about other top business news stories of the day.
U.S. Stocks Take a Dive
U.S. stocks fell sharply Tuesday on investor concerns over disappointing corporate earnings, CNNMoney reports. The energy, utilities and technology sectors joined the decline following warnings from two Fortune 500 companies, Applied Material and Advanced Micro Devices, that revenues would miss expectations. Reporting later this week are JPMorgan Chase and Well Fargo.
Analysts are expecting overall lower corporate earnings compared to the first quarter, according to CNN, which reports that yesterday the Dow Jones Industrial Average closed 0.7 percent lower, the S&P fell 0.8 points and the Nasdaq dropped by 1 percent.
Fitch: U.S. Credit Outlook Remains Negative
The negative outlook for America’s AAA credit rating is unlikely to change before 2013, according to Fitch Ratings, which is waiting to assess progress toward reducing the nation’s deficit following the presidential elections in November, Bloomberg News reports.
Supporting the top credit rating are a diversified and productive economy, and the dollar’s status as the reserve currency, while the negative outlook reflects widespread dissent over how to reduce the national debt, reports Bloomberg, citing a statement released by Fitch yesterday.
China Concerns Drive Down Emerging-Market Stocks
Declining hopes for a rebound in China’s economy sent emerging-market stocks lower for the fifth consecutive day yesterday, Bloomberg News reports. The MSCI Emerging Markets Index dropped 0.2 percent to 934.25.
Chinese imports rose a lower-than expected 6.3 percent in the 12-months ending in June, while growth in Chinese exports slowed to 11.3 percent in June from 15.3 percent in May, according to Bloomberg News. The data indicates that China, the world’s second-largest economy, is unlikely to strengthen demand for economies in the second half of the year.
Maybe They Didn’t Like “Cajun Justice?”
NBC Universal, a unit of cable operator Comcast Corp, will sell its 15.8 percent stake in History Channel owner A&E Television Networks LLC to the other partners in the venture for $3.02 billion in cash, Reuters announced. Comcast sold its stake in A&E for $1 billion more than it said it was worth only a few months ago. The stake sale comes two months after Comcast said it would exercise an option to sell "a substantial portion" of its holding to its joint-venture partners Disney-ABC Television Group and Hearst Corp.
Google Agrees to Fine in Privacy Case
Google has agreed to pay a $22.5 million to settle allegations that it broke a privacy promise by secretly tracking the online activities of millions of people who use Apple's Safari web browser, the Associated Press reports. The FTC has not yet approved the agreement, which would be the largest penalty ever imposed by the agency. The Wall Street Journal was first to report the news on the pending settlement, the AP said.
Money Back Guarantee to Drive Chevy Sales?
General Motors announced Tuesday it will allow Chevrolet buyers to return their 2012 or 2013 vehicles for up to one or two months after making the purchase, USA Today reports. The “Chevy Confidence” program comes with several conditions. The cars must be bought “during the program” and have less than 4,000 miles on the odometer with “no damage,” GM said in a statement. The Chevy program echoes Hyundai’s “Hyundai Assurance” program, which allowed customers to return their new cars if they lost their jobs, USA Today noted. Chevrolet reached 4.76 million units in 2011 and is expected to approach the 5 million mark for global sales this year.