Issue link: https://www.epageflip.net/i/36626
8A Daily News – Friday, July 15, 2011 NEW YORK (AP) — Remarks by Federal Reserve Chairman Ben Bernanke that dimmed hopes for a third round of bond-buying pushed stocks lower Thursday. In a second day of testi- mony, Bernanke told law- makers the Fed expects the economy to improve. He said the central bank would only step in with more eco- nomic stimulus if there is a significant downturn in the economy. ‘‘We’re not prepared at this point to take further action,’’ Bernanke said. Stocks turned immedi- Stocks fall after Bernanke dims stimulus hopes Wall Street the case now,’’ Cleveland said. ately lower after the remarks and fell for much of the day. Bernanke was clarifying statements he made Wednesday that left the door open to new economic stimulus measures. Investors took his earlier remarks to mean that the Fed chairman had all but guaranteed new action to stimulate the economy, said Jeff Cleveland, senior econ- omist at money manager Payden & Rygel. ‘‘They realize that’s not The Standard & Poor’s 500 index fell 8.85 points, or 0.7 percent, to close at 1,308.87. The Dow Jones industrial average fell 54.49, or 0.4 percent, to 12,437.12. The Nasdaq composite fell 34.25, or 1.2 percent, to 2,762.67. It was the fourth day of losses on the stock market out of the last five. Worries that Italy could be the next European country to get caught up in the region’s debt problems have kept investors on edge this week. Google Inc. rose 12 per- cent in after-hours trading after the company reported earnings that soared past analyst expectations. The results calmed investors who were concerned that a leadership shake-up would hurt the company. JPMorgan Chase & Co. rose 1.8 percent after the bank reported that higher investment banking fees raised its net income above analysts’ expectations. ConocoPhillips rose 1.6 percent after the country’s third-largest oil company said it would split in two. One company will be an oil producer, and the other a refinery. Investors preferred two simple businesses to one complicated one. Stocks started higher after applications for unemployment benefits fell to a three-month low last week, a sign that compa- nies are laying off fewer workers. At 405,000, the figure is still above the 375,000 that signals healthy job growth. the risk that the government might fail to make its debt payments if an agreement isn’t reached by an Aug. 2 deadline. In Europe, a threat resur- faced that Italy’s govern- ment could lose control of the country’s debt crisis. Yields on Italy’s debt jumped to their highest level since the introduction of the euro following a bond sale. A debt default for an econo- my as large as Italy’s would hurt lending across the globe. In a separate report, the government also said an increase in car sales and a drop in gas prices pushed up retail sales slightly in June. Stocks were also held back by a stalemate in Washington over raising the country’s borrowing limit. Late Wednesday Moody’s threatened to lower the U.S. credit rating below the high- est grade of triple-A, citing SAN FRANCISCO (AP) — Google Inc. CEO Larry Page’s traditionally frosty relationship with Wall Street turned into a warm embrace Thursday after the Internet search leader released strong financial results for its latest quarter. The results represented Page’s first report card since he became CEO at the start of the second quarter in April, ending the decade-long reign of his mentor, Eric Schmidt. Although he established himself as engi- neering and entrepreneurial genius as Google’s co-founder, Page has made it clear since the company went public in 2004 that he is more interested in innovation than focusing on the short-term earnings targets www.rollinghillscasino.com Marriott International Inc. fell 6.6 percent after the hotel chain said it would earn less in the full year than previously expected. YUM Brands Inc. rose 1.4 percent after the owner of the Pizza Hut, Taco Bell and KFC fast-food chains said its earnings rose on strong international sales. About four stocks fell for every one that rose on the New York Stock Exchange. Volume was light at 3.8 bil- lion. Google 2Q results show company thriving set by stock market analysts. Page’s standoffish attitude had raised concerns that Google might not exceed expectations as consistently as it did under Schmidt. The concern had been weighing on Google’s stock, causing it to lag well behind the technology-driven Nasdaq com- posite index. But the second-quarter results at least temporarily erased the doubts about whether Google can thrive under Page’s unorthodox leadership. Investors signaled their approval by boosting Google’s stock by more than 12 percent. That restored the stock price to where it stood before Page became CEO on April 4.