Tuesday Afternoon Business Brief
August 5, 2014, 2:36 PM
- Today's slide on Wall Street is worsening, with the Dow industrials down by more than 160 points in mid-afternoon trading. The losses come as traders digest some mixed corporate earnings and a weak indicator on the Chinese economy.
- Target is lowering its forecast for its second quarter, citing the promotional discounts it had to use to attract shoppers. It now expects to earn around 78 cents per share for the quarter, excluding one-time items, down from the 85 cents to $1 per share it previously forecast. Target's reputation has been hurt since it announced in December that hackers stole millions of customers' credit- and debit-card records.
- Gannett is spinning off its publishing business from its broadcasting and digital operations. The company is also acquiring full ownership of Cars.com for $1.8 billion. It follows the Tribune Co., Time Warner Inc. and News Corp. in breaking off print media from its rapidly expanding broadcast operations.
- Subaru is recalling some of its vehicles because the front passenger air bag inflators can rupture, causing metal fragments to fly out when deployed. The recall covers the 2003-2005 Baja, Legacy and Outback, the 2004-2005 Impreza and the 2005 Saab 9-2X made by Subaru. The recall affects only vehicles in Florida, Puerto Rico, Hawaii and the U.S. Virgin Islands, with air bag inflators made by Takata Corp.
- Thousands of workers at the troubled New England supermarket chain Market Basket are rallying in Massachusetts to pressure management to reinstate the company's former chief executive or accept his offer to buy it. The family-owned chain has been in turmoil since June, when a board controlled by Arthur S. Demoulas fired his cousin, CEO Arthur T. Demoulas. Hundreds of warehouse workers and drivers have refused to deliver food to the chain's 71 stores for two weeks, leaving store shelves empty and sending customers elsewhere.
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