Tuesday Evening Business Brief
July 8, 2014, 6:53 PM
- The stock market closed lower for a second day in a row as investors position themselves for corporate earnings reports. The Dow industrials fell 117 points today. The S&P 500 lost 13, and the Nasdaq lost 60 points. Technology and small-company stocks fell more than the rest of the market. Major U.S. companies start to report their earnings this week.
- The car-hailing service Uber is taking on New York City's taxis, temporarily dropping some of its prices by 20 percent. The company says the price of its UberX lower-end service is now cheaper than the rate charged by the city's famous yellow cabs. For instance, a ride from Grand Central Terminal to the financial district would now cost roughly $22, down from $28 before the sale. Uber said a similar ride in a yellow taxi costs $24.
- The parent company of the Showboat Casino Hotel said today it would consider selling the property to another casino operator if it made a reasonable offer and could be licensed. Gary Thompson, a spokesman for Caesars Entertainment, said the company has received expressions of interest and will do its due diligence if it receives a reasonable offer. Caesars plans to close the Showboat on Aug. 31.
- The brother of an imprisoned ex-billionaire hedge fund founder was acquitted of conspiracy today, handing Manhattan prosecutors their first loss after dozens of insider trading convictions in prosecutions that relied heavily on wiretaps and the testimony of those who pleaded guilty. After the verdict was announced, Rengan Rajaratnam hugged three attorneys before jurors even left the room.
- Alcoa Inc. (AA) has reported a second-quarter profit of $138 million, reversing a year-ago loss, and the results beat analysts' expectations. The company reported strong results in its engineered-products business, which makes parts for industrial customers, while looking to cut costs in its aluminum-smelting segment. Alcoa said net income was 12 cents per share. In the year-ago quarter it lost $119 million, or 11 cents per share.
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