Bank and economic woes hit Wall St; Oracle dives late - Business

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Business News

Stocks drop on financials, oil rebound (Reuters)

Reuters - Stocks fell in skittish trading on Wednesday, led by financial services company shares, while rebounding oil prices fed concerns about the toll of higher energy costs on business and consumer spending.

Merrill asset sale size depends on second quarter loss (Reuters)

Reuters - Merrill Lynch & Co will determine exactly how much of its stakes in BlackRock Inc and Bloomberg LP to sell based on how deep its second quarter loss is, a person briefed on the matter said on Wednesday.

IMF gloomy on growth, warns on inflation (Reuters)

Reuters - It is hard to know how far the global financial crisis still has to run, with the extent of further credit losses hinging on what happens to the U.S. housing sector, IMF chief Dominique Strauss-Kahn said on Wednesday.

GFK says to make better offer for TNS than WPP (Reuters)

Reuters - Germany's GfK Holdings AG said on Wednesday it wants to make a better offer for Britain's Taylor Nelson Sofres TNS than Martin Sorrell's advertising group WPP.

Oil rebounds $2 on Iran missile tests (Reuters)

Reuters - Oil rose $2 to around $138 a barrel on Wednesday, partly recouping a $5 drop in the previous session, after Iran said it had test-fired missiles that could reach Israel and U.S. bases in the region.

China market sees signs of economic policy easing (Reuters)

Reuters - A flurry of visits by Chinese leaders to cities hit by sluggish exports and a reported tax rebate for textile exporters are being interpreted by the market as signals that Beijing might cautiously ease tight economic policies.

NEW YORK (Reuters) - Stocks dropped on Wednesday as financial shares slid when concerns resurfaced that bank profits will take much longer than expected to recover from the housing slump.

By Ellis Mnyandu
NEW YORK (Reuters) - Stocks dropped on Wednesday as financial shares slid when concerns resurfaced that bank profits will take much longer than expected to recover from the housing slump.
Surging oil prices and data showing a tumble in orders for U.S.-made manufactured goods revived concerns that the economy is already in recession.
Bank stocks tumbled across the board when a prominent analyst lowered her first-quarter profit forecasts for Citigroup, Bank of America Corp (BAC.N), JPMorgan Chase & Co (JPM.N), and Wachovia Corp (WB.N). The S&P financial index fell 3.5 percent, marking its biggest setback after rising more than 10 percent in the last two weeks.
Oppenheimer & Co analyst Meredith Whitney said bank profits would not start growing any time soon because of fallout from what she called the worst credit cycle in generations.
Financials are down "on the combination of Citigroup, Meredith Whitney coming out with talk of more potential write-downs and a lot of profit-taking. Financials moved big the last two weeks," said Matt McCall, president of Penn Financial Group in Denver, Colorado.
The other backdrop for the drop in Citigroup's stock was news that the largest U.S. bank by assets has agreed to pay Enron creditors $1.66 billion to settle a lawsuit over its responsibility in the energy trading company's downfall.
The Dow Jones industrial average .DJI finished down 109.74 points, or 0.88 percent, at 12,422.86. The Standard & Poor's 500 Index .SPX dropped 11.86 points, or 0.88 percent, to end at 1,341.13 -- marking the broader market's first decline in four days. The Nasdaq Composite Index slumped 16.69 points, or 0.71 percent, to close at 2,324.36.
After the bell, there was unnerving news from the technology front as Oracle Corp (ORCL.O), a major software maker, posted quarterly revenue that missed Wall Street's forecasts. Oracle shares slid 8.3 percent to $19.20 after the bell from their Nasdaq close at $20.94.

Other news from Business category:

Oil rebounds $2 on Iran missile tests - 09, Jul 2008
LONDON (Reuters) - Oil rose $2 to around $138 a barrel on Wednesday, partly recouping a $5 drop in the previous session, after Iran said it had test-fired missiles that could reach Israel and U.S. bases in the region.

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U.S. regulators probe 2 ex-Credit Suisse brokers: report - 09, Jul 2008
(Reuters) - Federal prosecutors are investigating whether two former Credit Suisse brokers lied to investors about how they placed their money into short-term securities, the Wall Street Journal reported, citing people familiar with the matter.

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IMF gloomy on growth, warns on inflation - 09, Jul 2008
TOYAKO, Japan (Reuters) - It is hard to know how far the global financial crisis still has to run, with the extent of further credit losses hinging on what happens to the U.S. housing sector, IMF chief Dominique Strauss-Kahn said on Wednesday.

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Army says may end Textron helicopter program - 09, Jul 2008
WASHINGTON (Reuters) - The U.S. Army said on Wednesday it might cancel a $6.2 billion Textron Inc armed helicopter program after finding that projected costs had soared more than 40 percent above initial estimates.

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Merrill asset sale size depends on second quarter loss - 09, Jul 2008
NEW YORK (Reuters) - Merrill Lynch & Co will determine exactly how much of its stakes in BlackRock Inc and Bloomberg LP to sell based on how deep its second quarter loss is, a person briefed on the matter said on Wednesday.

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Economic gloom leads to cuts in ad forecast - 09, Jul 2008
NEW YORK (Reuters) - Another closely watched U.S. advertising forecast was cut on Tuesday, the second in as many weeks, in a signal that the industry has begun to buckle under the weight of a slumping economy.

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IndyMac depositors pull cash as mortgage woes grow - 09, Jul 2008
NEW YORK/PASADENA, California (Reuters) - Mortgage lender IndyMac Bancorp Inc said on Tuesday depositors had been withdrawing cash at an "elevated" pace since a key U.S. senator questioned its ability to survive the housing crisis.

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Fed may extend Wall Street lending - 09, Jul 2008
ARLINGTON, Virginia (Reuters) - Federal Reserve Chairman Ben Bernanke said on Tuesday the U.S. central bank may keep an emergency lending facility for big Wall Street firms open longer than it initially intended, a signal the Fed is fearful of shutting do
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Alcoa's profit lower but tops Street forecasts - 09, Jul 2008
NEW YORK (Reuters) - Aluminum producer Alcoa Inc on Tuesday posted a better-than-expected quarterly profit, lifting its shares, as higher aluminum prices and sales volumes offset increased costs.

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Oil steadies after fall to $136 - 09, Jul 2008
SEOUL (Reuters) - Oil was little changed above $136 a barrel on Wednesday after falling more than $5 a day ago when the Federal Reserve chairman said that emergency cash may be available past year-end, boosting the dollar and U.S. stocks.

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Software News

Microsoft sets pricing, fee sharing for services (Reuters)

Reuters - Microsoft Corp introduced on Wednesday pricing for its suite of online services targeted at corporate customers and a revenue-sharing plan to encourage other companies to sell the software company's products.

India Expects Software and Services Revenue Growth to Fall (PC World)
PC World - India's revenue from software and services is expected to be slower this year, according to an industry body.

Google lets people create custom virtual realms (AFP)

AFP - Google has rolled out a challenge to virtual world giant Second Life with free software that lets people create their own online 3D worlds that can be embedded on websites and melded with other online functions.

EA says has complied with FTC request on Take-Two (Reuters)

Reuters - Video game publisher Electronic Arts Inc said on Tuesday it complied with a regulator's request for more information on its Take-Two Interactive Software Inc bid, moving a step closer to buying its rival.

Real Software, Veryant bolster dev tools (InfoWorld)
InfoWorld - Real Software and Veryant are upgrading development tools this week, with Real Software focused on its RealBasic platform and Veryant on Cobol.

VMware shares plunge on CEO change, slowing growth (AP)
AP - VMware Inc. abruptly replaced co-founder Diane Greene as chief executive Tuesday and lowered its sales outlook, triggering alarms that pounded the business software maker's shares to their lowest depths since the company's lucrative public offering 11 months ago.

Oil rebounds $2 on Iran missile tests - 09, Jul 2008

U.S. regulators probe 2 ex-Credit Suisse brokers: report - 09, Jul 2008

IMF gloomy on growth, warns on inflation - 09, Jul 2008

Army says may end Textron helicopter program - 09, Jul 2008

Merrill asset sale size depends on second quarter loss - 09, Jul 2008

Economic gloom leads to cuts in ad forecast - 09, Jul 2008

IndyMac depositors pull cash as mortgage woes grow - 09, Jul 2008

Fed may extend Wall Street lending - 09, Jul 2008

Alcoa's profit lower but tops Street forecasts - 09, Jul 2008

Oil steadies after fall to $136 - 09, Jul 2008