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Data Trumps Investors’ Credit Fears
Stocks edged higher Wednesday, as stronger-than-expected payroll data outweighed lingering questions regarding the financial sector.
Lehman Rebounds on Buyback Report
Shares of Lehman Brothers (NYSE:LEH) rebounded after opening lower Wednesday, as investors digest a report that the firm bought back “large amounts” of its own capital during this week’s swoon, according to The Wall Street Journal.
U.S. Economy: Service Growth Slows Less Than Forecast
Growth in U.S. services industries slowed less than economists forecast in May as a jump in new orders offset a decline in employment.
Walgreen to Pay $35 Million To Settle Drug-Switch Charges
Walgreen Co. (NYSE:WAG) has agreed to pay $35 million to settle allegations that it improperly switched customers to more expensive forms of pills paid for by Medicaid, the government health care program for the poor. A lawsuit alleging fraud by the chain-drugstore company was brought by an Illinois pharmacist and joined by the federal government and 42 states that paid for the medication.
American Express Outlook Lifts Shares
American Express (NYSE:AXP) shares jumped as much as 5% Wednesday morning, as the credit card and travel services company maintains confidence in its earnings growth even as other financial stocks struggle.
Yahoo Says Microsoft Talks Go On, Wins Wal-Mart Deal
Yahoo! Inc. (NASDAQ:YHOO) President Susan Decker said the Internet company is still in talks about combinations with Microsoft Corp. (NASDAQ:MSFT), amid efforts to boost sales and win a fight with shareholders for control of the board.
Smucker to Buy Folgers For Nearly $3 Billion
J.M. Smucker Co. (NYSE:SJM) said Wednesday it has agreed to buy the Folgers coffee business from Procter & Gamble Co. (NYSE:PG) in an all-stock deal valued at nearly $3 billion.
Xilinx Rises After Announcing It Will Eliminate 250 Jobs
Xilinx Inc. (NASDAQ:XLNX), the largest maker of programmable semiconductors, rose as much as 4.5 percent in Nasdaq trading after announcing it would cut 250 jobs to make operations more efficient.
AMD Unveils Notebook PC Chips
Long deemed an also-ran in the notebook PC market, Advanced Micro Devices (NYSE:AMD) is ready to get serious. On Wednesday, the Sunnyvale, Calif., company unveiled a new group of chips specifically designed for notebooks, representing AMD’s most concerted effort yet to get a foot in the booming market for mobile PCs.
Softbank, Telefonica Reach Deal To Sell iPhone in Japan, Spain
Japanese mobile-phone operator Softbank Corp. (TYO:9984) said Wednesday that it reached an agreement with Apple Inc. (NASDAQ:AAPL) to sell its iPhones by the end of the year, putting to rest speculation about who Apple would partner with in Japan. Separately, Telefonica SA (NYSE:TEF) announced it had reached a deal with Apple to sell the iPhone in Spain.
Disney Gains on Speculation of Higher Ad Rates at ABC
Walt Disney Co. (NYSE:DIS), the second-largest U.S. media company, rose the most in almost four months in New York trading on speculation its ABC broadcast network is commanding advance advertising rates above analysts’ estimates.
JPMorgan Plans to Ramp Up Clearing
One benefit of JPMorgan Chase’s (NYSE:JPM) acquisition of Bear Stearns ( NYSE:BSR) is that the company could potentially save big money by moving costs associated with settling trades in-house.
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