Aug. 14 - Summary of business headlines: Stocks down after Macy's miss; Apple crosses $500, Deere's record earnings; Cisco down after results; UPS plane crash; Americans carry less debt; Charges against former JP Morgan employees. Bobbi Rebell reports.
Consumers held on to their money- costing investors on Wednesday. Stocks were down across the board- as weak earnings from Macy's dragged down consumer stocks. Macy's stock was heavily discounted by investors after the retailer said it made less money than expected this summer - and that earnings will continue to fall short for the rest of the year. After the bell, network equipment maker Cisco reported higher earnings and revenue- in line with Wall Street expectations- but its outlook was less than robust. St. Louis Federal Reserve president James Bullard says the Fed needs to gather more evidence that the economy is improving- and that inflation is heading higher before trimming back its massive bond buying policy. New data out Wednesday showed inflation remains firmly in check- U.S. producer prices were flat in July- a rise had been expected. Apple shares regaining their health- hitting $500 for the first time since January. Billionaire investor Carl Icahn tweeted he had a "large position" in Apple- and says it could be worth as much as $700 if CEO Tim Cook pushes for a larger stock buyback. Deere stock fell - despite reporting record third quarter earnings. There are concerns that farm-belt spending and commodity prices could be about to weaken. A United Parcel Service plane crashed and burst into flames as it approached the airport in Birmingham, Alabama. Both the pilot and co-pilot were killed. The plane was an Airbus A300. Shares of UPS were down slightly. Two former JP Morgan employees are facing criminal charges related to the so-called London Whale $6 billion trading scandal. Federal prosecutors charged Javier Martin-Artajo and Julien Grout with wire fraud and conspiracy to falsify books and records- saying they deliberately tried to hide hundreds of millions of dollars in losses on trades. Americans are carrying less debt. Total consumer debt was just over $11 trillion in the second quarter- down 7-tenths of a percent from the previous quarter according to the New York Fed. Over in Europe, stocks were mostly higher on data that showed the euro zone had emerged from the recession.