Dennis Seid 4/14/09
Retail sales report
halts market rally
NEW YORK – A surprisingly weak retail sales report, combined with a sharp drop in wholesale prices, overshadowed better-than-expected earnings reports from Johnson amp& Johnson and Goldman Sachs, leading the Dow Jones industrial average down 137.63, or 1.7 percent, to 7,920.18.
The Standard amp& Poor’s 500 index fell 17.22, or 2 percent, to 841.51, and the Nasdaq composite index fell 27.59, or 1.7 percent, to 1,625.72. The Russell 2000 index of smaller companies fell 14.83, or 3.2 percent, to 453.22.
EBay to spin off
Skype with IPO
NEW YORK – EBay Inc. plans to spin off its Internet communications service Skype through an initial public offering.
San Jose, Calif.-based eBay expects to complete the IPO in the first half of next year, though it says the timing will be based on market conditions.
EBay bought Skype for $2.6 billion in October 2005. It took a major writedown on the business in 2007, essentially acknowledging it had drastically overvalued it.
In a statement, Chief Executive John Donahoe says it’s clear Skype has “limited synergies” with eBay’s online marketplace and with its payment service, PayPal.
Intel CEO says PC
SAN FRANCISCO – Intel Corp.’s CEO says personal computer sales “bottomed out” during the first quarter and that the industry is recovering.
The chip maker reported a profit of $647 million, or 11 cents per share, blowing past Wall Street’s tepid forecast of 3 cents per share.
Sales of $7.1 billion were about $100 million higher than estimates.