Stocks fall, bonds up sharply…FedEx severs ties with Amazon…CVS swings back to profit
NEW YORK (AP) – Stocks are sinking again on Wall Street as fearful investors dump stocks and shovel money into bonds. The Dow fell more than 500 points in early trading before recovering some of the losses. Markets have been volatile this week after Washington and Beijing raised the stakes in their trade war. Bond prices rose sharply, sending yields to their lowest level in nearly three years.
NEW YORK (AP) – FedEx is severing ties with Amazon as the online retailer builds out its own delivery fleet and becomes more of a threat. The decision by FedEx illustrates how e-commerce has become universal as major retailers ramp up their online presence. The announcement that FedEx would no longer make ground deliveries for Amazon comes two months after the delivery company said it was terminating its air delivery contract.
WOONSOCKET, R. I. (AP) – CVS swung back to a profit in the second quarter and easily beat expectations thanks in part to its acquisition of the health insurer Aetna. The drugstore reported profits of $1.94 billion, or $1.49 per share. According to Zacks Investment Research, earnings when adjusted for one-time items were $1.89 per share, which was 19 cents better than expected. CVS’ revenue also topped expectations.
NEW YORK (AP) – Disney dropped 6.7% after reporting results that fell far short analysts’ forecasts. The media giant said its newly acquired Fox entertainment businesses did poorly. CEO Bob Iger (EYE’-gur) said one of the biggest issues affecting earnings was underperformance at the Fox movie and TV studio. Disney announced its results after the market closed yesterday.
LONDON (AP) – British Airways has canceled more than 100 flights to and from London airports after its check-in systems were hit by computer problems. The airline says a “systems issue” is causing delays and cancellations for short-haul flights from Heathrow, Gatwick and London City airports. The airline canceled 117 flights due to operate to or from Heathrow, and 10 Gatwick flights, stranding about 20,000 passengers.