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Wall Street: strong quarter, weak day

Friday, September 28, 2012 - 01:50

Sept. 28 - Summary of business headlines: Wall Street slips as Midwest factory data adds to economic jitters; Consumer income, spending, sentiment higher; Apple apologizes for Maps; Bank of America; Spanish banks need $76 billion cushion. Conway G. Gittens reports.

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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL Wall Street limped out of a strong quarter, hobbled by unpleasant economic data. Stocks finshed down with tech again the underperformer. And it was a similar theme for the week with the Nasdaq losing 2 percent. Manufacturing activity in the Midwest shrank for the first time in three years in September. And in August, consumer incomes rose by only one-tenth of a percent. But that didn't stop shoppers. Personal consumption saw its biggest jump in six-months as consumers dug deeper to pay higher prices at the pump. And consumer sentiment, as measured by Thomson Reuters and the University of Michigan, reached a four-month high in September. Michael Shaoul of Marketfield Asset Management says don't count out the American shopper. SOUNDBITE: MICHAEL SHAOUL, CHAIRMAN, MARKETFIELD ASSET MANAGEMENT (ENGLISH) SAYING: "You don't actually need to have a ton of income growth and we don't think income growth has been particularly strong, but it's modest. It's probably better than government data suggest. But what you have is more personal income available to spend after debt service, significantly more; that drop from 14 to 10 percent is a really, really big number." Apple CEO Tim Cook issuing an apology for Apple Maps via the company's website. The app has been highly criticized since the iPhone 5 went on sale a week ago. Bank of America is shelling out more than $2.4 billion to put to rest lawsuits tied to its purchase of Merrill Lynch at the height of the financial crisis. The settlement is one of the largest ever for a class action lawsuit alleging securities fraud. In Europe: Concerns about Spain weighed on stocks ahead of results of bank stress tests suggesting Spanish banks need $76 billion in extra capital to withstand further shocks. Conway Gittens, Reuters

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Wall Street: strong quarter, weak day

Friday, September 28, 2012 - 01:50