Dow edges closerto breaking record
NEW YORK -- Technology and financial stocks posted big gains Wednesday as a surprising summer rally continued, setting the first Nasdaq record since April and leaving the Dow just a chip shot from new highs.
The Dow Jones industrial average rose 89.93 to 9,174.97, the blue-chip barometer's highest finish since its record close of 9,211.84 on May 13.
The technology-heavy Nasdaq composite index rose 27.28 to 1,935.39, rushing past its previous best close of 1,917.61, set on April 22.
The New York Stock Exchange composite rose 4.59 to a record 594.35 for its third record in four sessions, but advancing issues outnumbered decliners by only a 7-to-5 margin.
Big changes urged for Motorola
CHICAGO -- Motorola, the world's largest maker of telecommunications equipment, must make radical changes to control its immense size and spark a turnaround, analysts said Wednesday.
Motorola is putting the finishing touches on a long-awaited reorganization plan, to be unveiled as early as today, after its 13-year string of profitable quarters was halted. The company has already announced plans to lay off 15,000 workers.
Motorola on Tuesday reported a second-quarter loss of $1.3 billion on huge restructuring costs and sharply lower sales in all but one of its divisions. Its stock tumbled $2.62 1/2 , or 5 percent, to $52.37 1/2 per share in late trading Wednesday on the New York Stock Exchange after executives warned the third-quarter results will be just as dismal.
CSX gives approval to dividends
The board of directors of CSX Corp. approved regular quarterly dividends on the company's common stock of 30 cents per share, payable Sept. 15 to shareholders of record Aug. 25.
Yahoo does surprisingly well
NEW YORK -- Yahoo Inc., the Internet darling whose stock recently has rocketed, on Wednesday reported unexpectedly strong quarterly results as millions more people visited its popular Web site.
Yahoo also disclosed that Softbank Holdings of Japan paid $250 million to boost its stake in the company to 31 percent.
Yahoo, based in Santa Clara, Calif., said it lost $36 million, or 81 cents per diluted share, in the three months ended June 30. That was wider than the loss of $21.6 million, or 50 cents per diluted share, in the comparable year-ago period. But excluding a one-time charge of $44 million for an acquisition during the period, Yahoo earned $8.1 million, or 15 cents per share -- far outperforming analysts' estimates of 9 cents per share, according to a survey by First Call Inc.
Revenue grew to $41.2 million from $14.1 million.
Price of Folgers coffee to drop
CINCINNATI -- The price of Folgers coffee is dropping after a record Brazilian coffee harvest.
Procter & Gamble Co. announced Wednesday it will cut the wholesale price of Folgers' 13-ounce cans of ground regular and decaffeinated coffee by 20 cents.
The cuts, which take effect Aug. 24, are the third this year. P&G last reduced Folgers' prices by 10 cents in May.
Folgers' latest cut trims the price of its regular ground blend to $2.31 and of decaffeinated ground coffee to $3.01. In addition, the list price of Folgers Instant Coffee 8-ounce size decrease by 12 cents to $3.54.