Google Inc.’s earnings growth bogged down more than investors anticipated during the second quarter, raising worries that the ailing U.S. economy is starting to touch the Internet search leader. Although Google’s management maintains the company will thrive even if the economy deteriorates further, the results released Thursday caused Google shares to plunge by about 8 percent. The company said it earned $1.25 billion, or $3.92 per share, during the three months ended in June. That represented a 35 percent increase from net income of $925 million, or $2.93 per share, at the same time last year.
NASDAQ panel will keep Sonus
Sonus Pharmaceuticals Inc. of Bothell reported Thursday that a hearings panel of the NASDAQ Global Market had agreed to keep the company’s listing despite a falling stock price if it follows some conditions. They include completion of a reverse stock split, completion of a planned merger with OncoGenex Technologies Inc. of Canada and approval from NASDAQ of the new company’s application for initial listing on the NASDAQ Capital Market. The measures have been proposed to shareholders, and company officials said NASDAQ has given them the time needed for implementation.
Oil prices drop to below $130
Oil prices tumbled below $130 a barrel for the first time in more than a month Thursday, as crude’s dramatic slide entered a third day accompanied by a sharp sell-off in natural gas. The declines accelerated amid growing concerns that the weakening economy and creeping inflation are eroding demand for fossil fuels in the U.S. and other large energy- consuming nations.
Banking sector looks brighter
The banking sector looked a little brighter for a second straight day Thursday after JPMorgan Chase &Co. reported better-than-expected results despite a spike in mortgage and other loan defaults. The bank’s shares gained more than 13 percent Thursday after it reported a 53 percent drop in profit. Following Wells Fargo &Co.’s stronger-than-expected results, investors appear more confident in the struggling banking sector.
Regulators expand Intel investigation
European Union regulators have expanded their antitrust case against Intel Corp., claiming that the world’s largest semiconductor maker has deliberately squeezed rival AMD out of the chip market. The European Commission said Thursday it has added three new charges against Intel, warning that it may order Intel to change its behavior under threat of fines.
Merrill Lynch &Co. posts $5 billion loss
Merrill Lynch &Co. on Thursday reported a $4.9 billion loss amid massive write-downs from soured mortgage positions and other risky investments, and unveiled plans to raise money by unloading assets including its 20 percent stake in Bloomberg LP. It posted its fourth straight quarterly loss as it struggles to respond to the global credit crisis.
From Herald news services
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