July 12 - Summary of business headlines: Stocks hit record highs, again; Boeing stock falls after plane fire; JP Morgan and Wells Fargo earnings beat estimates; UPS warns; Hulu no longer for sale. Bobbi Rebell reports.
TV AND WEB RESTRICTIONS~**ETHIOPIAN AIRLINES PLANE FIRE FOOTAGE: NO ACCESS UK / NO ACCESS DAYBREAK / NO ARCHIVE USE~** Stocks manage late session gains- coming back after Boeing stock dragged on the Dow. The Dow and the S&P both hitting new record highs on Friday. For the week- the Dow up 2.1 percent . The Nasdaq up 3.5 percent. It was the second best week of the year. Boeing stock falling after a Dreamliner operated by Ethiopian Airlines caught fire at Britain's Heathrow airport. Dreamliner component makers were also lower- including Honeywell and Spirit Aerosystems. Two of the top U.S. banks both turned in better-than-expected profits. The results from JP Morgan Chase and Wells Fargo beat those forecasts largely because they were able to scale back the amount of money they have to set aside to cover future losses. Eric Oja of S&P Capital IQ: SOUNDBITE: ERIK OJA, EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING: "One thing we saw from the two banks today is that credit quality from loans continues to improve strongly and that really helps boost the bottom line because they can take lower loan loss provisions." Their net interest income- which is what the bank makes from their loans and other assets after their costs- was actually down. The stocks were relatively flat. United Parcel Service delivering a warning- its second quarter profits will be below forecasts- its customers are looking for cheaper ways to send stuff- and the company also blames the slowing U.S. industrial economy. The for sale sign is coming down for Hulu. The owners- Walt Disney, Twenty-First Century Fox and NBC Universal are keeping their ownership stake in the streaming video site after all. They will invest $750 million to help it grow. It had offers- some said to be in the billion dollar range from a growing list of shoppers- including DirecTV, AT&T and former News Corp president Peter Chernin, and Time Warner Cable sources told Reuters. There was another false start back in 2011. In Europe- the major indexes were also mixed- in part because of renewed concerns about the political risks in the euro zone.