Business Desk
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
WALL STREET
STOCKS FALL ON WEAK HOUSING DATA, FED COMMENTS Economically-sensitive stocks like Alcoa and D.R. Horton took a hit yesterday, as the release of soft data on the housing sector worsened losses initiated by comments from Federal Reserve officials.
The Dow Jones Industrial Average ended yesterday’s session down 72.44 points, or 0.66%, to 10942.11. The Nasdaq Composite Index lost 19.53, or 0.92%, to 2110.42.The Standard & Poor’s 500 Index retreated 11.40, or 0.91%, to 1240.14.
“Everyone expects housing to slow down, because that’s what the Fed has been trying to do. But this [housing] number caught the market off guard,” the chief economist at the nonprofit Center for Innovative Entrepreneurship in Florida, Ken McCarthy, said.
– Dow Jones Newswires
IN THE COURTS
BLACK’S BAIL AT RISK AS U.S. SAYS HE BROKE AGREEMENT Conrad Black was threatened with bail revocation as prosecutors told a judge the indicted former Hollinger International Incorporated chairman hadn’t been honest about the value of the assets securing his freedom.
Mr. Black overstated the value of a Palm Beach, Florida, home he put up as collateral for bail, the United States said today in a court filing. He also understated the amount of a Canadian tax lien on the home and didn’t tell the Justice Department his wife was part owner, prosecutors told a Chicago judge. Mr. Black faces 12 charges of racketeering, money laundering, wire fraud, and obstruction of justice. He is accused him of using a Toronto holding company, Hollinger Incorporated, to enrich himself and his associates at shareholders’ expense.
Hollinger International publishes the Chicago Sun-Times and is also a shareholder of The New York Sun. Shareholders last week voted to change the company name to Sun-Media Group Incorporated.
– Bloomberg News
COURT GIVES PHILIP MORRIS $2B OF BOND The Illinois Supreme Court yesterday returned some of the massive appeal bond that Philip Morris USA posted in a lawsuit over the company’s “light” cigarettes.
The money amounts to $2.15 billion, the tobacco giant said in a statement.The court order did not specify the amount.
The order, agreed to by both sides, gave Philip Morris back some of the cash it was originally required to put up before appealing a $10 billion verdict from Madison County.
– Associated Press
SHORT-SELLER ELGINDY SENTENCED TO MORE THAN 11 YEARS U.S. District Court Judge Raymond Dearie yesterday sentenced short-seller Anthony Elgindy to 135 months, or more than 11 years, in prison for his role in a scheme to manipulate the stocks of small-cap companies. Judge Dearie also sentenced Elgindy to forfeit $1.5 million. Elgindy was convicted in January 2005 of racketeering, conspiracy, and securities fraud.
– Dow Jones Newswires