Stocks advance for third day
After Bank of America agreed to pay $8.5 billion to settle claims against mortgage-backed securities, its shares rose 3% Wednesday.
June 29th, 2011
07:19 PM ET

Stocks advance for third day

Some highlights from the day's business news:

U.S. stocks closed higher for a third day on Wednesday, as bank shares boosted the broader market following Bank of America's $8.5 billion settlement over mortgage securities claims.

Investors also cheered Greece's approval of austerity measures on Wednesday, which are meant keep the country from defaulting.

The Dow Jones industrial average added 73 points, or 0.6%, to close at 12,261. Bank of America was the biggest gainer on the blue-chip index, with shares rising 3% after the bank announced a multi-billion-dollar settlement. Other banks stocks followed suit, with shares of Citigroup, Wells Fargo and JPMorgan Chase all moving higher.

The S&P 500 gained 11 points, or 0.8%, to 1,307; and the Nasdaq Composite added 12 points, or 0.4%, to 2,740

Fed gives banks a break on card swipe fees

Banks and credit card issuers got a break Wednesday from the Federal Reserve.

The agency passed a cap on the fees that the biggest banks charge retailers when customers use debit cards, and it turned out to be more generous than some banks and card issuers had anticipated.

The Fed approved a 21-cent limit on so-called swipe fees – about half of the current average swipe fee of 44 cents. In addition, the Fed proposed a variable additional fee of a few cents to allow for the cost of fraud prevention.

The Fed had originally proposed a 12-cent cap back in December, but its board members said they thought their final decision took into consideration the concerns of all the industries impacted.

Banking groups say the 21 cent cap on swipe fees will slash revenue by 45%.

Myspace sold to Specific Media

Myspace has a new owner: Digital ad network Specific Media said Wednesday that it has acquired the ailing social network from News Corp.

Financial terms of the deal were not disclosed, but multiple news reports put it at around $35 million - far less than the $580 million News Corp. paid for Myspace in 2005.

In a written statement, Specific Media CEO Tim Vanderhook praised Myspace as a "recognized leader" in social media, and said he looks forward to using Myspace to "drive the next generation of digital innovation."

The company also announced that music and entertainment artist Justin Timberlake will "take an ownership stake" and "play a major role" in developing a vision Myspace's future. Specific Media said it will offer a more specific roadmap later this summer.

- CNNMoney's Ken Sweet, Catherine Clifford and Laurie Segall contributed to this report.

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Filed under: Business • Economy
soundoff (15 Responses)
  1. Jeriah

    The Good Lord will make the American stock market grow provided we sinners repent and praise Him.

    "For he that invests his corn will reap dividends and not hunger" Luke 14:3

    "He who uses his wealth to smite the heathen shall dine in my house" Mark 22:14

    June 29, 2011 at 8:35 pm | Report abuse |
    • michaelfury

      June 30, 2011 at 7:23 am | Report abuse |
  2. Ed Sr

    Wooooooohooooooo! The rich get richer!

    June 29, 2011 at 11:21 pm | Report abuse |
  3. Ellis-Panama

    I can't sleep. I did my plump wife and my boyfriend multiple times since Saturday night.

    June 30, 2011 at 1:56 am | Report abuse |
  4. Ellis-Panama

    I hope I don't look fat in this black French evening dress. Really contrasts my white high heels.

    June 30, 2011 at 2:02 am | Report abuse |
  5. Ellis-Panama

    My secret for staying thin... Barf.

    June 30, 2011 at 2:03 am | Report abuse |
  6. Ellis-Panama

    Ed Sr. You don't know what rich is until you've seen me nak ed. Woooooohooooo. @Jeriah, One date with me and you'll see corn in a different way.

    June 30, 2011 at 2:09 am | Report abuse |
  7. Ellis-Panama

    Jeriah,you only have to pay .21 cents instead of .44 when you swipe your asss on the swiper to purchase women's panties. Good for you. Let's do lunch some day in Florida.

    June 30, 2011 at 2:16 am | Report abuse |
  8. Ellis-Panama

    I wonder what Joey Isotta is doing right now. I bet he's su cking a cow's nip ples right now. He loves that kind of thing. Right baby? You sweetheart.

    June 30, 2011 at 2:24 am | Report abuse |
  9. Ellis-Panama

    I am going to eat a looong hot dog after my swim. Then I am going to BARF!!!

    June 30, 2011 at 2:32 am | Report abuse |
  10. SYBIL

    Oh, Ellis-Panama,
    I just love men with eating disorders. So thin, and everything...
    I go to Overeaters Anonymous myself–every day...I have that same disease you do, bull dy–uh bull something or other.
    Can you do the back stroke?

    June 30, 2011 at 5:43 am | Report abuse |
  11. Dr. Dipstick

    Over-investing is not a disease, neither is overeating. "Mom, can I have another box of twinkies?" No, you have a disease son. I mean, who tells their kids that they are fat from disease? "You are diseased son. You were born with it."? It doesn't have anything to do with the red meat and dairy spiked with steroids and hormones some parents force their children to eat in a vain attempt to save a few food dollars. It has nothing to do with couch potato/lack of sunshine and excercise...endless hours of video. None of that has anything to do with fattness? As if you were either born fat or not, your personal choices have nothing to do with it. "I'm not responsible, I was born with a disease that keeps me from making responsible choices that lead to a long and healthy life." Who believes this "born that way" crap, so can it already?

    June 30, 2011 at 7:54 am | Report abuse |
  12. michaelfury

    What were the fees on these "swipes"?

    June 30, 2011 at 8:57 am | Report abuse |
  13. Sheryl

    Oh, Dr. Dipstick–but google "binge eating disorder" in the APA DSM IV or V, and you may be mightily surprised to learn that a psychologist can treat an overeater and bill his patient's insurance company for it. You surely may. Be. Surprised, I mean.
    And just wait till ObamaCare cuts in!
    @ Ellis: try an Empire black gown, if you've had a big bowl of caviar or something before going out.
    I'd just love to see you in those white heels, Swimmer! Do you wear seams?
    Ever any fishnet?
    How plump is your wife, anyway?

    June 30, 2011 at 9:29 am | Report abuse |
  14. Ellis-Panama

    @Sheryl, she is a nice round plump the way I like. 5'3" 152 lbs. Not fat,but overweight the way I like. I like slim men too. Are you a plump woman?

    June 30, 2011 at 9:38 pm | Report abuse |