Tech bounce leads indexes to records
U.S. stocks bounced back to record highs Tuesday as investors put an end to a two-day drop for technology companies. Energy and consumer-focused companies also made outsize gains. In a reversal from the two previous days, investors put money into companies that stand to benefit from faster economic growth, including retailers, makers of basic materials like paints and chemicals, energy companies and banks. Big-dividend companies, which are usually considered safer investments, did not do as well as the rest of the market. The Standard & Poor's 500 index picked up 10.96 points, or 0.5 percent, to 2,440.35. The Dow Jones industrial average rose 92.80 points, or 0.4 percent, to 21,328.47. The Nasdaq composite, which has a large concentration of technology companies, rose 44.90 points, or 0.7 percent, to 6,220.37, but did not get back to its record highs. The Russell 2000 index of smaller-company stocks added 6.77 points, or 0.5 percent, to 1,425.98. Energy companies joined the gains as the price of oil reversed an early loss. U.S. crude futures added 38 cents to settle at $46.46 a barrel in New York.
Struggling Time Inc. will cut 300 jobs
Time Inc. is eliminating 300 employees through layoffs or buyouts as the struggling publisher tries to transform its declining print business for the digital age. The job cuts were announced in an internal memo written by Chief Executive Rich Battista, who said a key component of his turnaround strategy is making the company more efficient and reinvesting those resources in growth areas. Battista did not specify the areas of the company that will see the cuts, which amount to 4 percent of Time's total workforce. Before the reduction, Time had about 7,450 employees globally, according to its latest annual report.
Sears is cutting 400 more jobs in Chicago
Sears Holdings Corp. on Tuesday said it would eliminate 400 full-time jobs, with most of the job cuts coming at its suburban Chicago headquarters. The announcement means Sears' headcount there has been cut by more than a third since 2011, when it employed 6,200 people at its headquarters and received a package of tax breaks after threatening to leave the state. Company spokesman Howard Riefs declined to say how many employees work at its headquarters but said the company had already fallen below the number of jobs it was required to maintain as part of the tax break deal. While the majority of the eliminated positions are in the Chicago-area headquarters, some are in Sears' field offices. Sears said it already eliminated open positions and reduced contract employees to lessen the impact of layoffs.