Market Minute: Google Faces Privacy Lawsuit; Canada Sells a Chunk in General Motors
The Dow Jones industrial average (^DJI) rallied 128 points Tuesday, its second straight triple-digit gain. The Nasdaq composite index (^IXIC) rose 22 points and the Standard & Poor's 500 index (^GPSC) gained 12. It was the sixth straight advance for the S&P 500.
A federal appeals court rules that a major lawsuit against Google (GOOG) can proceed. The company is accused of illegal wiretapping after secretly collecting emails, passwords and other personal information as its vehicles roamed through residential areas for its Street View mapping project. Plaintiffs in the case are asking for $10,000 each, but if this turns into a class action case, the financial toll could be significant.
The Canadian government has sold about 20 percent of its stake in General Motors (GM) that it acquired as part of the 2009 bailout of the automaker. The Canadians sold 30 million shares; they still hold about 110 million shares. GM is a major employer in Canada.
Shares of Apple (AAPL) are set to decline for a second straight day. They fell more than 2 percent Wednesday after the company took the wraps off two new iPhone models.
Coldwater Creek (CWTR) is in hot water. Shares of the retailer of women's apparel are set to plunge after the company posted disappointing sales. It also lowered its earnings outlook for the rest of the year.
Another apparel retailer, Oxford Industries (OXM), is also set to decline. The owner of the Tommy Bahama and Lilly Pulitzer brands warned that earnings and sales will miss previous targets.
And Restoration Hardware (RH) posted a quarterly loss due to some one-time charges. But the home furnishings retailer said revenue jumped 30 percent and the company raised its forecast for the full year.
And a federal judge has ruled that Rick's Cabaret International (RICK) owes back pay to former employees. He said the exotic dancers were entitled to a minimum wage salary, rejecting the company's argument that they were independent contractors.
-Produced by Drew Trachtenberg.