Market Minute: Bezos Snaps Up Media Giant; American Eagle Disappoints

DailyFinance Staff

All of the sudden, the newspaper business is hot again, but a trendy retailer has gone cold. Those and more are what's in business news Tuesday.

U.S. stocks mostly lost ground in quiet trading Monday on Wall Street. The Dow industrials (^DJI) fell 46 points and the S&P 500 (^GPSC) lost 2, while the Nasdaq (^IXIC) added 3.

Jeff Bezos washington post amazon.com acquisitions newspapers
Reed Saxon/APAmazon.com CEO Jeff Bezos

For the second day in a row, we can tell you about the sale of a major American newspaper. The Washington Post has been bought by Jeff Bezos for $250 million. Bezos is chairman of Amazon.com (AMZN), but he's buying the paper on his own. He's expected to make technology a greater part of the business.

The Washington Post Co. (WPO) will change its name and continue to operate Kaplan education, its TV business and some magazine titles. On Monday, we reported the Boston Globe is being sold to the primary owner of the Boston Red Sox.

American Eagle Outfitters (AEO), the trendy retailer of teen apparel, is not so trendy on Wall Street today. Its shares are set to tumble after the company warned its quarterly earnings will fall far short of expectations. Competitors such as Abercrombie & Fitch (ANF) could also take a hit.

But shoe retailer DSW (DSW) has raised its outlook and announced plans for a 2-for-1 stock split.

Time Warner Cable (TWC) has made an innovative proposal to end its blackout of CBS (CBS) owned programming in New York, Los Angeles and other cities. Time Warner says it will let subscribers buy CBS on an a la carte basis, allowing the network to charge whatever it wants, but customers would have the option of not receiving or paying for it. CBS called the plan "a sham."

Sony (SNE) has rejected a proposal from one its largest shareholders to sell or spin off its huge entertainment division.

And Intel's (INTC) computer security firm McAfee is about to lose its chief technology officer, Phyllis Schneck. She will reportedly head up cyber-security for the Department of Homeland Security.

-Produced by Drew Trachtenberg.

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