The number of people who applied for initial jobless claims last week rose from a 14-year low, but was still fewer than economists expected. The Labor Department said weekly jobless claims rose to 302,000 from the previous week’s revised 279,000. Analysts expected 305,000 initial jobless claims last week. The four-week average fell 3,500 to 297,250. It’s the first time the four-week average fell below 300,000 since April 2006.
Bank of America (BAC) was fined nearly $1.3 billion by a federal judge for bad mortgages sold by its Countrywide Financial unit to Fannie Mae and Freddie Mac. BofA acquired Countrywide in 2008 as the financial crisis was unfolding. This comes as Bank of America is in negotiations with the Justice Department to settle claims over other shoddy mortgage securities it sold. The two sides have been at odds for some time over the amount of the penalty.
Whole Foods (WFM) shares fell after the company beat earnings by $0.02, but just missed revenue estimates. Whole Foods reported same-store sales rose 3.9% during the quarter, but that was the worst performance in nearly four years. The company also lowered its earnings and same-store sales outlook for the year, which it also did in May. Whole Foods also announced it’s going to launch its first national marketing campaign and expand home delivery to 12 to 15 markets.
Target (TGT) hired former PepsiCo (PEP) executive Brian Cornell to be its new CEO. In addition to being the head of PepsiCo's Americas Food business, Cornell was also CEO of Wal-Mart’s (WMT) Sam's Club division and the CEO of Michael's arts and crafts stores. This is the first time Target has turned to someone from outside the company to lead it.
Argentina is officially in default again, the second time in 13 years. A deal couldn't be reached for the country to repay $1.5 billion to bond holders. It's going to mean higher borrowing costs for the country, and it may have to devalue its currency.