Intel Corp. Chief Executive Officer Paul Otellini told investors July 13 he is seeing “renewed economic momentum.” A day later, Yum! Brands Inc. Chief Financial Officer Richard Carucci predicted “sustained unemployment and a concerned U.S. consumer.”
Most U.S. stocks fell, halting a six-day rally, as a drop in retail sales and the Federal Reserve’s assessment that the economic outlook has “softened” overshadowed Intel Corp.’s forecast for record profit.
Stocks slid, while Greek, Portuguese and Irish bonds tumbled, gold rose to a record and the yen surged to a 15-year high versus the dollar on concern Europe’s debt crisis will worsen. U.S. and German bonds rallied.
U.S. stocks rose, rebounding from the biggest drop since February, as higher-than-estimated earnings and the Federal Reserve’s pledge to keep interest rates at a record low overshadowed a downgrade of Spain’s debt rating.
The four-year-old CVS Caremark Corp. merger hurt customers by reducing competition and increasing prices, five consumer groups said, adding pressure on the drug retailer after some investors called for a split-up.