U.S. markets gain on Greek vote
NEW YORK, June 29 (UPI) -- U.S. markets posted gains Wednesday after Greece approved an austerity budget that secures a European Union bailout package.
Uncertainty over government debt in Europe has held investors back for weeks. Equities rose across Asia and Europe.
In early afternoon trading on Wall Street, the Dow Jones industrial average added 74.13 points or 0.61 percent to 12,262.80. The Standard & Poor's 500 index gained 10.28 or 0.79 percent to 1,306.95. The Nasdaq composite index added 14.04 or 0.51 percent to 2.743.35.
The benchmark 10-year treasury note fell 11/32 to yield 3.11 percent.
The euro rose to $1.443 from Tuesday's $1.4371. Against the yen, the dollar fell to 80.8365 yen from Tuesday's 81.13 yen.
In Tokyo, the Nikkei 225 index rose 1.54 percent, 148.28, to 9,797.26.
BofA to set aside $14B in settlement
CHARLOTTE, N.C., June 29 (UPI) -- Bank of America said Wednesday it would set aside $14 billion to settle claims that mortgage securities it sold to big investors turned into toxic securities.
The bank said it was ready to pay $8.5 billion in claims made by the Federal Reserve Bank of New York, Pimco, BlackRock, ING Capital LLC, and 18 others.
"This is another important step we are taking in the interest of our shareholders to minimize the impact of future economic uncertainties," BofA's Chief Executive Officer Brian Moynihan said in a statement.
"We will continue to act aggressively, and in the best interest of our shareholders, to clean up the mortgage issues largely stemming from our purchase of Countrywide," he said.
The bank said the settlement would resolve "nearly all of the legacy Countrywide-issued … mortgage-backed" securities, which the bank absorbed when it bought Countrywide in 2008.
BofA said it expected to post a $6.4 billion charge in the second quarter of 2011 related to the settlement.
In addition, $2.6 billion of the $14 billion would be written off as a devaluation on its mortgage business.
BJ's Wholesale Club agrees to $2.8B sale
NEW YORK, June 29 (UPI) -- U.S. retailer BJ's Wholesale Club said Wednesday it had agreed to sell itself to two private equity firms for $2.8 billion.
The buyers in the deal, which must be approved by shareholders, include Leonard Green & Partners, which is already invested in numerous retailers, including Whole Foods Market, Neiman Marcus and Jo-Ann Stores, and CVC Capital Partners, which already owns stake in Pilot Flying J and Leslie's Poolmart, The Boston Globe reported Wednesday.
The purchase price is a 6.6 percent premium over the retailer's closing price on Tuesday, but 38 percent over the company's closing price June 30, 2010, which was one day before it was made public that Leonard Green had purchased a 9.5 percent stake in national retailer and intended to increase its share.
BJ's Wholesale Club made itself available for sale in February. In a statement, the company's board of directors said they had "thoroughly explored and carefully considered alternatives" before agreeing to a deal.
Walmart shaves a dime off gas prices
BENTONVILLE, Ark., June 29 (UPI) -- U.S. retail giant Walmart said Wednesday it would reduce gas prices at some stores by 10 cents a gallon for 90 days to help budget-tight customers.
"Our customers have told us that high gas prices are a top budget concern, nearly as large an expense to their households as food and groceries," Chief Marketing Officer Stephen Quinn said in a statement.
"We listen to our customers," he added.
Walmart said the program it calls "Rollback" will be available "at participating Murphy USA and Walmart gas stations."
The program is available at stores in Arkansas, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, Missouri, New Mexico, North and South Carolina, Ohio, Tennessee, Texas and Virginia.
"Our goal is to make it easy for everyone to save and live better, and we think this gas program is leading in the market because it doesn't require any additional purchase, loyalty card or other restrictions," Quinn said.
