U.S. Stocks Slide; Goldman Net Falls

Arthi Gupta
20 Jul, 2010
New York City

U.S. stocks decline after Goldman Sachs reported an 82% decline in earnings. U.S. housing starts fall in June. Obama presses the U.S. Senate for extension of unemployment benefits. Goodrich and Mubadala Aerospace sign agreement to form landing gear joint venture in Abu Dhabi.

[R]9:35 AM New York – U.S. stocks decline after Goldman Sachs reported an 82% decline in earnings. U.S. housing starts fall in June. Obama presses the U.S. Senate for extension of unemployment benefits. Goodrich and Mubadala Aerospace sign agreement to form landing gear joint venture in Abu Dhabi.[/R]

U.S. and European markets fall after disappointing earnings from Goldman Sachs and Asian markets traded sideways on optimism that China will not tighten its monetary policy further.

Goldman Sachs reported second quarter revenue fell 36% to $8.84 billion from $13.76 billion in the quarter a year ago. Net income declined 82% to $613 million, or 78 cents a share, from $3.44 billion, or $4.93 a share a year earlier.

President Barack Obama urged the Senate to immediately pass a measure to extend unemployment benefits.

""Even as we work to jumpstart job growth in the private sector, even as we work to get businesses hiring again, we also have another responsibility: to offer emergency assistance to people who desperately need it,"" Obama said. ""We''ve got a responsibility to help them make ends meet and support their families even as they''re looking for another job.""

The U.S. Commerce Department released a report today showing that housing starts fell by much more than expected in the month of June.

The report showed that housing starts fell 5% to 549,000 in June from the revised May estimate of 578,000.

The Commerce Department further stated that building permits rose 2.1% to 586,000 in June from 574,000 in May.

Goodrich Corporation and Mubadala Aerospace, a business unit of Mubadala Development Company, today signed a heads of agreement to establish a joint venture company in the United Arab Emirates to perform maintenance, repair and overhaul work on landing gear.

Under the terms the joint venture company will provide MRO services and rotable support for landing gear on commercial aircraft with its primary focus on customers in the Middle East region.

The company will initially support both Boeing and Airbus commercial aircraft, including the A380 and B777 models, with plans to extend to other commercial and military markets. The facility will be based in Al Ain in the Emirate of Abu Dhabi, alongside other Mubadala Aerospace companies including Strata, the composite manufacturing facility and AMMROC, the military MRO center.

Toyota Motor and Paice LLC entered into an agreement to settle the patent disputes between them. The terms of the agreement are confidential. All lawsuits between the companies will be dismissed.

“I am happy that Toyota and Paice came to an amicable resolution on the use of my power-assisted engine invention,” said Dr. Alex Severinsky, who founded Paice in 1992.

“We have long believed that hybrid vehicles represent the wave of the future for the auto industry and hope that consumers will continue to embrace hybrid vehicles as a meaningful way to reduce emissions.”