New York

Wall Street retreats; Dow falls 226

NEW YORK — Wall Street pulled back sharply Tuesday as investors dealt with disappointing earnings reports and rising concerns about the mortgage market. The Dow Jones industrials fell more than 200 points.

DuPont Co. was the Dow's biggest loser after the chemical maker reported a flat second-quarter profit, as improving sales abroad balanced the ongoing weakness in the U.S. housing and automotive markets. Fellow Dow component American Express Co. said late Monday that its quarterly profit climbed 12 percent on record card member spending. However, the nation's third-largest credit card brand said cardholders are also shirking more payments.

Tuesday's retreat was not surprising, given that the market's recent move into record territory above 14,000 came before companies began reporting quarterly results in earnest. Many investors bet that results would be better than has been the case. A profit warning from mortgage lender Countrywide Financial Corp. on Tuesday also reminded investors that troubles in the subprime market persist.

The Dow gave up 226.47, or 1.62 percent, closing at 13,716.95. The drop was the average's biggest since March 13, when the Dow tumbled 242 points, also amid concerns that subprime woes could infect the broader lending industry.

Twenty-nine of the 30 Dow components fell; only Verizon Communications Inc. notched a gain.

Other major stock indicators also suffered steep declines. The Standard & Poor's 500 index shed 30.53, or 1.98 percent, to 1,511.04. The Nasdaq composite index lost 50.72, or 1.89 percent, closing at 2,639.86.

Declining issues outnumbered advancers by nearly 10 to 1 on the New York Stock Exchange, where volume came to almost 2 billion shares, compared with 1.52 billion Monday.

Minnesota

Earnings rise with Albertsons purchase

MINNEAPOLIS — Supervalu Inc., the nation's No. 3 supermarket chain, said Tuesday that its first-quarter earnings jumped because of its purchase of the Albertsons grocery chain a year ago. And with a potential strike in its Southern California stores averted, it raised the bottom end of its guidance for the year.

Supervalu said it earned $148 million, or 69 cents per share, up from $87 million, or 57 cents per share a year ago. Revenue rose to $13.29 billion from $5.78 billion a year ago.

Analysts surveyed by Thomson Financial were expecting earnings of 69 cents per share on revenue of $13.04 billion.

The results included costs of 8 cents per share from the June 2, 2006, acquisition.

Ohio

Scripps earnings miss estimates

CINCINNATI — E.W. Scripps Co. said Tuesday that its second-quarter profit rose 37 percent but came in below Wall Street estimates because of lower newspaper and TV advertising revenue. The media company also warned that third-quarter profit will miss analysts' estimates, sending the stock down 6 percent.

Scripps posted net income of $97.5 million, or 59 cents per share, for the quarter that ended June 30, versus $71.1 million, or 43 cents per share, a year ago, when Scripps recorded a charge for the sale of the Shop At Home TV network in June 2006.

Income from continuing operations slipped to $97.7 million, or 59 cents per share, from $104.9 million, or 64 cents per share, a year earlier. Income in the most recent quarter was lowered by $5.4 million, or 3 cents per share, because of buyout offers accepted by 137 workers.

Revenue fell to $640.1 million from $641.9 million in the previous year.

Analysts surveyed by Thomson Financial forecast a profit of 61 cents per share on revenue of $665.6 million.

Scripps owns daily and community newspapers in 17 markets, including the Ventura County Star, 10 broadcast TV stations, online search and comparison Web sites, and five cable and satellite television networks. It also has an interest in the United Media licensing and syndication company.

Washington, D.C.

FCC majority backs open access' provision

A majority of the Federal Communications Commission told a House subcommittee that they support an "open access" requirement on one swath of airwaves that will be auctioned early next year.

The provision, put forth by FCC Chairman Kevin Martin, would allow cell phone customers to use any device they would like on a new network encompassing about one-third of the 60 megahertz of spectrum to be auctioned.

"Consumers would be able to use the wireless device of their choice and download whatever software they want," Martin told the panel Tuesday.

The provision was met with support from Democrats on the House subcommittee on the telecommunications and the Internet and resistance from most Republicans on the panel.

However, a broader provision supported by Google received limited support from the two Democrats on the commission and was opposed by Martin.

The hearing was Martin's first opportunity to speak publicly about the rules that will govern the so-called "700 megahertz" auction.

England

Verizon Wireless spin-off opposed

LONDON — Vodafone Group PLC shareholders voted Tuesday against plans by a rebel investor group to overhaul the company by spinning off its majority stake in U.S.-based Verizon Wireless and massively increasing its debt.

Shareholders overwhelmingly supported Vodafone's management, with more than 93 percent of proxy voters against a recommendation by activist investor group Efficient Capital Structures' calls to spin off, or issue a tracking stock for, Vodafone's 45 percent stake in the U.S. mobile operator.

Almost 95 percent of proxy voters, which make up the vast majority of Vodafone's institutional investors, were also against Efficient Capital's call for the issuance of new listed bonds to shareholders.

The votes at Vodafone's annual meeting thwarted Efficient Capital's plan to load the company with an extra $70.2 billion in debt to return more cash to investors.

California

Occidental Petroleum profit up 64 percent

LOS ANGELES — Oil producer Occidental Petroleum Corp. on Tuesday said profit jumped 64 percent in the second quarter on gains from the sale of noncore assets.

Net income rose to $1.41 billion, or $1.68 per share, compared with $860 million, or 99 cents per share, in the year-ago period. Revenue fell slightly to $4.41 billion, from $4.47 billion.

The most recent quarter included a gain of $419 million, or 50 cents per share, on asset sales such as mineral interests, and a $284 million pretax gain from the sale of 18.6 million shares.