Briefcase

Markets hit lows for year over Greece’s crisis

NEW YORK – The latest setback in Greece’s financial crisis sent major stock market indexes to lows for the year Monday and put the Standard and Poor’s 500 index on the verge of a bear market. The euro fell to a 9-month low against the dollar, and the yield on the 10-year Treasury note sank as investors piled money into lower-risk investments.

The slump came on the first day of trading for the fourth quarter and followed the weakest quarter the market has had since the financial crisis. Stocks opened lower, turned briefly higher in late morning trading, then slid all afternoon.

European markets slumped after Greece said it won’t be able to reduce its budget deficits as much as it had agreed to as part of a deal to receive more emergency loans. The S&P 500 lost 32.19, or 2.9 percent, to 1,099.23. The Dow Jones industrial average fell 258.08 points, or 2.4 percent, to 10,655.30.

The Nasdaq composite slid 79.57, or 3.3 percent, to 2,335.83. The Russell 2000 index of small companies plunged 5.4 percent to 609.49.

All four indexes hit their lowest level for the year.

Associated Press

American Airlines stock falls on bankruptcy fears

NEW YORK – American Airlines stock plunged to an eight-year low on fears of a weaker economy – which hurt other airline shares – and speculation the carrier would seek bankruptcy protection.

A combination of factors drove down shares Monday. Wall Street analysts suggested that American turn to the bankruptcy court to lower costs. Investors were also spooked by a report that showed a slowdown in air travel and cargo. Shareholders, in addition, weighed an announcement that more than 10 times the normal number of pilots are retiring from American. That’s a signal to some that pilots are fearful about the carrier’s health.

Shares of AMR Corp., American’s parent, tumbled 33 percent, closing at $1.98. Shares have not closed below $2 since March 2003. Trading of the Fort Worth, Texas-company was halted seven times Monday because of extreme volatility. Stocks for the entire U.S. airline industry fell 9.8 percent.

Associated Press

Rhapsody buys Napster subscribers, other assets

SEATTLE – Electronics retailer Best Buy Inc. is tuning out of Napster, a digital music service that has struggled to evolve from its renegade origins as a free file-sharing network that riled the recording industry.

Napster’s subscribers and other assets will be sold to another digital music service, Rhapsody, as part of a deal announced Monday.

Best Buy will get an undisclosed stake in Rhapsody after the swap is completed.

The deal ends Best Buy’s efforts to groom Napster into a brand that would have broad appeal to shoppers buying mobile phones and computers at its nearly 1,400 stores. Best Buy, which is based in Richfield, Minn., bought Napster for $122 million in cash in October 2008.

Since then, other music services, such as Internet radio station Pandora Media Inc. and Spotify, have emerged as more popular channels.

Associated Press