PNC names chairman
PNC Financial Services Group Inc., the second-biggest U.S. regional bank that has Akron operations, elected William S. Demchak chairman to replace James E. Rohr, who previously announced his retirement.
The election by the bank’s board leaves Demchak, 51, as chairman, president and chief executive officer. Demchak joined in 2002 as chief financial officer and was named CEO a year ago, succeeding Rohr, 65. The board’s vote followed PNC’s annual shareholders meeting.
Demchak has cut expenses including jobs and branches to boost profit. First-quarter net income climbed 6.5 percent to $1.06 billion as costs declined and the Pittsburgh company set aside fewer provisions for soured loans.
Amazon expands groceries
Amazon is taking aim at grocery stores and discounters like Walmart with a grocery service that lets its Prime loyalty club members fill up to a 45-pound box with groceries and get it shipped for a flat rate of $5.99.
The mega online retailer says the service, called Prime Pantry, will offer Prime users an expanded selection of items that they usually pick up in grocery stores.
Interest rates rise on loans
Mortgage buyer Freddie Mac said the average interest rate for the 30-year loan rose to 4.33 percent from 4.27 percent last week. The average for the 15-year mortgage increased to 3.39 percent from 3.33 percent.
UPS reports lower profits
UPS Inc. reported net income of $911 million, or 98 cents per share, well short of the $1.08 that Wall Street was expecting and less than the $1.04 billion, or $1.08 per share, it earned a year earlier.
UPS said winter storms reduced operating profit by $200 million as costs rose. Revenue increased by 2.6 percent to $13.78 billion, but that was still shy of the $13.91 billion that analysts had forecast, according to a FactSet survey.
Verizon net income rises
Verizon Communications Inc. said Thursday that its first-quarter net income rose 23 percent to $5.99 billion, or $1.15 per share, from $4.86 billion, or 68 cents per share, in the January-March quarter of 2013.
Excluding one-time items, profit came to 84 cents per share in the most recent quarter. Analysts’ average estimate was 86 cents per share, according to FactSet.
Revenue rose 5 percent to $30.82 billion from $29.42 billion. Wall Street projected $30.66 billion.
Dow Jones index unchanged
The Standard & Poor’s 500 index rose 3.22 points, or 0.2 percent, to 1,878.61 and the Nasdaq composite rose 21.37 points, or 0.5 percent, to 4,148.34. The Dow Jones industrial average closed at 16,501.65, unchanged on the day.
Apple was among the biggest gainers in the S&P 500 and helped push the Nasdaq composite up more than the rest of the broader market.
Apple rose $43.02, or 8 percent, to $567.77 after the California company reported a profit of $11.62 a share, beating forecasts. Apple also announced it would increase its share buyback program from $60 billion to $90 billion, raise its quarterly dividend, and split its stock 7-for-1.
Compiled from staff and wire reports