Business Briefs

AIG losses, jobs data push stocks down

NEW YORK — Wall Street tumbled Thursday as worries about losses in the financial sector, higher unemployment and lackluster sales at retailers touched off fresh concerns about the economy.

Heading the list of worries: insurer American International Group's second-quarter loss of more than $5 billion and the Labor Department's report that the number of newly laid-off people seeking benefits last week jumped to its highest level in more than six years.

The Dow Jones industrial average fell 224.64, or 1.93 percent, to 11,431.43, erasing most of the 370-point gain the index logged the two previous sessions.

Broader indicators also slid. The S&P 500 index lost 23.12, or 1.79 percent, to 1,266.07; the Nasdaq index fell 22.64, or 0.95 percent, to 2,355.73.

Blockbuster says loss for quarter grew

DALLAS — Blockbuster Inc. said its second-quarter loss widened even as sales rose 3.3 percent, as the company continued to restructure.

The chain said Thursday its net loss expanded to $41.9 million for the three months ended July 6 from $31.4 million in the year-earlier period. Revenue rose to $1.3 billion.

BMW sales for July edge up slightly

FRANKFURT, Germany — BMW AG said Thursday that global sales of its automobiles rose 2.2 percent in July, with its BMW, Mini and Rolls-Royce brands posting increases. Buyers also sought out the company's motorcycles in droves.

The company, which has a large manufacturing plant in Upstate South Carolina, said it sold 125,812 cars last month, compared with 123,089 in July of last year. Motorcycle sales rose to 11,000, a 23 percent increase.

Sales at Wal-Mart up 3 percent last month

BENTONVILLE, Ark. — Wal-Mart Stores said Thursday its July sales at stores open a year or more rose 3 percent, slightly less than expectations, as tax-rebate checks dried up and consumers spent closer to their paycheck cycle.

The retailer said same-store sales rose 3 percent at Wal-Mart and 3.5 percent at Sam's Club. The company expects August sales to rise 1 percent to 2 percent, excluding fuel.

Profit at Toyota skids to $3.2 billion

TOKYO — Toyota's fiscal first-quarter profit plunged 28 percent from a year earlier as slipping North American sales, a strong yen and rising material costs dented the earnings of the Japanese automaker.

Toyota said Thursday that its April-June profit fell to the equivalent of $3.23 billion from the same period last year. Sales slipped 4.7 percent to $56.8 billion.

Citigroup to return billions, pay fines

WASHINGTON — Citigroup will buy back more than $7 billion in auction-rate securities and pay $100 million in fines under settlements with regulators, who said the bank marketed the investments as safe despite liquidity risks.

Citigroup will buy back the securities from 40,000 investors nationwide under accords announced Thursday.

The buybacks from nearly 40,000 individual investors, small businesses and charities are not expected to cause significant losses for Citigroup.