Wall Street market report

  • 6 August 2014
  • From the section Business

(Close): Stocks on Wall Street closed slightly higher on Wednesday, despite concerns over new Russian sanctions and the scrapping of two corporate deals.

Investors' nerves were tested by reports that Russia had gathered thousands of troops on Ukraine's eastern border.

The Dow Jones rose 13.87 points to 16,443.34 while the tech-heavy Nasdaq gained 2.22 points to 4,355.05.

The S&P 500 was essentially flat, rising 0.03 of a point to 1,920.24.

Time Warner shares fell 12.85% after Twenty-First Century Fox announced late on Tuesday that it was dropping its attempt to buy the company. Time Warner had rejected Fox's initial offer in July.

On Wednesday, Time Warner said the popularity of shows such as "Game of Thrones" on its HBO network had helped to lift second quarter revenues by 3% to $6.79bn. Net income from continuing operations increased to $843m from $698m a year earlier.

Shares in Sprint dived nearly 19% after reports that it had abandoned its attempt to buy T-Mobile US because of concerns the deal would not get past regulators. Shares in T-Mobile US fell 8%.

Groupon closed down 13% after it cut its full-year profit forecast on Tuesday. Groupon says it now expects earnings of more than $270m, compared with its previous estimate of more than $300m.

Walgreen fell 14% as the company announced it would be buying the 55% of Alliance Boots that the company does not already own. Investors were disappointed after Walgreen said it would not use the deal to move its headquarters abroad, which would have cut its tax bill.