S&P 500 posts biggest two-day drop since 2011 on Fed concerns

Household Goods

Producers of household goods headed for the biggest two-day decline since 2008 as Kraft Foods Group Inc. and Avon Products Inc. tumbled more than 6.1%. The industry fell 3%, paring gains for the year to 12%.

The S&P Supercomposite Homebuilding Index plunged 7.9%, the most in a year. PulteGroup fell the most in the S&P 500, losing 10% to $18.60. D.R. Horton dropped 9.1%, the most in a year, to $21.31.

Walt Disney Co. fell 3.7% to $61.98 for the largest decline in the Dow, as all members of the 30-stock gauge slid. Intel Corp. dropped 3.5% to $24.12.

Ebix, GameStop

Ebix Inc. sank 45% to $10.76 as Goldman Sachs Group Inc. yesterday terminated an agreement to buy Ebix for $20 a share after federal prosecutors began an investigation of the software company. The U.S. Attorney in Atlanta wrote in a letter that it was probing allegations of intentional misconduct, Ebix said in a statement.

GameStop Corp. added 6.6% to $41.07, its highest level since September 2008. Microsoft Corp. removed restrictions on reselling, trading and lending used games for its Xbox One home entertainment unit. Pre-owned games, which GameStop customers trade in for new versions, were 31% of the largest video-game specialty retailer’s first-quarter revenue.

Sprint Nextel Corp. added 1.4% to $7.10. The third- largest U.S. wireless carrier raised its bid to acquire the approximately 50% of Clearwire Corp. it doesn’t already own. The proposal of $5 a share topped an offer from Dish Network Corp. by 14%.


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