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Business

  • Penney’s board unchanged despite losses
    Ron Johnson’s job at J.C. Penney Co. ended after his attempt to overhaul the retailer wiped out a quarter of its sales and about half of its market value. The board members who hired him are staying.
  • GM shares crack 2-year high
    Shares of General Motors reached an important milestone on Friday, closing above their initial public offering price of $33 for the first time in more than two years. GM shares reached $33.
  • Area’s jobs outlook better
    State unemployment dipped in April – and metro Fort Wayne did its part.The region had fewer people without work and the jobless rate retreated to 7.6 percent from 8.
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Briefs

Alzheimer’s drug raises fresh hope

An Alzheimer’s treatment from Eli Lilly and Co. failed to slow memory decline in two separate patient studies, but the drug did show some potential to help in mild cases of the mind-robbing condition that is notoriously difficult to treat.

The Indianapolis drugmaker’s announcement could be a step toward a long-awaited breakthrough in the fight against the disease. But researchers not tied to the studies – and Eli Lilly itself – cautioned against overreacting to the initial results.

Lilly said Friday that its treatment, solanezumab, failed to slow the rate of cognitive decline, which involves a person’s ability to remember things, in two late-stage studies of about 1,000 patients each. But when data from the trials were combined, scientists saw a statistically significant slowing of that rate in the bigger population.

Durable goods orders stumble yet again

Signs that U.S. manufacturing is faltering emerged from a report Friday that found orders for long-lasting factory goods, excluding the volatile transportation category, fell in July for the fourth time in five months.

Overall orders for durable goods rose a seasonally adjusted 4.2 percent in July, the Commerce Department said. But excluding aircraft and other transportation goods, orders dropped 0.4 percent.

Durable goods are items meant to last at least three years. Orders for core capital goods, a key measure of business investment plans, fell 3.4 percent. That’s the biggest drop since November and the fourth decline in five months. And June’s figure was revised down, with a drop of 2.7 percent – worse than the initial estimate of a 1.7 percent fall.

US makes $62.4 million on 4 banks’ stock sale

The government says it made $62.4 million on the sale of its stock in four small banks that were bailed out during the 2008 financial crisis.

The Treasury Department announced Friday the results of its latest auction of its preferred stock in small banks. The government sold its shares for $5.1 million less than its original investment in the four banks of $67.5 million. But overall the Treasury says the investment was profitable after counting $12.1 million in dividends it received from the banks, for total income of $74.5 million.

The profits will help offset losses in the broader financial bailout, known as the Troubled Asset Relief Program. The government loaned $417 billion to financial institutions and automakers under TARP. It has recovered $351 billion.

About $245 billion went to 707 banks. The Treasury Department says it’s recovered $266 billion from its TARP bank investments from repaid loans, dividends and interest.

CEO at WellPoint faces calls for ouster

Royal Capital Management’s call for the ouster of WellPoint Chief Executive Officer Angela Braly is spurring discussions among investors and analysts about who might be tapped to replace her.

Royal Capital, with 837,800 shares of WellPoint as of June 30, urged the health insurer’s board to remove Braly in a letter that was made public Thursday. In doing so, the New York-based hedge fund became the third shareholder in a month to publicly question management at the second-biggest U.S. health plan.

The WellPoint board has supported Braly in two public statements.

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