Fed’s stimulus skepticism puts damper on markets

NEW YORK — U.S. stock markets fell Tuesday, with the Dow industrials down for the first time in four sessions, after minutes from the Federal Reserve signaled less willingness for monetary stimulus.

The market scaled back from after its initial reaction, however. The Dow Jones industrial average fell 133 points, but by the close was down 64.94 points, or 0.5 percent, to 13,199.50.

Wall Street’s negative initial response was not surprising, said Chip Cobb, portfolio manager at Bryn Mawr Trust. “The market always wants more stimulus, the ability to give it more of a shot in the arm, as if it would even work at this point,” he said.

The S&P 500 index declined 5.66 points, or 0.4 percent, to 1,413.38.

The slowing rate of China’s economic growth has been reflected in share prices for energy and natural-resource companies over the past month and a half, said Nick Raich, director of research with Key Private Bank in Cleveland. “Sectors tied to global growth haven’t really participated in the rally,” he said.

The Nasdaq composite index retreated 6.13 points, or 0.2 percent, to 3,113.57.

Groupon stock slides amid lawsuit, regulator scrutiny

NEW YORK — Groupon’s stock has closed at its lowest level ever amid growing scrutiny over its business just five months after it went public.

Shares of Groupon Inc. closed Tuesday at $15.02. That’s the lowest since the company went public in November, when its initial public offering of stock was priced at $20 a share.

The Chicago-based company is facing a shareholder lawsuit and a possible review by federal regulators. It revised its fourth-quarter earnings on Friday, lowering its reported revenue by 3 percent and widening its losses. Groupon said it hadn’t set enough money aside for refunds.

The Wall Street Journal reported earlier that the Securities and Exchange Commission is examining Groupon’s revision. That’s a common practice for any company that issues a restatement, but it may have raised a red flag for Groupon investors who were already looking at the company closely because of previous blunders.

Murdoch’s son quits to shift scandal scrutiny off BSkyB

LONDON – Once his father’s heir apparent, James Murdoch stepped down Tuesday as chairman of British Sky Broadcasting, surrendering one of the biggest jobs in the Murdoch media empire in a bid to distance the broadcaster from a deepening phone-hacking scandal.

James Murdoch’s credibility and competence have come under severe questioning because of the phone hacking crisis and alleged bribery by British newspapers while he was in charge, and he faces further questioning in the scandal.

“I am aware that my role as chairman could become a lightning rod for BSkyB and I believe that my resignation will help to ensure that there is no false conflation with events at a separate organization,” said Murdoch, 39.

Nicholas Ferguson, formerly deputy chairman, moved up to replace the younger Murdoch as chairman at BSkyB.

James Murdoch retains his roles as deputy chief operating officer of News Corp. and chairman and CEO of the company’s international division.