May 15 - Summary of business headlines: General Motors to stop paid ads on Facebook; Stocks take another step back; New investigations into JP Morgan Chase trading loss; Retail sales barely rise; JC Penney stops dividend. Bobbi Rebell reports.
General Motors is unliking its ads on Facebook. The company says it will drop the use of its paid ads but will still have Facebook pages marketing its vehicles. GM pays no fee to Facebook for its pages. The move comes just days ahead of Facebook's scheduled initial public offering. It was day three in the red for U.S. stocks. The S&P 500 hit a fresh 3-month low, as failure to form a new government in Greece put the country's bailout package and debt repayments further at risk. JP Morgan Chase is under the microscope from a number of government agencies. The FBI, SEC and Federal Reserve are all investigating the trading losses at the bank. Protesters demonstrated outside the annual shareholder meeting, but inside, a show of support for Chairman and CEO Jamie Dimon- shareholders voted against a proposal to split his position into two separate jobs. Sales at US retailers barely budged last month. A boost from the unseasonably warm winter faded, and consumer spending lost some momentum. Alison Jatlow Levy is a retail strategist at consulting firm Kurt Salmon: SOUNDBITE: ALISON JATLOW LEVY, RETAIL STRATEGIST, KURT SALMON (ENGLISH) SAYING: " I think that the economy is still fragile. So while the consumer is coming back slowly, I think it is a changed consumer, a little more conservative these days and while they still will spend its not going to be continuos growth that we've seen in the past. " After the closing bell, JC Penney shares plummeted after the company reported same store sales sank 19 percent last quarter- and said it would no longer pay a quarterly dividend. The company will use the money to fund its multi-year overhaul. Taking a look at the closing numbers: the major US indexes all closed lower in large part because of the Greek stalemate. The troubles in Greece weighed down Europe as well: shares fell to their lowest closing level since the start of 2012. Bobbi Rebell, Reuters.