Automakers may face the biggest recall in auto history after U.S. regulators said Takata's defective air bags are in nearly 34 million vehicles. On Wall Street, the Dow closed at a new record high. Bobbi Rebell reports.
A major blow to automakers. U.S. regulators say, Japanese air bag maker Takata's defective air bags are in nearly 34 milllion vehicles. They say, that could lead to the biggest recall in auto history, involving eleven auto makers. On Wall Street, the Dow hit a new record high, but the other major U.S. indexes lost ground. Casting a damper on investor sentiment, strong housing data suggesting that the Federal Reserve could move interest rates up sooner. Housing starts jumped to their highest level in nearly 7-1/2 years last month. Permits for future home construction also shot up. The recovery of the housing market helped lift Home Depot's quarterly sales and profit past analysts' estimates, and the home improvement retailer hiked its earnings outlook for the year. Economist John Dunham: SOUNDBITE: JOHN DUNHAM, ECONOMIST AND MANAGING DIRECTOR, JOHN DUNHAM & ASSOCIATES (ENGLISH) SAYING: "Home improvement sector has been doing really well, actually, because people haven't been buying new houses. So, they've been refurbishing their own houses, doing new landscaping, and that's really benefitted Home Depot, Lowe's, and the other competitors in that market." Trading down: Dow stock Wal-Mart. The world's largest retailer missed Wall Street's profit and sales targets. Its losing counterpart on the S&P 500: Urban Outfitters. Shares sank one day after the women's wear retailer's Anthropologie brand reported sales growth had slowed to its slowest pace in eleven quarters. But shares of TJX bucked the retail trend, topping the S&P's winners list. The operator of discount retailersT.J.Maxx and Marshalls upped its profit and sales forecast. And the stock of the maker of "Grand Theft Auto V" shifted into high gear. Take-Two Interactive Software's profit sped past analysts' estimates. In Europe, shares returned to multi-year highs after positive comments from a European Central Bank policy maker.