Stocks Tumble on Fed Concern

U.S. stocks ended lower on Tuesday, as investors speculated the Federal Reserve may move to trim
its stimulus earlier than some had anticipated. the Dow Jones industrial average fell 94.15
points, or 0.59 percent, to end at 15,914.62. The Standard & Poor’s 500 dropped 5.75 points, or
0.32 percent, to finish at 1,795.15. The Nasdaq Composite declined 8.06 points, or 0.20 percent,
to close at 4,037.20.

The holiday shopping season got off to a sluggish start with retail sales falling despite longer
store hours and Black Friday deals, according to an index of chain store sales. Sales dropped 2.8%
the week ending Nov. 30, compared to the previous week, according to the International Council of
Shopping Centers and Goldman Sachs Chain Store Sales Index.

J.C. Penney Co. (JCP) said on Tuesday it was “pleased” with its performance over the Thanksgiving
holiday weekend. The struggling retailer reported that its comparable-store sales rose 10.1% in
November over the last year.

A federal bankruptcy judge on Tuesday ruled that Detroit could move ahead with the largest
municipal bankruptcy in U.S. history, providing the city with protection from its creditors and
allowing Detroit to begin preparing a plan for restructuring an estimated $18 billion in debts.

Krispy Kreme Doughnuts Inc.’s (KKD) fiscal third-quarter profit grew 34% as the doughnut chain
reported higher same-store sales and growth at franchise locations in the U.S. For the quarter
ended Nov. 3, Krispy Kreme reported a profit of $6.8 million, or nine cents a share, up from $5
million, or seven cents a share, a year earlier.