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China's state media on Monday welcomed U.S. toy maker Mattel's apology over its recalls of Chinese-made toys, saying that although overdue it should help restore the country's sullied export reputation.
The world's largest toy maker, Mattel, apologized on Friday for damaging China's reputation after recent massive recalls of its Chinese-made toys, admitting it targeted some goods that were actually up to scratch.
For now, toy makers and retailers are sharing the burden, but that's only expected to last until the holiday season. Next year, American consumers will be facing price increases of up to 10% to pay for the industry's increased vigilance after more than 3 million lead-tainted toys from China were recalled worldwide since June.
Stocks closed lower as investors remained cautious ahead of next week's Federal Reserve meeting on interest rates. "I think the Fed is behind the game and they have to play catch up," said Bill Strazzullo, chief market strategist at Bell Curve Trading.
Mattel Chief Executive Robert Eckert apologized Wednesday for three huge recalls this summer of lead-paint tainted toys made in China and said the company supports strengthening the U.S. government's consumer safety agency.
An agreement unveiled during the second joint U.S.-China summit on consumer product safety came in the wake of the recalls of millions of playthings decorated with paint containing the toxic metal.
Walt Disney will begin its own testing of toys featuring Disney characters for lead paint, a move signaling increased worries over toy safety ahead of the holiday season, the New York Times reported on its Web site Monday.
Stocks finished the week with a huge selloff as a surprise drop in U.S. jobs sparked worries that the economy is headed for a recession.
The U.S. Congress is looking into Mattel's procedures for alerting federal regulators about hazardous toys, The Wall Street Journal reported in its online edition Friday.
Following are Tuesday's biggest winners and losers. Find out why shares of General Motors (GM), Daimler (DAI) and SunMicro (JAVA) popped while Mattel (MAT) and Avis Budget Group (CAR) dropped.
Toymaker Mattel on Tuesday announced a third recall of Chinese-made toys, saying it would take back more than 800,000 units globally that contain "impermissible" levels of lead.
The U.S. Consumer Product Safety Commission is investigating the timeliness of toy company Mattel's disclosures before its most recent recall, the Wall Street Journal reported in its online edition on Tuesday.
China hit back after Mattel's massive toy recall on Monday, saying designers and importers should also take responsibility for product safety, but promised to punish its own manufacturers who flout standards.
Mattel said it was recalling some models of Polly Pocket, Batman, Barbie and other Chinese-made toys from Asian markets as part of a major worldwide exercise to remove the toys from shelves because of lead paint and tiny magnets that could be swallowed.
Stocks closed sharply lower, with the Dow dropping more than 200 points, amid continuing anxiety about the credit markets and a weak earnings outlook from Wal-Mart. "I still feel the market is headed for a lower low," said Byron Wien, chief market strategist at Pequot Capital Management.
Mattel Chairman and Chief Executive Robert Eckert said the toy maker will continue to use Chinese manufacturers in the wake of a second safety recall, citing increased oversight the company has put in place to monitor manufacturers outside the U.S.
Stocks start the week on firmer ground after central bankers once again pumped cash into the markets, injecting confidence and liquidity. Stock markets around the globe gained, and U.S. stock futures are higher.
The boss of a Chinese toy manufacturing company involved in a Mattel recall after its products were found to contain excessive lead levels has hanged himself, Chinese media reported on Monday.
Mattel has named the Chinese factory involved in the company's recall of 1.5 million toys that contained lead paint, The Wall Street Journal reported on its Web site Tuesday evening.
Stocks closed higher as investors were encouraged by strong earnings reports despite lingering subprime concerns. "There wasn't much negative news today from the subprime market and people still want to buy the market," said Todd Leone of Cowen. "We were way oversold and I think you have some people putting money to work."