Reuters Business Summary

Wall Street tumbles, led by financials

NEW YORK (Reuters) - Stocks tumbled more than 2 percent on Thursday after a report showing yet another drop in U.S. home sales prompted investors to take profits in financial shares, which had rallied over the past week. The Dow fell the most in a month, as the rising price of oil compounded worries about the economy. The jump in crude spurred unease that the recent sharp declines may have run their course. Shares of companies particularly vulnerable to higher fuel costs, such as airlines and retailers, sank.

Microsoft CEO backs Web spending, "done" with Yahoo

REDMOND, Washington (Reuters) - Chief Executive Steve Ballmer on Thursday defended Microsoft Corp's (MSFT.O: 行情) need to make heavy investments in its Internet businesses but said the company was "done," for now, with pursuing Yahoo Inc (YHOO.O: 行情). "There's nothing under discussion between the two of us," Ballmer told investors of how six months of various talks had reached an impasse earlier in July.

Wachovia CFO Wurtz to leave

NEW YORK (Reuters) - Wachovia Corp WB.N, which posted a record $8.86 billion second-quarter loss Tuesday, said Chief Financial Officer Thomas Wurtz will resign from the fourth-largest U.S. bank after a successor is named. The Charlotte, North Carolina-based lender said Thursday it will begin an immediate search for a replacement.

Home sales at 10-year low, jobless claims jump

WASHINGTON (Reuters) - Jobless claims jumped and the pace of existing home sales tumbled to a 10-year low as slowing growth hit hiring and a glut of unsold houses weighed on real estate, data released on Thursday showed. The number of workers filing new claims for jobless benefits jumped 34,000 last week, the Labor Department said, in part reflecting seasonal volatility typical at this time of year, but also indicating that jobs were hard to find.

Morgan Stanley aggressively recruiting brokers

NEW YORK (Reuters) - Morgan Stanley (MS.N: 行情) said on Thursday it is poaching brokers from Merrill Lynch MER.N and other rivals, accelerating the expansion of its global wealth management business during a period of turbulence on Wall Street. Morgan Stanley spokesman Jim Wiggins declined to comment on a CNBC report that said the firm was targeting Merrill, which is struggling with growing credit losses, or any other single firm.

Clear Channel shareholders ok $17.9 billion buyout

SAN ANTONIO, Texas (Reuters) - Radio operator Clear Channel Communications Inc (CCU.N: 行情) shareholders on Thursday approved its $17.9 billion takeover by private equity funds Thomas H. Lee Partners THL.UL and Bain Capital. The vote ends a 20-month effort to take the radio and billboard operator private.

U.S. banks primary borrowings from Fed biggest ever