Interest rates worry Wall Street investors

Investors shaken by a turnaround in interest rates sent stocks lower Tuesday, propelling the Dow Jones industrials down nearly 150 points in their worst day in 2 1/2 months.

Downbeat outlooks from Gillette and Costco added to the market’s gloom, but analysts said much of the selling was due to a growing realization that interest rates are again climbing.

“Portfolio managers have decided to back away. They have lost their nerve,” said Hugh Johnson, chief investment officer at First Albany. “They are asking: ‘Will the rise in interest rates impact consumer spending and business spending?’ It may very well.”

The Dow closed down 149.72, or 1.6 percent, at 9,036.32, its biggest one-day point loss since May 19, when it shed 185.58.

The broader market also had steep losses. The Nasdaq composite index dropped 40.56, or 2.4 percent, to 1,673.50. The Standard & Poor’s 500 index fell 17.36, or 1.8 percent, to 965.46.

Aviation

US Airways adds flight between KCI, Washington

US Airways will resume flights between Kansas City and Ronald Reagan Washington National Airport beginning in October, the airline announced Tuesday.

US Airways currently serves Kansas City four times daily from Charlotte, N.C., and three times daily from both Philadelphia and Pittsburgh. US Airways Express carrier Air Midwest serves six destinations in Kansas, Arkansas and Nebraska from Kansas City.

Beginning Oct. 27, the airline will offer two daily nonstop flights between National and KCI, an important business route for customers in the two communities, said Daniel McDonald, US Airways vice president of planning and scheduling.

US Airways emerged from Chapter 11 bankruptcy in March.

Retail

Nebraska Furniture Mart opens Kansas City store

Nebraska Furniture Mart officials Tuesday opened their 450,000-square-foot store near the Kansas Speedway in western Wyandotte County.

The store, which includes a 262,000-square-foot distribution center, features more than 20 different departments that include furniture, electronics, computers and appliances. The store and distribution center employ about 800 workers.

The Omaha, Neb.-based company is owned by billionaire Warren Buffett. Buffett will be at the store Aug. 15 for a ribbon-cutting ceremony and a fund-raiser to benefit breast cancer research at the Kansas University Medical Center.