Business News

US is investigating Delta’s flight cancellations and faltering response to global tech outage

U.S. airline regulators have opened an investigation into Delta Air Lines, which is still struggling to restore operations on Tuesday, more than four full days after a faulty software update caused technological havoc worldwide and disrupted global air travel. Transportation Secretary Pete Buttigieg announced the Delta investigation on the X social media platform Tuesday morning “to ensure the airline is following the law and taking care of its passengers during continued widespread disruptions.” As of Tuesday morning, Delta had an outsized portion of canceled flights. Of the 654 total cancellations of flights within, into or out of the U.S. Delta had 440 of them.

With US vehicle prices averaging near $50K, General Motors sees 2nd-quarter profits rise 15%

DETROIT (AP) — U.S. customers who bought a new General Motors vehicle last quarter paid an average of just under $49,900, a price that helped push the company’s net income 15% above a year ago. And despite analyst predictions of growing U.S. inventories for the industry and bigger discounts reducing prices, GM Chief Financial Officer Paul Jacobson said he doesn’t see his company cutting prices very much. The Detroit automaker on Tuesday said it made $2.92 billion from April through June, with revenue of $47.97 billion that beat analyst expectations. Excluding one-time items, the company made $3.06 per share, 35 cents above Wall Street projections.

Stock market today: Wall Street holds steady as a torrent of earnings reports begins

NEW YORK (AP) — U.S. stocks are holding relatively steady as earnings reporting season ramps up for big companies. The S&P 500 rose 0.2% Tuesday. The Dow Jones Industrial Average added 66 points, and the Nasdaq composite gained 0.3%. Life sciences company Danaher was one of the strongest forces lifting the market after it reported stronger profit and revenue than expected. A similar jump for GE Aerospace helped offset losses for UPS and Comcast. Big Tech companies Alphabet and Tesla will report their results after trading ends for the day. Treasury yields eased after a housing report showed more weakness than expected.

Coca-Cola raises full-year sales guidance after stronger-than-expected second quarter

Coca-Cola is raising is full-year sales guidance after a stronger-than-expected second quarter. The Atlanta beverage giant said it now expects organic sales to grow between 9% and 10% this year, up from 8% to 9% previously. Coke said Monday its revenue rose 3% to $12.4 billion for the April-June period. That was higher than Wall Street anticipated. Adjusted for one-time items, including currency fluctuations, Coke earned 84 cents per share. That also beat Wall Street’s forecast. Coke said its unit case volumes rose 2% globally. Coke’s prices rose 9% globally, partly due to hyperinflation in markets like Argentina and Nigeria.

Bernard Arnault has been dubbed the Olympics’ godfather. Here’s how he built LVMH’s fortune

PARIS (AP) — These may be the most luxurious Olympics ever. A key sponsor is LVMH, the biggest seller of luxury goods in the world. Think Louis Vuitton bags, Christian Dior fashions, and Veuve Clicquot. Its CEO and chair Bernard Arnault became one of the world’s richest people through shrewd marketing of those storied names and now he’s contributing to the Games as a sponsor. His craftsmen are designing the opening ceremony uniforms for the French team and the medals for everyone, underlining his company’s connection to the City of Lights and its heritage of fashion and design.

Google makes abrupt U-turn by dropping plan to remove ad-tracking cookies on Chrome browser

LONDON (AP) — Google is dropping plans to eliminate cookies from its Chrome web browser, making a sudden U-turn on four years of work to phase out the technology that tracks users for ad purposes. The company had been working on retiring so-called third-party cookies, which are snippets of code that log user info, as part of on overhaul to tighten up privacy on Chrome. But its proposal, known as Privacy Sandbox, had shaken up the online advertising industry over fears that any replacement would leave even less room for online ad rivals. In a blog post on Monday, Google said it decided to abandon the plan after taking into account the impact on publishers, advertisers and “everyone involved in online advertising.”

South Korean tech giant Kakao’s founder arrested in stock price manipulation case

SEOUL, South Korea (AP) — South Korean prosecutors have arrested the founder of the country’s tech giant Kakao Corp. on suspicion of stock price rigging during his company’s takeover of a major K-pop agency last year. Kim’s arrest came after the Seoul Southern District Court approved an arrest warrant, citing concerns that he could flee or destroy evidence. A Seoul prosecutors’ office said Tuesday it has up to 20 days to investigate him and determine whether to indict him. Prosecutors say Kim has denied the allegation. Kakao’s stock price fell more than 5% on Tuesday. Kakao is best known for its hugely popular mobile chat app, called Kakao Talk, but it has branched out into banking, online shopping and other services.

UPS boosts volume in US for first time since 2022, but profit and revenue slide

UPS managed to boost its volume in the U.S. for the first time since 2022 during its second quarter, but profit and revenue fell short of Wall Street’s expectations partly due to a hefty charge. Shares dropped 7 before the market open on Tuesday. CEO Carol Tome said in a statement that the second quarter saw the package delivery company return to volume growth in the U.S., the first time in nine quarters.

As hurricane season begins, here’s how small businesses can prepare in advance of a storm

NEW YORK (AP) — The hurricane season roared into the U.S. with Hurricane Beryl hitting Texas in early July. And NOAA is predicting an above-average storm season this year. So how can a small business be ready? There are steps to take to make sure you’re prepared for storms and insured for storm damage. Well before any hurricane is announced, check and double check your insurance policy. Read your policy closely and identify any added protections you might need. Make sure your business data is regularly backed up and can be accessed off site. And have an established emergency communication plan in place.

Warner Bros. Discovery informs NBA it will match Amazon Prime Video’s offer to air games

Turner Sports intends to continue its longtime relationship with the NBA. Warner Bros. Discovery informed the league Monday that it will match the $1.8 billion per year offer by Amazon Prime Video. Turner has had an NBA package since 1984 and games have been on TNT since the network launched in 1988. The NBA’s Board of Governors approved the league’s 11-year media rights deals with Disney, NBC and Amazon Prime Video at its meeting in Las Vegas last Tuesday. WBD received all three contracts on Wednesday, which started the five-day clock on whether it wanted to match. An NBA spokesperson says the league is reviewing the matching offer.