Stocks flat…Boeing estimates 737 Max costs of $1 billion…Ford to invest $500M in electric vehicle startup
NEW YORK (AP) – Stocks are about flat in subdued morning trading on Wall Street, following a record-setting day. Traders are digesting a steady flow of corporate earnings and a potential break in the trade war between the U.S. and China. Real estate companies and utilities, both typically considered less-risky investments, are gaining, while health care companies and banks lag.
CHICAGO (AP) – Boeing estimates that it will spend $1 billion to fix the 737 Max. The estimate was disclosed today in a presentation for investors as Boeing released first-quarter financial results, which missed Wall Street expectations. Boeing has pulled its forecast of 2019 earnings because of uncertainty surrounding the jetliner, which remains grounded after two crashes that killed 346 people. The company also said it is suspending stock buybacks.
DETROIT (AP) – Ford is sinking a half-billion dollars into electric vehicle startup Rivian in a deal that has the companies working together on a new generation of Ford vehicles based on Rivian underpinnings. Ford will become a minority partner in Rivian, which is based outside of Detroit and recently rolled out a new electric pickup truck and an SUV that will go on sale late next year. Rivian will remain an independent company.
BEIJING (AP) – China’s foreign ministry says the country has been unfairly accused of stealing technology after a former General Electric Co. engineer and his Chinese business partner were charged with industrial spying. The foreign ministry says the case appears to be a “common commercial case” that should not be “over-interpreted and politicized.”
UNDATED (AP) – A nationally renowned drug rehab program in Texas and Louisiana has sent patients struggling with addiction to work for free for some of the biggest companies in America – under a business model that might violate federal labor laws. The Cenikor Foundation has dispatched tens of thousands of patients to work without pay at more than 300 for-profit companies over the years, according to The Center for Investigative Reporting. The program is built on the idea that work helps people recover from addiction. Participants surrender their pay to cover the costs of the program.