Stocks in wait-and-see mode…GM wants to avoid recall…American ups buy on Airbus
NEW YORK (AP) – Investors are in wait-and-see mode, hours ahead of a widely anticipated Federal Reserve statement on interest rates. Stocks are mixed in midday trading with the S&P 500 barely changed and the Nasdaq showing a slight decline. Expectations that the Fed will have to cut rates at some point have pushed stocks higher in June. The S&P is up 6% for the month and just 1% off its all-time high. The Fed issues its decision at 2 p.m. Eastern time.
DETROIT (AP) – General Motors is trying to avoid recalling potentially deadly Takata air bag inflators in thousands of full-size pickup trucks and SUVs for the fourth straight year, leaving owners to wonder if vehicles are safe to drive. The automaker petitioned the National Highway Traffic Safety Administration to exempt it from recalls required under a 2015 agreement between Takata and the government. Takata inflators can explode with too much force, blowing apart a metal canister and spewing shrapnel. GM’s petition says the inflators are unique to GM and are safe.
PARIS (AP) – American Airlines is buying 50 of Airbus’ newest long-range plane in a big boost for the just-launched A321XLR. Airbus and the world’s largest airline announced the deal today at the Paris Air Show, upgrading a previous order for to the plane. Launched Monday, the A321XLR program is a long-range version of its popular single-aisle A320 range. Airbus has already signed several customers for the yet-to-be-built plane.
WASHINGTON (AP) – The head of the pilots’ union at Southwest Airlines says that his group will seek compensation from Boeing for lost flying assignments and the costs of complying with a Justice Department subpoena for its records as part of the government’s criminal investigation into Boeing. The statement comes as a House aviation subcommittee holds its third hearing into the Boeing 737 Max. The plane has been grounded after two crashes killed a total of 346 people.
DOVER, Del. (AP) – Delaware’s Supreme Court has overturned a judge’s dismissal of a shareholder lawsuit against one the country’s largest ice cream manufacturers over a 2015 listeria outbreak. The outbreak killed three people, leading to significant financial losses for the company. Yesterday, the court ruled that a judge erred because the plaintiff had not demanded that the board of Blue Bell Creameries take action itself before the lawsuit was filed. The court also said the lawsuit adequately alleges that the board at Blue Bell failed to implement any system to monitor food safety performance or compliance.