Stocks higher…Labor secretary stepping down…Producer prices rise slightly
NEW YORK (AP) – Stocks are opening higher again on Wall Street, led by more gains in technology companies. Intel and other chipmakers rose. Health care stocks continued to fall a day after the White House scrapped a plan to overhaul a system of rebates that drugmakers pay to insurers and distributors. Bond prices fell, sending yields higher.
WASHINGTON (AP) – President Donald Trump says Labor Secretary Alexander Acosta is stepping down following criticism of his handling of a plea deal with a wealthy financier Jeffrey Epstein, who is accused of sexually abusing dozens of underage girls. The president announced the news this morning with Acosta by his side as Trump left the White House for a trip to the Midwest. Acosta was the U.S. attorney in Miami when he oversaw a 2008 non-prosecution agreement with Epstein. Epstein avoided federal charges and served 13 months in jail.
WASHINGTON (AP) – U.S. producer prices rose modestly in June, another sign that inflationary pressures remain subdued. The Labor Department says that its producer price index, which measures inflation before it reaches consumers, rose 0.1% last month, the same as May’s increase.
DETROIT (AP) – A person briefed on the matter says Volkswagen will invest $2.6 billion in a Pittsburgh-based autonomous vehicle company that’s mostly owned by Ford. The investment is part of a broader partnership on electric and self-driving vehicles that Ford and the German automaker will announce this morning in New York. The two auto makers reportedly will become equal owners of Argo AI, which is developing autonomous vehicle systems.
BERLIN (AP) – German automaker Daimler expects pretax profits this year to be significantly lower than 2018, after setting aside more money to tackle the fallout from its diesel emissions problems and an airbag recall. Today’s announcement drove down Daimler shares, which were 1.1% lower on the Frankfurt exchange.