Stocks mixed…UnitedHealth ups profit forecast…Southwest cancellations to rise due to grounded Boeing jet
NEW YORK (AP) – Stock indexes are mixed in morning trading on Wall Street. Netflix plunged after the streaming video service reported a slump in new subscribers, dragging down communications companies. IBM climbed after reporting solid financial results and helped lead technology stocks higher. Railroad operator Union Pacific also rose after its earnings came in well ahead of what analysts were expecting.
MINNEAPOLIS (AP) – UnitedHealth is raising its profit expectations for the year after earnings rose almost 13% in the second quarter. The largest U.S. health insurer reported a profit of $3.29 billion, or $3.42 per share. When adjusted for one-time events, per-share profit was $3.60, which is 14 cents better than expected, according to a survey by Zacks Investment Research. Revenue was $60.6 billion, about in line with estimates.
DALLAS (AP) – Southwest Airlines is again pushing back the date it expects to be able to fly the grounded Boeing 737 Max jet, meaning more flight cancellations. Southwest says it is taking the plane out of its schedule through Nov. 2, a month longer than before. Without the plane, Southwest says it will drop about 180 flights a day from its schedule, up from 150. The plane was grounded after crashes in Indonesia and Ethiopia killed 346 people. It’s not clear when it will be cleared to fly after Boeing makes fixes to flight-control software.
WASHINGTON (AP) – Democratic presidential candidate Elizabeth Warren is proposing new regulations on the private equity industry. The senator from Massachusetts is pitching constraints designed to end what she decries as “legalized looting” by investment firms that take over troubled companies. Warren’s plan would hold private equity firms liable for debts and pension promises made by the companies they buy up and would restrict the firms’ ability to pay dividends as well as high fees that shift money out of acquired companies.
NEW YORK (AP) – The first two new Toys R Us stores will open in November as part of a small comeback of the defunct iconic toy chain in the U.S. That’s according to Richard Barry, a former Toys R Us executive who is now CEO of the new company called Tru Kids Brands. Plans are to open a store in the Galleria mall in Houston, Texas, and in Westfield Garden State Plaza in Paramus, New Jersey. The first two locations will be about 6,500 square feet – a fraction of the brand’s big box stores, which were about 30,000 square feet.