Stocks sharply lower…Ford extends warranties…We Work to go public
NEW YORK (AP) – Stocks are sharply lower in morning trading on Wall Street following big losses in Europe after Germany’s economy shrank in the second quarter and as the U.S. bond market flashed an ominous warning about a possible recession. The Dow has been down more than 400 points. U.S. government bond prices continued to soar as investors sought safety, briefly pushing a key yield below a threshold that has correctly predicted recessions in the past.
DETROIT (AP) – Ford is extending the warranties on about 560,000 small cars to cover a litany of problems with a troubled six-speed automatic transmission. The company has faced a string of lawsuits and complaints about the transmissions which can lurch into gear or feel like they are slipping. The move covers 2014 through 2016 model year Focuses built before Nov. 5, 2015, as well as 2014 and 2015 Fiestas built before Oct. 15, 2014.
UNDATED (AP) – Office space-sharing company WeWork is getting ready to go public. WeWork, which recently renamed itself The We Co., said in a regulatory filing today that it now has 527,000 memberships across 29 countries. More than 50% of its members are outside the U.S., as of June. WeWork plans to list under the “WE” ticker symbol. It did not disclose what platform it plans to trade shares on.
CINCINNATI (AP) – Macy’s is lowering its annual earnings guidance after the department store struggled through the second quarter and was forced to mark down prices. The department store said today that a combination of factors including a fashion miss, slow sell-through of warm weather fashions and the accelerated decline in tourism caused rising inventory levels.
LONDON (AP) – Officials at London’s Heathrow Airport say a planned strike has been suspended after the union representing security guards, firefighters and other workers gave its members time to consider the company’s offer. Unite union members at Europe’s busiest airport planned to strike Aug. 23-24 in an ongoing pay dispute. The airport said today the new offer gives a total pay rise of 7.8% over two years.