Stocks treading water early … US factory output up in August … GM, UAW to resume contract talks
Resending to correctly label Midday BusinessMinute instead of Morning BusinessMinute.
NEW YORK (AP) – Stocks are treading water early today as energy companies give back some of Monday’s gains. Oil prices are down more than 4% after surging over 14% Monday following a weekend attack on oil facilities in Saudi Arabia. Bank stocks are dropping for a second straight day. Household product makers are among the early gainers. At 10:22 a.m. Eastern Time, the S&P 500 was down 1 point, to 2,997. The Dow was down 52 points, to 27,025. And the Nasdaq was down 11 points, to 8,144. The yield on the 10-year Treasury held steady at 1.84% after dropping Monday.
WASHINGTON (AP) – U.S. factory output increased in August at a solid clip, reversing a sharp drop in July, as production of metals, machinery and chemicals all rose. The Federal Reserve says manufacturing production climbed 0.5% last month, after a 0.4% drop in July. Manufacturers have been hit this year by the U.S.-China trade war, which has raised their costs and curtailed their exports. Manufacturing output fell in the first two quarters of this year, the first time that’s happened since 2016. In the past 12 months, factory output has fallen 0.4%.
DETROIT (AP) – Talks between General Motors and the United Auto Workers are set to resume today after a pause in talks overnight. UAW spokesman Brian Rothenberg says, “They are talking, they’ve made progress, we’ll see how long it takes.” A walkout early Monday by upward of 49,000 United Auto Workers members has brought to a standstill more than 50 factories and parts warehouses in the union’s first strike against the No. 1 U.S. automaker in over a decade.
NEW YORK (AP) – The drug company that makes OxyContin is expected to appear in a federal bankruptcy court in White Plains, New York, today. Purdue Pharma filed for bankruptcy protection late Sunday, in the first step to reimbursing state and local governments for the cleanup of damage done by opioids and powerful prescription painkillers. These drugs have been blamed for more than 400,000 deaths in the U.S. in the past two decades.
NEW YORK (AP) – WeWork is pushing back its public debut with investor confidence in the office share company once valued at around $47 billion appearing to grow shaky. Wall Street had expected WeWork to begin a road show to market its shares as early as next week. The company said recently that those shares would be listed on the Nasdaq. In a blistering hot year for IPO, the New York company appears to be having difficulty generating investor enthusiasm. WeWork lost $1.61 billion last year while bringing in $1.82 billion in revenue.