Stocks rise…Home sales slump…US probes 4 automakers in new Takata air bag recall
NEW YORK (AP) – Stocks are moving higher in morning trading on Wall Street following encouraging profit reports from several big companies. Trading around the world was mostly listless, as markets took a pause after a run higher in recent weeks. Stocks, bonds, gold, crude oil and a gauge measuring fear among traders on Wall Street all made only slight moves, if any, in the first day of trading after President Donald Trump’s impeachment by the House of Representatives.
WASHINGTON (AP) – Home-buying slumped in November, with some Americans priced out of the market by rising prices and a shortage of sales listings. The National Association of Realtors says sales of existing homes fell 1.7% last month to a seasonally adjusted annual rate of 5.35 million. Would-be buyers face supply constraints: The number of properties for sale has dwindled 5.7% from a year ago to 1.64 million units. Affordability has also been a persistent challenge. The median home sales price has climbed 5.4% from a year ago to $257,400, outpacing wage growth.
DETROIT (AP) – The U.S. government’s highway safety agency has launched an investigation into four automakers that have a potentially deadly type of Takata air bag inflator in their vehicles but have yet to recall them. The National Highway Traffic Safety Administration says in documents posted today that it is investigating Audi, Toyota, Honda and Mitsubishi in connection with a Takata recall involving 1.4 million inflators. The inflators made by the now-bankrupt Takata have a distinct and separate problem that can cause them to blow apart a metal canister and spew shrapnel into people’s faces and bodies. The problem killed a driver in Australia who was in an older 3-Series BMW, which has already recalled more than 116,000 vehicles.
DETROIT (AP) – General Motors is recalling more than 814,000 pickup trucks and cars in the U.S. to fix problems with electronic brake controls and battery cables. The first recall covers nearly 464,000 Cadillac CT6 sedans and Chevrolet Silverado 1500 and GMC Sierra 1500 pickup trucks from 2019. The company says a software error can disable the electronic stability control and antilock brake systems. The second recall covers over 350,000 2019 and 2020 Silverado and Sierra 1500 pickups. A cable connecting the battery and alternator may have too much glue on it. That can interrupt the electrical connection and possibly cause the trucks to stall or even catch fire.
UNDATED (AP) – Rite Aid shares could be in for their biggest one-day jump in more than two years after the struggling drugstore chain posted a rare quarterly profit. The company said today that it booked more than $51 million in net income in its fiscal third quarter, easily surpassing Wall Street expectations. That came mainly from a big gain on some debt retirement, and it compared to a $4.5 million loss in last year’s quarter. Rite Aid has dealt with steep stock price declines and a big management shakeup this year. The company runs more than 2,400 drugstores in 18 states, a much smaller total than rivals CVS and Walgreens.