Stocks climb…Another retailer files Chapter 11…GE sells lighting unit…Mitsubishi issues recall…Trump threatens social media
NEW YORK (AP) – Stocks are rising again in early trading on Wall Street, with travel companies, banks and other stocks that would benefit the most from a reopening economy leading the way. The S&P 500 is climbing toward its seventh gain in the last nine days. Gains were strong in Europe, where authorities proposed a 750 billion euro ($825 billion) recovery fund to help carry the region through the recession caused by the pandemic. Asian stocks were mixed, as tensions between the United States and China weighed on markets.
NEW YORK (AP) – Discount goods retailer Tuesday Morning has filed for Chapter 11 bankruptcy, the fifth major retailer to do so since the pandemic. As part of the bankruptcy reorganization, the Dallas-based chain said it plans to close approximately 230 of its 687 stores over the summer to focus on high-performing locations and will do this with a phased approach. Tuesday Morning joins J.C. Penney, luxury department store chain Neiman Marcus, J.Crew and Stage Stores in filing for Chapter 11 since the virus was declared a pandemic in mid-March. Pier 1 Imports, which filed for Chapter 11 in February, is now liquidating its business.
BOSTON (AP) – GE is selling its lighting unit to smart home company Savant Systems for an undisclosed amount. GE Chairman and CEO H. Lawrence Culp, Jr. says in a statement that the transaction is part of GE’s ongoing process to be a more focused industrial company. The deal includes a long-term licensing agreement for use of the GE brand. The transaction is expected to close in the middle of the year.
DETROIT (AP) – Mitsubishi is recalling nearly 223,000 vehicles in Canada and 22 cold-weather U.S. states because suspension parts can rust, detach and cause drivers to lose control. In the U.S. the recall covers the 2008-2013 Outlander, the 2011 to 2016 Outlander Sport, the 2008 to 2010 Lancer and the 2010 Lancer Sportback. Government documents say salt used to clear roads in the winter can cause a cross member to corrode. That can cause front control arms to fall off. Control arms let the wheels and tires travel up and down over bumps. Dealers will inspect the suspension and either replace the cross members or apply a sealant. The recall is to start July 14.
WASHINGTON (AP) – President Donald Trump is threatening social media companies with new regulation or even closure after Twitter added fact checks to two of his tweets. Claiming tech giants “silence conservative voices,” Trump tweeted that “We will strongly regulate, or close them down, before we can ever allow this to happen.” Trump and his campaign are lashing out after Twitter added a warning phrase to two Trump tweets that called mail-in ballots “fraudulent” and predicted that “mail boxes will be robbed.” The president can’t unilaterally regulate or close social media companies. That would require action by Congress or the Federal Communications Commission.