Stocks waver…AMC cashes in…Chip factory coming back
NEW YORK (AP) – Stocks have wobbled between small gains and losses on Wall Street as investors returned from a three-day holiday weekend and digested a report showing more growth in manufacturing as the coronavirus pandemic wanes in the U.S. The Institute for Supply Management reported that manufacturing expanded in May at a faster rate than economists had expected. Banks and energy companies were among the biggest gainers.
UNDATED (AP) – The movie theater chain AMC is raising $230.5 million through an 8.5 million share sale, cashing in on the meme stock frenzy that has sent its stock price up more than 1,100% this year. Theaters and other beleaguered industries like restaurants and concert venues are anticipating the return of crowds over the next few months. But AMC is also part of a Wall Street phenomenon that began this year pitting larger, institutional hedge funds against a cadre of online investors, and shares in the companies have soared. Shares of AMC jumped another 20% today.
DETROIT (AP) – The owner of a fire-damaged Japanese factory that supplies many of the auto industry’s computer chips says it’s producing about 88% of what it was making before the March blaze. Renesas Electronics Corp. says in a statement that replacements for fire-damaged equipment arrived on May 27, and should be running in mid-June. That would allow the company to return to full production. The March 19 Renesas fire and a worldwide shortage of computer chips have wreaked havoc on auto industry production schedules.
MIAMI (AP) – The Biden administration has given Chevron and several other American companies six more months to wind down their operations in Venezuela. The special license exempting the companies from U.S. sanctions comes as the Biden administration reviews U.S. policies that seek to starve President Nicolas Maduro’s socialist government of badly needed oil revenue. It allows Chevron and other companies until Dec. 1 to carry out essential work on wells that preserves its assets and employment levels in the nation.
CANBERRA, Australia (AP) – A weekend ransomware attack on the world’s largest meat company is disrupting production around the world just weeks after a similar incident shut down a U.S. oil pipeline. The White House confirms that Brazil-based meat processor JBS SA notified the U.S. government Sunday of a ransom demand from a criminal organization likely based in Russia. The White House says it’s directly engaging with Russia on the issue. JBS says the attack affected servers supporting its operations in North America and Australia, forcing the temporary closure of facilities.