Wall Street’s jumping … Trump pulls back from brink of trade war with China … Divided Supreme Court rules for businesses over workers
NEW YORK (AP) – Stocks are jumping this morning after the U.S. and China appeared to make major progress in trade talks. Technology and industrial companies and retailers are making some of the biggest gains. At 10:25 a.m. Eastern Time, the S&P 500 index climbed 22 points, to 2,735. The Dow Jones industrial average rose 315 points, to 25,030. And the Nasdaq composite gained 61 points, to 7,415. The Russell 2000 index of smaller-company stocks jumped 9 points, or 0.6 percent, to 1,636.
WASHINGTON (AP) – President Donald Trump is praising the latest trade talks with China, declaring that “barriers and tariffs” with Beijing will “come down for the first time.” This comes after his Treasury Secretary, Steven Mnuchin, declared the looming trade war on “hold” after China agreed to increase its purchases of U.S. goods and services. China isn’t specifying just how much it will reduce America’s trade deficit. The Trump administration had sought a deficit reduction of $200 billion.
WASHINGTON (AP) – The Supreme Court says employers can prohibit their workers from banding together to complain about pay and conditions in the workplace. The justices ruled 5-4 today that businesses can force employees to individually use arbitration to resolve disputes. The outcome is an important victory for business interests. An estimated 25 million people work under contracts that prohibit collective action by employees who want to raise claims about some aspect of their employment.
WASHINGTON (AP) – A dispute about the size of eye drops has failed to catch the eye of the Supreme Court. Drug companies including Allergan, Bausch & Lomb, Merck and Pfizer had asked the court to get involved in the case after patients complained that drug companies’ bottles dispense drops that are too large, leaving wasted medication running down their faces. Now, a lower-court decision allowing the lawsuit to go forward will stand.
NEW YORK (AP) – General Electric will tie its train engine division to the railroad equipment maker Wabtec in deal worth about $11 billion as GE CEO John Flannery continues to break off parts of the conglomerate. Wabtec CEO Raymond Betler will lead the combined company and its chairman, Albert Neupaver, will be executive chairman. Under the deal announced today and approved by the boards of both companies, General Electric Co. will get $2.9 billion in cash.