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General Motors is recalling almost a half million vehicles over safety belts.
The automaker says belts with a defective rivet may not properly restrain an occupant, increasing the risk of injury during a crash.
The recall covers certain 2021-2022 Cadillac Escalade, Escalade ESV, Chevrolet Suburban, Tahoe, GMC Yukon, and Yukon XL vehicles equipped with third-row seats. The rivet that retains the buckle to the mounting bracket in the left or right side third-row seat belt buckle assembly may have been improperly formed.
Dealers can inspect the rivet head formation on both the left and right side third-row seat belt buckle assemblies and replace seat belt buckle assemblies, as necessary, free of charge.
Solid results and forecasts from Walmart and Home Depot contributed to a 239+ point gain for the Dow Jones Industrial Average while also lifting the S&P’s consumer discretionary names. The tech-heavy Nasdaq Composite registered a slight drop as Apple and Facebook slipped. In commodities, oil fell over 3% to $86.53 per barrel, the lowest level since January.
Former Dallas Fed Adviser Danielle DiMartino Booth discusses the state of the economy, arguing the consumer is still consuming.
More than 200,000 former students of ITT Technical Institute will not have to pay back billions of dollars of student loans.
The US Department of Education approved a $3.9 billion group discharge for borrowers who attended the school between January 1, 2005, through its closure in September 2016.
"The evidence shows that for years, ITT's leaders intentionally misled students about the quality of their programs in order to profit off federal student loan programs, with no regard for the hardship this would cause,” Secretary of Education Miguel Cardona said.
Today's action brings the total amount of loan relief approved by the Biden-Harris Administration to nearly $32 billion for 1.6 million borrowers. This includes $13 billion related to institutions that took advantage of borrowers.
Eighteen people are facing federal charges of hacking into retail brokerage accounts and using them to buy microcap stocks for the purpose of manipulating share prices and trading volumes.
The Securities and Exchange Commission said the hackers accessed at least 31 accounts in 2017 and 2018 and used them to purchase the securities of Lotus Bio-Technology Development Corp. and Good Gaming,
The unauthorized purchases allegedly enabled fraudsters, who already controlled large blocks of those two stocks, to sell their holdings at artificially high prices and reap more than $1 million in illicit proceeds.
“This case illustrates the critical importance of cybersecurity and of our ongoing efforts to protect retail investors from cyber fraud,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.
Production at U.S. factories increased more than expected in July as output rose at motor vehicle plants and elsewhere, pointing to underlying strength in manufacturing despite ebbing business confidence.
Manufacturing output rebounded 0.7% last month after declining 0.4% in June, the Federal Reserve said on Tuesday. Economists polled by Reuters had forecast factory production would rise 0.2%. Output increased 3.2% compared to July 2021.
Manufacturing, which accounts for 11.9% of the U.S. economy, remains supported by strong demand for goods even as spending is gradually shifting back to services. But risks are rising, with retailers sitting on excess inventory, especially of apparel.
Production at auto plants surged 6.6% last month. Excluding motor vehicles, manufacturing rose 0.3%. Output of long-lasting manufactured consumer goods increased 3.5%, while that of nondurable consumer goods fell 0.3%.
Mining production increased 0.7%, continuing to be underpinned by oil and gas extraction. Output at utilities fell 0.8%. The rise in manufacturing and mining output helped to lift overall industrial production by 0.6%. Industrial output was unchanged in June.
Stocks struggled to find direction as investors weighed a basket of retail earnings from the likes of Walmart and Home Depot, against more muted data on housing. Starts and permits, signs of future demand, both declined. In commodities, oil slipped to the $88 per barrel level.
The number of new homes under construction in July fell much more than expected to a seasonally adjusted annual rate of 1.446 million, the Commerce Department said on Tuesday.
Walmart Inc. on Tuesday forecast a smaller drop in annual profit than it had predicted less than a month ago, after deep discounts to clear excess merchandise and a drop in fuel prices helped it beat expectations for quarterly sales.
Walmart's total revenue rose 8.4% to $152.86 billion in the second quarter, helped by demand for food and other essential items. Analysts had estimated revenue of $150.81 billion, according to IBES data from Refinitiv.
Net earnings increased to $5.17 billion, or $5.05 per share, for the second quarter ended July 31, from $4.81 billion, or $4.53 per share, a year earlier.
Read the full story: Home Depot beats quarterly sales estimates
Cryptocurrency prices were mixed early Monday, with Bitcoin and Ethereum lower and Dogecoin trading higher.
At approximately 4:30 a.m. ET, Bitcoin was trading at nearly $24,025 (-0.52%), or lower by nearly $120.
For the week, Bitcoin was trading higher by nearly 1.5%. For the month, the cryptocurrency was higher, gaining more than 15.75%.
Ethereum was trading at approximately $1,880 (-1.35%), or lower by nearly $25.75.
For the week, Ethereum was trading higher by about 7.45%. For the month, it was trading higher by almost than 54.5%.
Meanwhile, Dogecoin was trading at $0.082881 (+7.67%), or higher by approximately $0.005901.
For the week, Dogecoin was higher by around 9.75%. For the month, the crypto was higher by more than 22%.
One of the biggest revenue raisers in Democrats’ latest health care and climate change spending bill is a new minimum tax on companies’ book income – but the levy will hit some industries harder than others.
The Inflation Reduction Act of 2022 – introduced by Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.Va. – would impose a 15% minimum on corporations based on profits they publicly report on their financial statements to shareholders. The tax would only apply to companies that reported more than $1 billion in income.
Democrats said the levy would affect around 200 of the country's largest corporations – with profits exceeding $1 billion – that pay less than the current 21% rate for businesses.
Schumer and Manchin estimated the tax would generate about $313 billion in new revenue over the next decade. But the tax would be disproportionately borne by certain industries, thanks to a number of carve-outs, according to an updated analysis of the proposal conducted by the nonpartisan Tax Foundation, which advocates for lower taxes.
The real estate, rental and leasing industry would face the heaviest burden under the book tax minimum, seeing a net tax hike of 12.7%. That would be followed by mining, which faces a 4.6% tax hike.
In dollar terms, the industries that would account for the largest book minimum tax liabilities are manufacturing ($65.9 million) and finance, insurance and management ($39.4 million).
These industries see a sharper impact because they are at the intersection of the different book tax gaps targeted by Congress.
Lawmakers are looking to go after permanent discrepancies between the two measures from firms paying low taxes, but the proposal will more severely affect businesses with temporary timing differences between financial and taxable income; deliberate tax incentives created by Congress (such as bonus depreciation); and special items that show up in one income definition but not the other, the Tax Foundation said.
The average price of a gallon of gasoline fell to $3.949 on Tuesday after dropping to $3.956 on Monday and slipping on Sunday to $3.959, according to AAA. Saturday's price was $3.965.
The price dropped below $4 for the first time since March last Thursday, when the price fell to $3.99.
One week ago, the nationwide price of a gallon a gasoline stood at $4.033. One month ago, the price was $4.548, while a year ago, that same gallon of gasoline cost $3.187.
Gasoline has been on the decline since hitting a high of $5.016 on June 14.
Diesel prices also slipped on Tuesday to $5.021 after falling on Monday to $5.033. On Sunday, a gallon of diesel cost $5.041, while on Saturday, that same gallon of diesel cost $5.047.
On week ago, the nationwide price for a gallon of diesel was $5.12. A month ago, a gallon of diesel was $5.553 while a year ago, diesel sold for $3.297 per gallon.
U.S. stocks were whipsawing entering Tuesday morning with all three indexes trading cautiously throughout the overnight.
Stocks on Wall Street bounced back and closed higher Monday, extending the market's recent winning ways as investors look ahead to several updates from retailers this week.
The S&P 500 rose 16.99 points, or 0.4%, to 4,297.14 on Monday. The Dow added 151.39 points, or 0.5%, to 33,912.44. The Nasdaq gained 80.87 points, or 0.6%, to 13,128.05. The Russell 2000 rose 4.73 points, or 0.2%, to 2,021.35.
The market got off to a bumpy start as traders reacted to news overnight Sunday China’s central bank cut a key interest rate, acknowledging more needed to be done to shore up its economy.
The move is the latest warning for markets already on edge over record-high inflation and fears about recessions in the U.S. and elsewhere. China is the world’s second-largest consumer of crude oil, so the news weighed on energy prices.
U.S. crude oil prices slumped 2.9% on worries about the global economy and weighed heavily on energy stocks.
Nine of the S&P 500's 11 sectors rose Monday, with consumer staples and utilities leading the gains. Energy and materials stocks declined with commodity prices.
Stocks have generally rallied since mid-June. Signs that inflation in the U.S. peaked earlier this summer have investors hoping the Federal Reserve will raise rates at a slower pace starting in September.
That in turn has dragged yields on government bonds down from their highs of the year and given a boost to the stock market. The yield on 10-year U.S. Treasuries slipped to 2.790% from 2.848% Friday.
Some investors say stocks have fallen far enough this year to become attractive buying opportunities again.
The S&P 500 has climbed 17% since June 16 but remains down 9.8% in 2022.
"When the S&P 500 falls, there's a knot in your stomach, but when you're scared -- that's the right time to be buying," said Peter Boockvar, chief investment adviser of Bleakley Financial Group, who is buying quality value stocks.
Meanwhile, Asian shares mostly rose Tuesday after Monday’s rebound on Wall Street, despite regional investor risks reflected in negative economic data out of China.
The benchmark in Tokyo was little changed, erasing earlier gains, but indexes in South Korea and Australia gained. Hong Kong's benchmark slipped, while Shanghai shares rose.
Oil prices fell on Tuesday as bleak economic data from top crude buyer China renewed fears of a global recession.
Brent crude futures fell $1.21, or 1.3%, to $93.89 a barrel by 0635 GMT.
WTI crude futures dipped 84 cents, or 0.9%, to $88.57 a barrel.
The oil future benchmarks fell about 3% in their previous sessions.
China's central bank cut lending rates to revive demand as the nation's economy slowed unexpectedly in July, with factory and retail activity squeezed by Beijing's zero-COVID policy and a property crisis.
China's fuel product exports are expected to rebound in August to near a one-year high after Beijing issued more quotas, adding pressure to already-cooling refining margins.
Investors also watched talks to revive the 2015 Iran nuclear deal.
More oil could enter the market if Iran and the United States accept an offer from the European Union, which would remove sanctions on Iranian oil exports, analysts said.
Iran responded to the European Union's "final" draft text to save a 2015 nuclear deal on Monday, an EU official said, but provided no details on Iran's response to the text.
The Iranian foreign minister called on the United States to show flexibility to resolve three remaining issues.
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