Business Highlights: Musk on Trump, high gas prices
Musk says he would reverse Twitter’s ban of Donald Trump
LONDON (AP) — Elon Musk said he will reverse Twitter’s permanent ban of former President Donald Trump if the Tesla CEO follows through with his plan to buy the social media company. Musk, speaking virtually at a Future of the Car summit hosted by the Financial Times, said Twitter’s Trump ban was a “morally bad decision” and “foolish in the extreme.” He said permanent bans of Twitter accounts should be rare and reserved for accounts that are scams or automated bots. Musk earlier gave his support to a new European Union law aimed at protecting social media users from harmful content after he met with the bloc’s single market chief.
Stocks turn mixed on Wall Street a day after big sell-off
NEW YORK (AP) — Stocks ended mixed on Wall Street Tuesday, stabilizing a day after a sharp drop that brought the market to its lowest point in a year. The S&P 500 wound up 0.2% higher after another wobbly day that included a gain of 1.9% and a drop of as much as 0.8%. Gains by big technology stocks, which have been swinging sharply both up and down recently, helped counter losses elsewhere in the market. The Nasdaq rose 1% and the Dow Jones Industrial Average fell 0.3%. Peloton dropped 8.7% after reporting much worse results than analysts were expecting. The yield on the 10-year Treasury fell to 2.99%.
Drivers bemoan high gasoline prices with no relief in sight
NEW YORK (AP) — Just as Americans gear up for summer road trips, the price of oil remains stubbornly high, pushing prices at the gas pump to painful heights. AAA says drivers are paying $4.37 for a gallon of regular gasoline. That’s especially hard on people who drive for a living. The high price of oil is the main cause of the biting gasoline prices. A barrel of the U.S. benchmark crude has been selling for around $100. Oil prices worldwide have been high in recent months, mainly because many buyers are refusing to purchase Russian oil after its invasion of Ukraine.
Yellen trip to Capitol detours into tense abortion debate
WASHINGTON (AP) — Treasury Secretary Janet Yellen’s appearance before a Senate committee took an unexpected and tense detour into the abortion debate Tuesday when senators questioned her about the potential impact of an abortion ban on the American economy. Yellen said that eliminating the right to an abortion could “have very damaging effects on the economy and would set women back decades.” Her answer drew a sharp response from Sen. Tim Scott, who said that framing abortion as a matter of the “labor force participation rate feels callous.” To that, Yellen responded: “This is not harsh, this is the truth.”
Judge to decide how much pharmacies owe over opioid crisis
CLEVELAND (AP) — A hearing began Tuesday in federal court in Cleveland that will help a judge determine how much CVS, Walgreens and Walmart should pay two northeast Ohio counties to help them ease the continuing opioid crisis. A jury in November concluded that the three pharmacy chains were responsible for damage wrought by the opioid epidemic in Lake and Trumbull counties. Plaintiff attorneys before trial said the cost to abate the crisis is around $1 billion for each county. Attorneys for the pharmacy chains in recent court filings said the amount is far lower and damage caused by others should be excluded from any amounts ordered by U.S. District Judge Dan Polster.
Parents hunting for baby formula as shortage spans US
WASHINGTON (AP) — Parents across the U.S. are scrambling to find baby formula because of supply disruptions and a massive safety recall by manufacturer Abbott. Ongoing supply problems have intensified since Abbott shuttered its largest U.S. formula plant due to contamination concerns. Pediatricians are urging parents who can’t find formula to contact food banks or doctor’s offices. They warn against watering down formula to stretch supplies or using online DIY recipes. Major retail chains including CVS and Walgreens are limiting how many containers customers can purchase at one time to conserve supplies. Meanwhile, regulators with the Food and Drug Administration are looking at importing formula to boost U.S. supplies.
New York appeals court dismisses AG suit against Amazon
NEW YORK (AP) — An appeals court in New York has dismissed New York Attorney General Letitia James’ lawsuit against Amazon. Besides potentially exposing workers to the virus at two Amazon facilities in New York City, the lawsuit filed by James last year had said the company illegally retaliated against workers who spoke up about poor safety conditions. The appellate court ruled Tuesday federal labor law preempted state labor law, and the National Labor Relations Board “should serve as the forum” for disputes arising from conduct that’s protected or prohibited by federal labor law, not the states. It also said the efforts to require the retailer to comply with New York’s COVID-19 workplace guidelines was dismissed as moot because the restriction have since been lifted.
Peloton headwinds stiffen as people break pandemic routines
NEW YORK (AP) — Peloton’s uphill ride to get more sales just got rougher as more people return to gyms and other pre-pandemic exercise routines and embrace cheaper options. The maker of high-end exercise bikes and treadmills, once highflying in the early days of the pandemic, reported on Tuesday mounting losses and slowing sales during the company’s fiscal third quarter. It also offered a bleak sales outlook for the current quarter and announced it signed a commitment for hundreds of millions in loans. That raised questions about the viability of the company’s turnaround. Peloton thrived during COVID-19 outbreaks and sales growth for the New York City company doubled in 2020 and surged 120% in its last fiscal year.
The S&P 500 rose 9.81 points, or 0.2%, to 4,001.05. The Dow Jones Industrial Average fell 84.96 points, or 0.3%, to 32,160.74. The Nasdaq gained 114.42 points, or 1%, to 11,737.67. The Russell 2000 index of smaller companies slipped 0.29 points, or less than 0.1%, to 1,761.79.