Business Highlights: Wall Street rally, Holmes trial – The Advocate
NEW YORK (AP) — Stocks closed sharply higher on Wall Street, marking the latest about-face for a market that has been unsteadily lurching between gains and losses in recent weeks. The S&P 500 jumped 2.6% Monday, more than recovering the ground it lost in a sell-off on Friday. The Dow added 1.9% and the Nasdaq climbed 3.4%. Bank of America rallied after reporting earnings that beat forecasts. U.K. government bonds rallied following news that the country’s new Treasury chief was abandoning nearly all of a series of unfunded tax cuts that had upset markets.
Key witness in Holmes trial affirms testimony against her
SAN JOSE, Calif. (AP) — A key witness in a trial that led to the conviction of disgraced Theranos CEO Elizabeth Holmes adamantly stood by his testimony during an unusual court appearance Monday. The prosecution witness, former Theranos lab director Adam Rosendorff, made a remorseful appearance at Holmes’ Silicon Valley home after the trial, raising questions about potential misconduct. The hearing focused on Rosendorff, who according to Holmes’ partner William Evans had expressed regrets about his testimony during an Aug. 8 visit. But Rosendorff on Monday repeatedly affirmed that his testimony was truthful and Holmes’ conviction was justified. A judge’s ruling is expected by the end of the month.
UK leader in peril after Treasury chief axes ‘Trussonomics’
LONDON (AP) — New U.K. Treasury chief Jeremy Hunt has reversed most of an economic package announced by the government just weeks ago, including a planned cut in income taxes. Hunt said Monday he was scrapping “almost all” the tax cuts announced last month by the Conservative government and also signaled that public spending cuts are on the way. It was a bid to soothe turbulent financial markets spooked by fears of excessive government borrowing. Hunt said a planned 1 percentage point cut to the basic rate of income tax won’t happen. He also scaled back a cap on energy prices designed to help households pay their bills. Hunt also said more spending cuts are coming.
Kanye West to buy conservative social media platform Parler
NEW YORK (AP) — The rapper formerly known as Kanye West is offering to buy right-wing friendly social network Parler shortly after he was blocked from posting on Twitter and Instagram for antisemitic posts. West, who is legally known as Ye, was locked out of Twitter and Instagram a week ago over antisemitic posts that the social networks said violated their policies. In one post on Twitter, Ye said he would soon go “death con 3 on JEWISH PEOPLE,” according to internet archive records, making an apparent reference to the U.S. defense readiness condition scale known as DEFCON. The potential purchase of Parler would give Ye control of a social media platform and a new outlet for his opinions with no gatekeeper.
US businesses propose hiding trade data used to trace abuse
NEW YORK (AP) — A group of major U.S. businesses wants the government to hide key import data — a move trade experts say would make it more difficult for Americans to link the products they buy to labor abuse overseas. The proposal obtained by The Associated Press was made by an advisory panel comprised of executives from 20 companies, including Walmart, General Motors and Intel. If adopted, it would shroud in secrecy customs data on ocean-going freight responsible for about half of the $2.7 trillion in goods entering the U.S. every year. Human rights activists say it flies in the face of government commitments to be more transparent on trade.
BofA profits fall as bank sets aside money for downturn
NEW YORK (AP) — Bank of America’s profits fell by 8% in the third quarter as the bank set aside cash to cover potential loan losses. It’s the latest bank to start socking away money for a potential recession, as Wall Street’s biggest banks have become increasingly gloomy on the U.S. economy going into the winter. The nation’s second-largest bank said it earned $7.08 billion last quarter, or 81 cents a share, compared to a profit of $7.69 billion, or 86 cents a share, in the same period a year earlier. BofA put $378 million into its loan-loss reserves this quarter — a similar level to Citigroup and Wells Fargo.
Dollar General faces new penalties for store safety issues
NEW YORK (AP) — Federal regulators said Dollar General is facing another $1.68 million in fines after government safety inspectors found violations at four of the chain’s stores in Alabama, Florida and Georgia. During inspections in April 2022, the Occupational Safety and Health Administration found dirty and disorderly storage areas and materials stacked unsafely at locations in Mobile and Grove Hill, Alabama; Tampa, Florida; and Dewy Rose, Georgia. OSHA said those conditions put workers at risk of slipping, tripping and getting struck by falling objects. The company was also cited for fire hazards. OSHA said Dollar General has faced more than $9.6 million in initial penalties after 182 inspections since 2017.
Up to 20 arrested after striking truckers block plant exits
PLYMPTON, Mass. (AP) — Police say as many as 20 people were arrested when striking truckers used tractor-trailers to block the exits at New England’s largest wholesale food distributor. Police said more than 400 Teamster union members arrived at the Sysco facility in Plympton, Massachusetts, in the early morning Monday and stopped about 100 employees from leaving. Police say after two hours of negotiations, 16 to 20 people were arrested on charges including disorderly conduct and assault and battery. About 300 Sysco drivers represented by the Teamsters started their strike Oct. 1 for better pay and benefits. Messages seeking comment were left with union representatives.
The S&P 500 jumped 94.88 points, or 2.6%, to 3,677.95. The Dow Jones Industrial Average surged 550.99 points, or 1.9%, to 30,185.82. The Nasdaq added on 354.41 points, or 3.4%, to 10,675.80. The Russell 2000 index of smaller companies rose 53.35 points, or 3.2%, to 1,735.75.