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Stephen King testifies for the government at the book merger hearing.
WASHINGTON (AP) — Best-selling author Stephen King has testified in a federal antitrust trial in Washington. In the year Tracing his own story as an unknown author in the 1970s, King presents a portrait of the publishing industry that has evolved over the years. He testified as a witness for the US Department of Justice. The government is trying to convince a federal judge that a merger between Penguin Random House and rival Simmons & Schuster would hinder competition. In his testimony Tuesday, King described himself as a “freelance writer.” “Mergers are bad for competition,” says Publisher.
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Home panel gun manufacturer attorney for information on gun sales
WASHINGTON (AP) — Gun maker Smith & Wesson is facing new scrutiny from Congress. A House oversight panel on Tuesday questioned the company for manufacturing and selling AR-15-style assault rifles. The move comes after Smith & Wesson’s CEO refuses to be heard on mass shooting devices. The committee initially agreed to allow the Massachusetts company’s CEO, Mark P. Smith, to testify, along with executives from two other companies, but that was abruptly canceled. Representative Carolyn B. Maloney, Democrat of New York, said the company did not provide all the information the committee needed to investigate profits from AR-15-style assault rifle makers.
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Stocks slide on Wall Street
NEW YORK (AP) — U.S. stocks fell on Tuesday as Wall Street’s modest August retreat continued for another day. Stocks wobbled on the day as investors were unsure whether the market’s strong run in July was the start of a turnaround or a temporary blip. The S&P 500 fell 0.7% and the Nasdaq and Dow Jones Industrial Average fell. Analysts cited comments from Federal Reserve officials that indicated interest rate hikes were on the way to curb inflation. Caterpillar scored higher after reporting weaker-than-expected sales. Shares of Uber are up following its own strong quarterly report. Treasury yields rose.
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The number of uninsured Americans has dropped to low enrollment
WASHINGTON (AP) — The number of people living in the U.S. without health insurance coverage is 8 percent lower than ever this year, the U.S. Department of Health and Human Services announced Tuesday. The findings come days after Democrats scrapped a 725-page climate, health care and tax deal that would have reduced the number of uninsured Americans with generous federal subsidies for people who buy private health insurance. Democrats have proposed spending $64 billion to extend those rate breaks for another three years.
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US job openings fell to 10.7 million in June.
WASHINGTON (AP) – U.S. employers posted fewer job openings in June as the economy rebounded from high inflation and rising interest rates. The Labor Department said Tuesday that job openings fell to a still-high 10.7 million in May from 11.3 million in June. According to the Labor Department’s monthly survey of job openings and turnover, the number of Americans leaving their jobs fell slightly in June, while layoffs also fell. The labor market has been strong this year, with employers adding an average of 457,000 jobs per month through 2022. And unemployment is at a 50-year low.
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Elon Musk’s tech partners were wrong about the Twitter call
SAN FRANCISCO (AP) — Elon Musk’s wealthy high-tech partners don’t seem too happy about receiving a subpoena from Twitter as part of the company’s legal battle with Tesla’s CEO. San Francisco-based Twitter has sued Delaware-based Musk to help it complete its $44 billion acquisition of the social media company. According to a report from the Washington Post, Twitter’s legal team has subpoenaed information about several tech investors and entrepreneurs connected to Musk in a broad subpoena. Twitter declined to comment. One of those who received the summons posted a picture of the cover of Mad magazine as he stuck out the middle finger.
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Starbucks records revenue as the number of stores increases
Starbucks reported record earnings in the April-June period, benefiting from hundreds of new stores and higher prices. The Seattle-based coffee giant’s revenue rose 9 percent to $8.2 billion, a quarterly record. That beat Wall Street forecasts. Global same-store sales, or sales at stores open at least a year, rose 3%, just shy of Wall Street expectations. Starbucks said traffic was slow, largely due to the shutdown in China. But customers spent more when they visited. Starbucks said its net income fell 21 percent as the company spent more on labor, employee training and supply chain costs.
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Airbnb posted a 2Q profit of $379 million on record bookings
Airbnb reported a profit of $379 million for the second quarter and bookings were at a record. The company announced on Tuesday that it would spend up to $2 billion to buy back its own stock, which usually drives the stock price higher. The results are a reversal of losses last year and the second quarter of 2019. Airbnb is benefiting from the increase in travel and the migration of workers from the office, allowing them to work from anywhere they have access to the Internet. Airbnb said bookings in the second quarter were up a quarter from last year and from the second quarter of 2019.
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Despite the big Q2 loss, Uber stock is growing on a positive trend.
SAN FRANCISCO (AP) — Uber’s efforts to pioneer its ride-hailing service by simplifying food and cargo delivery showed signs of growth last quarter, even as the company suffered heavy losses due to a sharp drop in foreign investment. Instead of dwelling on Uber’s $2.6 billion second-quarter loss announced Tuesday, investors focused on a major milestone for the San Francisco-based company. The good news came under a key metric known as free cash flow. Uber generated $382 million in cash in the April-June period, the most in the company’s 13-year history after a quarterly cash flow. The discovery helped push Uber’s fall stock up 17 percent.
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The S&P 500 fell 27.44 points, or 0.7%, to 4,091.19. The Dow Jones industrial average fell 402.23 points, or 1.2 percent, to 32,396.17. The Nasdaq shed 20.22 points, or 0.2%, to 12,348.76. Russell’s
