Apple soars as energy, industrials stocks sag
Apple surged to its biggest gain in a year and a half Wednesday and drew closer to $1 trillion in value after it reported stronger iPhone sales and rising prices. But losses for energy and industrial companies left major stock indexes lower.
Already the most valuable company in the U.S., Apple was the biggest gainer of any S&P 500 stock Wednesday and the technology giant finished at another record high. That made up for a lot of losses elsewhere in the market.
Investors were following reports that the Trump administration is considering a higher tax rate on Chinese imports. Energy and materials companies fell with the price of oil and metals and car companies also declined.
As expected, the Federal Reserve left interest rates unchanged, but suggested it’s likely to raise rates again in September. High-dividend stocks like consumer products makers sank as bond yields increased. Automakers fell as they reported their monthly sales.
Tesla ramp-up triggers massive $718M loss
PALO ALTO, CALIF. – Tesla Inc. burned through $739.5 million in cash last quarter as it geared up a factory to crank out more electric cars, leading to a $717.5 million net loss.
The company says it lost $4.22 per share as revenue grew 43 percent to just over $4 billion from April through June.
Adjusted for stock-based compensation, the company lost $3.06 per share. That was worse than Wall Street estimates. Analysts polled by FactSet expected a $2.88 loss.
The net loss more than doubled from the same quarter a year ago.
Tesla spent millions as it reached a goal of producing 5,000 Model 3 sedans per week by the end of June. Cash from Model 3 sales is key to holding off more borrowing. CEO Elon Musk has promised a net profit in the third and fourth quarters.
Wells to pay $2.1B for housing bubble role
NEW YORK – Wells Fargo is agreeing to pay a $2.1 billion fine to settle allegations it misrepresented the types of mortgages it sold to investors during the housing bubble and subsequent financial crisis.
The amount is smaller than fines paid by Bank of America, JPMorgan Chase, Goldman Sachs and other big banks in the years following the financial crisis to settle similar allegations.
Wells Fargo is one of the last remaining big banks to settle charges related to its role in the subprime mortgage crisis.
The fine is unrelated to the more recent scandals that have plagued Wells, such as the opening of millions of fake accounts for customers without their authorization in order to meet unrealistic sales quotas.
Boeing plans office site in Boston area
CAMBRIDGE, MASS. – Aerospace manufacturing giant Boeing has decided to expand its presence in Massachusetts.
The company has agreed to lease about 100,000-square-feet in a planned Cambridge office building. The Boston Globe reported the Massachusetts Institute of Technology is going to build the space next to a transportation hub.
Boeing said it will be the local home of its new subsidiary, Aurora Flight Sciences, which develops unmanned aircraft technology. It was also serve as a new Aerospace and Autonomy Center for the company.
The building will be 343,000-square-feet, and is part of a $2 billion complex planned for the area.
Survey: U.S. firms added 219,000 jobs
WASHINGTON – U.S. businesses added 219,000 jobs in July, a private survey found, a robust total that suggests employers are still able to find the workers they need despite the low unemployment rate.
Payroll processor ADP said Wednesday that hiring was led by health care providers, hotels and restaurants, and manufacturers. July’s figure was up from 181,000 in June and is enough to lower the already-low jobless rate of 4 percent over time.
Tax cuts and greater government spending are accelerating the economy’s expansion. Growth reached an annual rate of 4.1 percent in the April-June quarter, the fastest in four years. The pickup comes as the economic expansion enters its tenth year, the second-longest in U.S. history.
This article provided by NewsEdge.