Dow slumps 800 points after bonds flash recession warning
NEW YORK (AP) — The threat of a recession doesn’t seem so remote anymore. The yield on the closely watched 10-year Treasury fell so low Wednesday that it briefly crossed a threshold for the first time since 2007 that has correctly predicted many past recessions. That spooked investors, sending the Dow Jones Industrial Average into an 800-point skid. The S&P 500 index dropped nearly 3% as the market erased all of its gains from a rally the day before.
The bond market smells recession as global stress rises
NEW YORK (AP) — An economic alarm bell is sounding in the U.S. and sending warnings of an economic slowdown. The inversion of the yield on the 10-year Treasury with that of the 2-year Treasury has been a solid indicator of a coming recession for decades. The good news for investors: If it does arrive, the recession likely isn’t imminent.
WeWork reveals rapid growth and massive losses ahead of IPO
NEW YORK (AP) — WeWork’s parent company is giving investors the most detailed look yet at its finances ahead of its anticipated stock market debut. The office-sharing company revealed breakneck growth on the back of massive losses Wednesday in regulatory filing. Investors are looking for a clearer picture of how the venture capital darling plans to chart a path toward profitability, and whether its business model can withstand an economic downturn.
Privacy questions as humans reviewed user audio at Facebook
NEW YORK (AP) — Facebook has paid contractors to transcribe audio clips from users of its Messenger service, raising privacy concerns for a company with a history of privacy lapses. The practice was, until recently, common in the tech industry. Companies say the practice helps improve their services. But users aren’t typically aware that humans and not just computers are reviewing audio. Facebook says it stopped the practice a week ago.
Macy’s sends ominous signal for retailers in 2Q
NEW YORK (AP) — Macy’s is lowering its annual earnings guidance after the department store struggled through the second quarter and was forced to mark down prices. The company said Wednesday a combination of factors including a fashion miss, slow sell-through of warm weather fashions and the accelerated decline in tourism caused rising inventory levels.
German economy shrinks, casting shadow over European growth
FRANKFURT, Germany (AP) — The German economy shrank by 0.1 percent in the second quarter as global trade conflicts and troubles in the auto industry weighed on Europe’s largest economy. The state statistics agency Destatis said Wednesday that falling exports had weighed on output while demand from consumers and government spending at home had supported the economy.
Flights resume at Hong Kong airport as protesters apologize
HONG KONG (AP) — Flights have resumed at Hong Kong’s airport after two days of disruptions that descended into clashes with police, highlighting the hardening positions of pro-democracy protesters and the authorities in the semi-autonomous Chinese city. After nightfall, a new protest outside a police station in the city was dispersed as officers fired tear gas. About three dozen protesters remain camped at the airport, and they apologized to travelers for their blockade that turned chaotic and violent.
Vaping companies sue to delay US e-cigarette review
WASHINGTON (AP) — A vaping industry group is suing the U.S. government to delay a review of electronic cigarettes. The lawsuit filed Wednesday by the Vapor Technology Association says the upcoming review could wipe out smaller companies. The legal challenge is the latest hurdle against the Food and Drug Administration’s effort to regulate e-cigarettes that have come to market over the last decade.
Feds: Capital One suspect may have hacked 30-plus companies
SEATTLE (AP) — Federal prosecutors say a woman charged in a massive data breach at Capital One appears to have hacked more than 30 other organizations. Paige A. Thompson, of Seattle, was arrested late last month after the FBI said she obtained personal information from more than 100 million Capital One credit applications. Prosecutors said servers found in Thompson’s bedroom contained data stolen from more than 30 other companies, educational institutions and other entities.
Chastened Argentine leader offers help for workers, the poor
BUENOS AIRES, Argentina (AP) — A walloping at the polls has led President Mauricio Macri to decree economic relief for poor and working-class Argentines. The measures include an increased minimum wage, reduced payroll taxes, a bonus for informal workers and a freeze in gasoline prices — at least temporarily.
American Airlines seeks flight-cancellation cash from unions
FORT WORTH, Texas (AP) — American Airlines wants labor unions to pay damages over an alleged work slowdown by mechanics that led to hundreds of canceled flights. American isn’t putting a dollar figure on its request, but it says cancellations caused “enormous financial losses.” Earlier this week, a federal judge ruled in American’s favor on the airline’s lawsuit against two unions that together represent the airline’s aircraft mechanics.
The S&P 500 fell 85.72 points, or 2.9%, to 2,840.60. The Dow sank 800.49 points, or 3%, to 25,479.42. The Nasdaq composite lost 242.42 points, or 3%, to 7,773.94. The Russell 2000 index of smaller company stocks slid 43.05 points, or 2.8%, to 1,467.52.