Investors are still monitoring a steady flow of corporate earnings this week and listening for any statements from the Federal Reserve about potential policy changes on bond purchases and interest rates. The central bank will meet this week and a statement on interest rates policy is scheduled for Wednesday.
Bitcoin rose to $38,000. Electric vehicle maker Tesla reports earnings after the market closes.
NEW HOME SALES
Sales of new homes fall 6.6% in June
WASHINGTON (AP) — Sales of new homes fell for a third straight month in June, dropping by 6.6%. to the lowest level in more than a year.
The Commerce Department says the June sales decline left sales at a seasonally adjusted annual rate of 676,000. That followed a 7.7% sales decline in May and a 10.1% fall in April. The June sales pace was down 19.4% from a year ago and was the slowest pace since April 2020.
Housing has been a stand-out performer since the economy began emerging from the steep but short pandemic recession in April last year.
Inflation fears and politics shape views of Biden economy
WASHINGTON (AP) — A new poll from The Associated Press-NORC Center for Public Affairs Research finds that 54% of Americans judge the economy to be in poor shape. That’s compared with 45% who say conditions are good.
The results point to the risks of inflation to President Joe Biden’s agenda.
Biden’s $1.9 trillion coronavirus relief package and the strong gains in jobs have not swayed public opinion much. The results suggest that inflation worries many Americans who filter their thoughts about the economy through their politics.
About 6 in 10 Democrats call the economy good, while three-quarters of Republicans say conditions are poor.
Infrastructure talks face new trouble as pressure mounts
WASHINGTON (AP) — Senators are running into new problems as they race to seal a bipartisan infrastructure deal.
Pressure is mounting on all sides to show progress. It’s a make-or-break week on President Joe Biden’s top priority.
One major roadblock is how much money should go for public transit. But spending on water projects, broadband and other areas remains unresolved, as is tapping COVID-19 funds to help pay.
Democrats and the White House sent an offer to Republicans late Sunday to finish the remaining issues, but it was rebuffed by Republicans as “discouraging.”
WARMING RIVERS-DYING FISH
Warming rivers in US West killing fish, imperiling industry
SAN FRANCISCO (AP) — Baby salmon are dying by the thousands in one California river and an entire run of endangered salmon could be wiped out in another.
Fishermen who make their living off adult salmon, once they enter the Pacific Ocean, are sounding the alarm as blistering heat waves and extended drought in the U.S. West raise water temperatures and imperil fish from Idaho to California.
A crash in one year’s class of young salmon can have lasting effects on the total population and shorten or stop the fishing season. That could be devastating to the commercial salmon fishing industry, which in California alone is worth $1.4 billion.
Fishermen say the high cost of salmon is already pricing some customers out.
Business travel rebounding more slowly than leisure travel
UNDATED (AP) — Business travel is starting to recover from the pandemic, but the road warriors are coming back much more slowly than vacation travelers.
That makes a big difference to airlines, which make as much as half of their revenue from business travel. Airline officials expect business travel to pick up noticeably after Labor Day, once more offices and schools are open.
Business travelers are cautiously planning their return. Some experts thinks business trips might be fewer and more carefully selected, but last longer. Others believe the pandemic will lead to different kinds of travel, but not necessarily less, with fewer conferences and more chances for far-flung employees to get together on projects.
PerkinElmer to pay $5.25B for antibody maker BioLegend
UNDATED (AP) — PerkinElmer will spend about $5.25 billion to acquire BioLegend, which makes antibodies used in gene therapy and reagents for drug discovery.
The Waltham, Massachusetts, company said Monday that it will pay cash and stock for the privately held BioLegend in a deal expected to close by the end of the year. PerkinElmer, which sells testing equipment and scientific instruments, called the acquisition the largest in company history. It estimates that BioLegend will generate $380 million in revenue next year.
BioLegend has more than 700 employees based mostly in the United States. Its products are used in research areas like immunology, oncology and neuroscience.
LORDSTOWN, Ohio (AP) — Startup commercial electric vehicle maker Lordstown Motors says it has received a $400 million investment from a private equity firm.
The struggling Ohio company says in a filing Monday with the Securities and Exchange Commission that a New Jersey-based hedge fund (YA II PN Ltd) has agreed to buy $400 million of its stock.
Shares of the company went up 5 percent in trading Monday after a steady fall the past month.
Lordstown’s operations have been under increasing scrutiny in recent months after the company said it had no firm orders for its vehicles. The company’s CEO and chief financial officer then resigned.
Tobacco CEO sees end to cigarettes in Britain in 10 years
UNDATED (AP) — The CEO of Philip Morris International was quoted by Britain’s Mail on Sunday as saying that the tobacco company foresaw an end to its sales of traditional cigarettes in Britain within 10 years. He said he wanted “to allow this company to leave smoking behind.”
Jacek Olczak was quoted as saying. “I think in the UK, ten years from now maximum, you can completely solve the problem of smoking.” Asked if that meant Philip Morris would stop selling traditional cigarettes in the UK within that time, he was quoted as saying, “Absolutely.”
Philip Morris International has said its goal is to replace cigarettes with alternatives such as its IQOS heated tobacco system. The government has said it wants to end smoking in England by 2030.