NEW YORK (AP) _ Stocks are mixed in afternoon trading on Wall Street, as gains for technology companies are offset by losses in health care and other sectors. Western Digital rose in early trading, while Bristol-Myers Squibb fell. Caesar’s rose 14% after Eldorado Resorts said it would buy the casino operator.
Small-company stocks fell, while, bond prices rose, sending yields lower. The price of oil fell slightly.
Investors are also looking ahead to a meeting between Presidents Donald Trump and Xi Jinping later this week at the Group of 20 summit in Japan.
Eldorado buying Caesars in $17.3B cash-and-stock deal
LAS VEGAS (AP) _ Eldorado Resorts is buying Caesars in a cash-and-stock deal valued at $17.3 billion, creating a casino giant. The deal today puts about 60 casinos and resorts in 16 states under a single name.
Eldorado will pay a total of $12.75 in cash and stock per share for each Caesars’ share.
The combined business will be called Caesars with shares trading on the Nasdaq. The deal is targeted to close in the first half of next year if approved by gaming regulators and shareholders.
WASHINGTON (AP) —President Donald Trump is signing an executive order that calls for upfront disclosure by hospitals of actual prices for common tests and procedures.
Health and Human Services Secretary Alex Azar (AY’-zahr) says the idea is to give patients practical information that they can use to keep costs down. For example, if a hospital charges $3,500 for a test, but the same test might cost $550 in a doctor’s office, then, the patient might go for the lower-price procedure to save on copays.
Trump’s order sets in motion a rule-making process by federal agencies, so timing for the final result is unclear.
Some health industry players are concerned about the administration’s approach, saying it would force them to disclose contractual information considered trade secrets.
^SUPREME COURT-HEALTH CARE LAW
Supreme Court to review insurers’ Obamacare claims for $12B
WASHINGTON (AP) — The Supreme Court will decide whether insurance companies can collect $12 billion from the federal government to cover their losses in the early years of the health care law championed by President Barack Obama.
The justices announced that they will hear appeals in the fall from insurers who argue that they are entitled to the money under a provision of the “Obamacare” health law that promised insurers a financial cushion for losses they might incur by selling coverage to people in the marketplaces created by the health care law.
The companies cite Health and Human Services Department statistics to claim they are owed $12 billion.
But Congress inserted a provision in the department’s spending bill from 2015 to 2017 to limit payments under the “risk corridors” program.
^SUPREME COURT-TRUMP TARIFFS
Supreme Court rejects early challenge to Trump steel tariffs
WASHINGTON (AP) _ The Supreme Court is rejecting an early challenge to President Donald Trump’s authority to impose tariffs on imported steel based on national security concerns.
The justices left in place a decision by the Court of International Trade that ruled against steel importers and other users of imported steel who challenged the 25% tariff on steel that Trump imposed in 2018.
The importers argue that Trump does not have unbounded authority under the Constitution to regulate trade. They say that job belongs to Congress.
The legal challenge is at an early stage, before a federal appeals court has weighed in. The case could return to the Supreme Court later.
Trump attacks Federal Reserve again, wants interest rate cut
WASHINGTON (AP) _ President Donald Trump is continuing to pressure the U.S. central bank system, saying the stock markets and economic growth would be much higher if not for its actions. Trump says the Federal Reserve “doesn’t know what it’s doing,” saying they raised interest rates too quickly.
At its last meeting, the Fed kept its benchmark rate in a range of 2.25% to 2.5% but hinted at possible future cuts.
The benchmark rate influences many consumer and business loans.
Trump suggests other countries pay the US for protecting tankers
WASHINGTON (AP) _ President Donald Trump is suggesting the United States should not protect ships in the strategic Strait of Hormuz without compensation from other countries.
Trump tweeted today that other countries “should be protecting their own ships on what has always been a dangerous journey” and that the U.S. doesn’t “even need to be there” because of its vast oil supply.
The U.S. blames Iran for attacks on two oil tankers this month near the Strait of Hormuz, denouncing what it called a campaign of “escalating tensions” in a region crucial to global energy supplies.
Iran calls allegations of its involvement in the oil tanker attacks “a lie.”
^SUPREME COURT-SCANDALOUS TRADEMARKS
Justices say scandalous trademarks law is unconstitutional
WASHINGTON (AP) — The Supreme Court has struck down a section of federal law that prevented officials from registering “scandalous” or “immoral” trademarks, handing a victory to a Los Angeles-based fashion brand spelled F-U-C-T.
Lawyers for the brand had argued that the century-old provision should be struck down as an unconstitutional restriction on speech. The Trump administration had defended the provision, arguing that it encouraged trademarks that are appropriate for all audiences.
Warner Bros. names BBC’s Ann Sarnoff as its new CEO
NEW YORK (AP) — WarnerMedia has named BBC executive Ann Sarnoff head of Warner Bros.
She replaces former studio chief Kevin Tsujihara (tsoo-jee-HAH’-rah), who departed in March over misconduct allegations.
Sarnoff is the first woman to lead the 96-year-old Warner Bros. She is currently the president of BBC Studios Americas. She’s also been a top executive with the WNBA and at Viacom.
In March, Tsujihara stepped down following claims that he promised roles to an actress with whom he was having an affair.
AT&T last year acquired Time Warner Inc., which was renamed WarnerMedia. The company is planning to a launch a streaming service later this year.