Business Highlights: Trucker Yellow declares bankruptcy; Meme stock investors buy Yellow shares
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Trucking giant Yellow Corp. declares bankruptcy after years of financial struggles
NEW YORK (AP) — Trucking company Yellow Corp. has declared bankruptcy after years of financial struggles and growing debt. It marks a significant shift for the U.S. transportation industry and shippers nationwide. The Chapter 11 bankruptcy filed Sunday arrives just three years after Yellow received $700 million in pandemic-era loans from the federal government. But the company was in financial trouble long before that. Industry analysts have pointed to poor management and strategic decisions dating back decades. Experts say former Yellow customers and shippers will face higher prices as they take their business to competitors, including FedEx or ABF Freight. Yellow historically offered the cheapest price points in the industry.
Saudi oil giant Aramco reports $30B in profits, down nearly 40% from last year due to lower prices
DUBAI, United Arab Emirates (AP) — Saudi state-run oil giant Aramco has made $30 billion in profit in the second quarter, a nearly 40% decline from the same period the previous year. It attributed the decline to lower crude oil prices. The company said on Monday that total sales were about $106 billion, down from $150 billion in the second quarter of 2022. Aramco is one of the biggest companies in the world, and Saudi Arabia is looking to oil revenues to fund ambitious plans to overhaul its economy. The company reported a profit of over $160 billion in 2022, the largest ever recorded by a publicly traded firm.
Stock market today: Wall Street rises to regain momentum after last week’s lull
NEW YORK (AP) — Stocks closed higher as Wall Street regained momentum after its big rally for the year took a pause last week. The S&P 500 rose 0.9% Monday to recover more than a third of its loss from last week. That was its first losing week in the last four. The Dow added 407 points, or 1.2%, and the Nasdaq rose 0.6%. Berkshire Hathaway rose after the company run by Warren Buffett reported stronger results than analysts expected. Besides profit reports from media giants like The Walt Disney Co. and Fox, this week will also offer some highly anticipated reports on inflation.
Meme stocks are back as investors buy shares of beaten-down companies such as Yellow and Tupperware
NEW YORK (AP) — A new class of meme stocks has sprung up during the stock market’s surprise recent rally, raising concerns about investors’ willingness to take on bigger risks amid a still uncertain economy. Meme stocks are typically weak companies on the verge of failing, but that still manage to garner attention from individual investors willing to take on risky bets and drive the stock price higher. Investors recently drove up shares of trucking giant Yellow Corp., which on Sunday filed for bankruptcy, and Tupperware, which earlier this year warned that it was in dire financial shape.
More people are opting for early dinners since the pandemic, says OpenTable CEO Debby Soo
When OpenTable CEO Debby Soo joined the restaurant reservation company in 2020, the industry was struggling through the pandemic. These days, she is focused on growing the 25-year-old company, which was acquired by Amsterdam-based Booking Holdings in 2014. OpenTable manages reservations for 55,000 restaurants worldwide and seats more than 1 billion diners per year. Soo has noticed some shifts in dining trends over the years. For instance, there had been a surge of early dinner dining during the pandemic that still remains today, with more people opting to make dinner reservations at 5 p.m. or 6 p.m. instead of the previously more popular 7 p.m. slot.
Simon & Schuster purchased by private equity firm KKR for $1.62 billion
NEW YORK (AP) — Simon & Schuster has been sold to the private equity firm KKR, months after a federal judge blocked its purchase by rival publisher Penguin Random House because of concerns that competition would shrink in the book market. The private equity giant will buy Simon & Schuster for $1.62 billion in cash, said Paramount Global, the parent company of the storied book publisher.
People are losing more money to scammers than ever before. Here’s how to keep yourself safe
NEW YORK (AP) — Business for scammers is booming. The most recent Federal Trade Commission data from 2022 shows that reported consumer losses to fraud totaled $8.8 billion. That’s a 30 percent increase from 2021. The biggest losses were to investment scams, including cryptocurrency schemes, which cost people more than $3.8 billion. Younger adults ages 20-29 reported losing money more often than older adults ages 70-79. But when older adults did lose money, they lost more. With the rise of the digital economy, scammers now reach targets by social media and text, as well as phone and email. Online payment platforms, apps, and marketplaces have also increased opportunities for fraudsters.
Tyson Foods closing 4 chicken processing plants in cost-cutting move
Tyson Foods Inc. is closing four chicken processing plants as it looks to lower costs. The company said Monday that the plants being closed are located in North Little Rock, Arkansas; Corydon, Indiana; Dexter, Missouri and Noel, Missouri. Tyson said that it will shift production to other facilities and halt operations at the four plants in the first two quarters of fiscal 2024. The company also reported its fiscal third-quarter financial results. Tyson posted a loss of $417 million, or $1.18 per share, for the period ended July 1. A year earlier it earned $750 million, or $2.07 per share. Sales fell 3% to $13.14 billion.
Attacks at US medical centers show why health care is one of the nation’s most violent fields
Shootings and other attacks are increasing at hospitals across the U.S., contributing to health care becoming one of the nation’s most violent fields. Numbers from the Bureau of Labor Statistics show American health care workers are now far more likely to suffer nonfatal injuries by violence than workers in any other profession, including law enforcement. They racked up 73% of all such injuries in 2018, the most recent year for which figures are available. Hospitals have armed security officers with handguns, stun guns or batons. Some states allow hospitals to create their own police forces, including Indiana, Ohio and Georgia.
Troubled Toshiba announces buyout offer led by Japan businesses
TOKYO (AP) — Toshiba has announced a 2 trillion yen, or $14 billion, tender offer in a move that would take it private, as the scandal-tarnished Japanese electronics and energy giant seeks to turn itself around. The tender offer led by a buyout fund of major Japanese banks and companies called Japan Industrial Partners starts Tuesday and is priced at 4,620 yen, or about $32, a share. Chairperson Akihiro Watanabe asked shareholders to back the proposal, saying it is the only option for Toshiba Corp. to return to its former strength. Tokyo-based Toshiba also reported a 25 billion yen, or $176 million, loss for the April-June quarter.
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The S&P 500 rose 40.41 points, or 0.9%, to 4,518.44. The Dow Jones Industrial Average rose 407.51 points, or 1.2%, to 35,473.13. The Nasdaq composite rose 85.16 points, or 0.6%, to 13,994.40. The Russell 2000 index of smaller companies rose 1.47 points, or 0.1%, to 1,958.94.