Stocks rise...Fed says it will remain ‘patient’ in rate hikes...GM extends life of Detroit factory
NEW YORK (AP) — Technology and health care companies are leading stocks higher in afternoon trading on Wall Street, erasing some of yesterday’s losses. The broad rally comes as investors weigh a mixed batch of corporate earnings reports. Traders also continue to await developments in Washington, where negotiators from the U.S. and China are holding another round of trade talks.
WASHINGTON (AP) — The Federal Reserve says that in light of a slowing global economy and last year’s financial market turmoil, the central bank intends to remain “patient” in determining when to make future changes in its benchmark interest rate. The Fed’s semi-annual report to Congress on monetary policy stands in contrast to its last report in July, when it signaled that it was on track to keep raising rates at a gradual pace over the next two years. The new report cites a range of risks to the economy that have developed over the last six months, as well as continued muted inflation.
DETROIT (AP) — General Motors extending the life of its only Detroit factory until early next year. The plant on the border of Detroit and the hamlet of Hamtramck (ham-TRAM’-ihk) was to stop making vehicles as of June 1. The company now says production of the Chevrolet Impala and Cadillac CT6 will continue into January of 2020. The factory is one of five that GM plans to shutter as part of a restructuring to cut costs and reduce underused plants. In all, GM is shedding about 5,000 factory jobs and another 8,000 salaried workers.
ALBANY, N.Y. (AP) — New York Gov. Andrew Cuomo says Amazon’s backing out of a deal to put one of its second headquarters in New York City is the “greatest tragedy” he has seen since he’s been in government. He’s blaming fellow Democrats who control the state Senate, including Sen. Michael Gianaris, who represents the Long Island City neighborhood where Amazon wanted to base 25,000 jobs. Cuomo spoke today on public radio station WAMC.
DALLAS (AP) — Hundreds of Southwest Airlines flights have been delayed as the carrier deals with winter weather and a computer outage. The outage occurred early today and grounded Southwest flights around the country for nearly an hour. A spokesman for the Federal Aviation Administration says Southwest had a problem with a system that transmits flight plans to the FAA. The airline says some of the delays are due to winter weather.