Stocks trade in narrow range...CVS shares slump...Southwest blasts union
NEW YORK (AP) — Stock indexes have wavered between small gains and losses in afternoon trading as investors reviewed the latest batch of company earnings reports. Gains in materials, energy and financial companies outweighed losses in health care and real estate stocks.
UNDATED (AP) — CVS Health slumped 7.7 percent after the pharmacy operator issued a 2019 outlook that fell short of analysts’ estimates. CEO Larry Merlo said in a prepared statement that 2019 would be “a year of transition” as the company integrates the health insurer Aetna, which it purchased in a roughly $69 billion deal last year. A federal judge is still evaluating the acquisition.
DALLAS (AP) — Southwest Airlines is lashing out at the union representing its mechanics, suggesting that they are purposely grounding planes in order to gain leverage in new contract negotiations. Separately, Southwest said today that the partial shutdown of the federal government will cost it $60 million in lost revenue during the first quarter — far more than the airline’s previous estimate of a $10 million to $15 million.
PARIS (AP) — A French court is ordering Switzerland’s largest bank, UBS, to pay $5.1 billion in fines and damages for helping wealthy French clients evade tax authorities. The ruling sends a stern warning to tax dodgers and the banks that aid them. The Paris court convicted Zurich-based UBS AG of aggravated money laundering of the proceeds of tax fraud and illegal bank soliciting, issuing what French media called a record fine.
DETROIT (AP) — Detroit’s Cobo Center, which hosts the auto show and other major events, is changing its name to remove the surname of a former mayor known for his racist policies. The Detroit Regional Convention Facility Authority announced it has sold Cobo Center’s naming rights to Detroit-based Chemical Bank in a 22-year deal that will generate $1.5 million annually.