Stocks mixed...Fed raises interest rate...GM to extend summer shutdown at 2 plants
NEW YORK (AP) — Stocks are mixed in afternoon trading on Wall Street. A weak report on retail sales prompted investors to shift money into bonds and high-dividend stocks. Banks fell, while utilities and household goods makers climbed. General Mills and PepsiCo were among the stocks gaining.
WASHINGTON (AP) — The Federal Reserve is hiking a key interest rate for the second time this year and says it will likely do so once more this year. Fed officials increased their projections for economic growth this year to 2.2 percent from the 2.1 percent they forecast in March. They also now expect the U.S. unemployment rate to end the year at 4.3 percent, down from the 4.5 percent they predicted in March, and lowered their favored measure of inflation this year to 1.6 percent this year, from the 1.9 percent they expected in March.
DETROIT (AP) — General Motors is extending the normal two-week summer shutdown at two U.S. car factories because of slumping demand. Union officials say the Lordstown, Ohio, plant near Cleveland and the Fairfax plant in Kansas City, Kansas, will close for as long as five weeks in June and July. The summer shutdown normally lasts two weeks. Lordstown makes the Chevrolet Cruze compact while Fairfax builds the Chevrolet Malibu midsize car. Spokesman Jim Cain says GM is adjusting as the market shifts from cars to trucks and SUVs.
MADISON, Wis. (AP) — A Tawainese company that assembles Apple’s iPhones and other electronics is considering building a plant in Wisconsin that could employ thousands of people. A person with direct knowledge of the negotiations who was not authorized to speak publicly confirmed to The Associated Press that the state is in talks with Foxconn. At least one other state, Michigan, is also pursuing the plant. Foxconn has said the plant could employ 50,000 people.
SHANGHAI (AP) — The Associated Press has found that China has granted preliminary approval for nine Donald Trump trademarks Beijing previously rejected. In addition, China has formally approved 39 Trump trademarks since the inauguration, according to Chinese public records. Trump’s decision to retain ownership of his global branding empire has sparked criticism over perceived conflicts of interest and three lawsuits, including one filed today by nearly 200 Democrats in Congress.