Business Highlights
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With loan money gone, restaurants are at mercy of virus
NEW YORK (AP) — Many restaurants that got coronavirus relief loans have spent the money and now find themselves in the same precarious position as in the pandemic’s early days. Owners are still struggling with revenue far below normal, and that has forced them to again lay off staffers. Meanwhile, the virus’s resurgence in parts of the country has prompted officials in California, Texas, Florida and other states to order restaurants shut for a second time. Congress is debating another relief bill that potentially will have more help for small businesses; while restaurant owners will welcome the aid, they will remain at the mercy of the virus that has decimated their business.
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Retail rout gains pace, Lord & Taylor seeks bankruptcy
NEW YORK (AP) — Lord & Taylor is seeking bankruptcy protection, as is the owner of Men’s Wearhouse and Jos. A. Bank, lengthening the list of major retail chains that have faltered in the pandemic. Household retail names, many longtime anchors in malls nationwide, were already struggling to keep up with a radical reformation in what people buy, and where they buy it. Much of that activity has moved online. Thousands of store closures forced by the arrival of COVID-19 has proved too much. Lord & Taylor, which began as a Manhattan dry goods store in 1824, was sold to the French rental clothing company Le Tote Inc. last year. Both filed for bankruptcy protection, separately, in the Eastern Court of Virginia on Sunday.
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Stocks rally worldwide, S&P 500 back to within 3% of record
NEW YORK (AP) — Stocks closed broadly higher on Wall Street and around the world Monday following several encouraging reports on the economy. The S&P 500 added another 0.7% onto its four-month winning streak. The benchmark index is now back within 3% of the record high it set in February. Big Tech led the way higher again, and Microsoft and Apple alone accounted for most of the S&P 500′s gain. Earlier, reports showed that manufacturing improved across much of the world, including in Europe and the United States. Treasury yields, small-company stocks and crude oil prices also rose.
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As US milk sales rise amid pandemic, “Got milk?” ads return
NEW YORK (AP) — The dairy industry has a familiar question for you: “Got milk?” Six years after the popular tagline was retired, “Got milk?” ads are back. The dairy industry is reviving the campaign hoping to prolong the U.S. sales boost milk has gotten during the pandemic. From January through mid-July, U.S. milk retail sales were up 8.3% to $6.4 billion, according to Nielsen. During the same period last year, milk sales were down 2.3%. The dairy industry says kids are eating lunches at home and adults have more time for breakfast and cooking with milk.
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Google buys $450M stake in ADT to give Nest a new perch
SAN RAMON, Calif. (AP) — Google is paying $450 million for a nearly 7% stake in longtime home and business security provider ADT Inc. It’s a deal that will open new opportunities for one of the internet’s most powerful companies to extend the reach of its Nest cameras and voice-activated voice assistant. The partnership announced Monday requires ADT to use Nest’s internet-connected cameras, as well as another device called the Nest Home Hub that comes with an internet-connected camera, as part of is customers’ security systems. Both devices also are equipped with Google’s digital assistant. ADT, a company with roots dating back to 1874, currently has 6.5 million customers.
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US Treasury projects record Q3 borrowing of $947 billion
WASHINGTON (AP) — The Treasury Department is projecting government borrowing of $947 billion in the current July-September period, which would be a record for the quarter but down from the all-time high of $2.75 trillion in this year’s second quarter. Treasury officials announced Monday that the government also plans to borrow $1.22 trillion in the October-December period. The amounts include $1 trillion in expected borrowing to finance another economic stimulus package, which at the moment is tied up in negotiations between Democrats and Republicans. The House in May approved a $3.5 trillion measure which the Republican-controlled Senate has refused to take up. Instead, GOP senators have indicated they favor a smaller $1 trillion package.
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GM alleges Fiat Chrysler spent millions to bribe UAW leaders
DETROIT (AP) — General Motors is asking a federal judge to reconsider dismissal of a lawsuit against Fiat Chrysler based on new allegations that FCA bribed union officials and GM employees with millions stashed in secret foreign bank accounts. The allegations were made in a court motion filed Monday by GM. The company alleges that payments were made so the officials would saddle GM with more than $1 billion in additional labor costs. The union and Fiat Chrysler wouldn’t immediately comment. In July, a U.S. district judge in Detroit tossed out GM’s lawsuit that alleged that Fiat Chrysler paid off union leaders to get better contract terms than GM.
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The S&P 500 rose 23.49 points, or 0.7%, to 3,294.61. The Dow Jones Industrial Average rose 236.08 points, or 0.9%, to 26,664.40. The Nasdaq composite ended up 157.52, or 1.5%, to 10,902.80. The Russell 2000 index of smaller-company stocks rose 26.38 points, or 1.8%, to 1,506.80.