Mattel announces plans for second US theme park
Wall St. hits record closing highs on rate-cut optimism
Wall Street’s three major stock indexes on Thursday registered record closing highs for the second day in a row after the Federal Reserve reassured investors about the prospects for rate cuts this year. Meanwhile, chip stocks rallied after Micron Technology’s upbeat forecast.
The Dow Jones Industrial Average rose 269.24 points, or 0.68%, to 39,781.37; the S&P 500 gained 16.91 points, or 0.32%, to 5,241.53; and the Nasdaq Composite gained 32.43 points, or 0.20%, to 16,401.84.
The three major indexes had also hit fresh intra-day record highs earlier on Thursday, and the Dow ended the day less than 1% away from the 40,000 for the first time.
U.S. stock indexes had also boasted record closing levels on Wednesday after U.S. central bankers kept borrowing costs unchanged and indicated they still expect to ease interest rates by three-quarters of a percentage point by the end of 2024.
Shares in Micron Technology finished up more than 14% after hitting an all-time high following a surprise quarterly profit and its forecast of third-quarter revenue above estimates.
FDA classifies Abiomed blood pump recall as most serious
The U.S. health regulator on Thursday classified corrections made to the instructions for the use of blood pumps manufactured by Johnson & Johnson’s Abiomed unit as most serious due to the risk of serious injuries and death with their current use.
The labeling updates gave revised instructions for using the device, such as carefully positioning the pump catheter during operative procedures and using imaging when advancing it.
The recalled devices, Impella Left Sided Blood Pumps, are used in providing short-term support to pumping chambers of the heart during some high-risk heart procedures.
Abiomed is recalling some models of the pumps as they could cut through the left ventricle wall of the heart during operations, the U.S. Food and Drug Administration said.
The FDA said the company had sent a correction letter to affected customers with new and revised warnings.
A new Mattel Adventure Park is headed for Kansas. Mattel Inc., whose brands include Barbie, Hot Wheels and FisherPrice, announced the plans on Wednesday in partnership with Epic Resort Destinations.
“Mattel Adventure Park Kansas City will bring our iconic brands to life with epic roller coasters, family-friendly attractions, an immersive theatre, themed dining, and so much more,” Mattel’s Chief Franchise Officer Josh Silverman said in a statement. “We are thrilled to expand these themed entertainment destinations and invite new fans to experience the world of Mattel in all-new ways as they create lasting memories with loved ones.”
It’ll be the second such park in the country. The first Mattel Adventure Park is currently being built in Glendale, Arizona, and is expected to open late this year.
Reddit shares open 38% above IPO price in robust debut
Reddit’s shares opened 38% above the offer price when they started trading on Thursday, valuing the social media platform at $8.87 billion in a closely watched debut that could set the tone for other companies looking to go public.
The San Francisco-based company priced its IPO at the top end of its $31 to $34 range. The IPO valued Reddit at $6.4 billion, while the company and its selling shareholders raised $748 million.
Reddit’s long-awaited entry into public markets has been in the works for more than two years. It confidentially filed for an IPO in Dec. 2021, but a stock rout caused by the Federal Reserve’s quantitative tightening led to a delay.
At one point, shares were trading at $54.18 each after opening at $47.
Southwest Airlines transport workers approve contract
Southwest Airlines said on Thursday ramp, operations, provisioning and cargo agents approved a new five-year labor contract.
The contract covers 18,000 workers, represented by the Transport Workers Union (TWU) Local 555.
In the past two years, unions representing pilots, flight attendants and maintenance workers have sought higher wages, better scheduling and other benefits against the backdrop of a tight U.S. labor market.
The agreement with Southwest constitutes a wage rate of $38 per hour at the top of the wage scale, which TWU had said last month was 6.6% above United Airlines’ current industry-leading rate.
WTO hits roadblock over dispute system reform
The World Trade Organization is struggling to find an ambassador to lead negotiations on fixing its hobbled dispute system by year’s end, trade sources said, as the body’s chief urged countries to keep striving for a deal.
The commitment to continue such efforts in 2024 was one of the few concrete outcomes at the WTO meeting last month in Abu Dhabi, United Arab Emirates.
The talks are aimed at agreeing on reforms to the WTO’s top appeals court, known as the Appellate Body, which has been idle since 2019 due to U.S. blockages of judge appointments.
The lack of an Appellate Body has left dozens of trade disputes worth billions of dollars unresolved.
But days before the Abu Dhabi meeting, the talks’ previous facilitator, Marco Molina from Guatemala, was dismissed by his government.
The global trade watchdog had hoped to propose a replacement at its General Council meeting in Geneva on Thursday and Friday, but three ambassadors declined, trade sources said.
Agreements at the global body are difficult to strike since all 166 of its members must agree.
— Wire reports