Business Highlights
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Tech rout pulls Nasdaq down 3.5%, biggest loss since October
NEW YORK (AP) - A rout in technology companies pulled the Nasdaq down 3.5% Thursday, the biggest loss for the tech-heavy index since last October. The S&P 500 gave up 2.4% and the Dow Jones Industrial Average lost a more modest 1.8%, a day after the blue chip index set a record high. A steady march higher in Treasury yields has been drawing money out of the stock market and leading investors to question whether the massive run-up in Big Tech valuations in recent months has been excessive. Bond yields are rising as investors anticipate more stimulus from Washington, greater economic growth and possibly a pickup in inflation.
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Mr. Potato Head brand goes gender neutral, sort of
NEW YORK (AP) - Hasbro created confusion on Thursday when it removed the gender from its Mr. Potato Head brand, but not from the actual toy. The company, which has been making the potato-shaped plastic toy for nearly 70 years, announced on Thursday that it was dropping Mr. from the brand in an effort to make sure "all feel welcome in the Potato Head world." That set off a social media frenzy over the beloved toy. Later that afternoon, Hasbro clarified in a tweet that the Mr. and Mrs. Potato Head characters will still exist, names and all, but the branding on the box will say "Potato Head."
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Biden directive expands jobless aid to more unemployed
WASHINGTON (AP) - More Americans will soon be eligible for unemployment benefits under a directive issued by the Labor Department Thursday, including those who have turned down job offers because they believed the employers weren´t providing sufficient protection from the coronavirus. The measure would also expand a federal jobless aid program, established in last spring´s economic relief package, to cover workers who have lost hours or were laid off because of the pandemic. It would also cover school employees who lose jobs or work hours because of school closings.
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Game on, again: GameStop surges and no one truly knows why
NEW YORK (AP) - After weeks of going dormant, shares of GameStop have suddenly shot higher again, jumping 75% in the last hour of trading Wednesday and another nearly 19% Thursday. It´s reminiscent of the shocking 1,625% surge for GameStop in January, when bands of smaller-pocketed and novice investors helped trigger a supernova for the stock of the struggling video game retailer. Last month´s surge underscored questions about whether the broad market is in a bubble. No clear reason seems to be behind this most recent move, leaving market observers to grasp at what little news is out there.
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US jobless claims at 730K, still high but fewest in 3 months
WASHINGTON (AP) - The number of Americans seeking unemployment benefits fell sharply last week in a sign that layoffs may have eased, though claims remain at a historically high level. Applications for jobless aid declined 111,000 from the previous week to a seasonally adjusted 730,000, the Labor Department said Thursday. It is the lowest figure since late November and the biggest one-week decline since August. Still, before the virus erupted in the United States last March, weekly applications for unemployment benefits had never topped 700,000.
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Biden´s trade pick vows to work more closely with allies
WASHINGTON (AP) - President Joe Biden´s pick to be the top U.S. trade envoy promised to work with America´s allies to combat China´s aggressive trade policies, indicating a break from the Trump administration´s go-it-alone approach. In a Senate confirmation hearing hearing Thursday, Katherine Tai, Biden´s choice for U.S. trade representative, promised to "prioritize rebuilding our international alliances and partnerships, and re-engaging with international institutions.´´
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AT&T spinning off DirecTV after losing millions of customers
DALLAS (AP) - AT&T is spinning off its DirecTV into a new company for a fraction of the $48.5 billion it paid for the satellite TV service in 2015. DirecTV has lost millions of customers on AT&T´s watch. Private equity firm TPG will own 30% of the new business; AT&T will hold the rest. AT&T launched streaming service HBO Max last year and has focused on building that business, upgrading its wireless network with next-generation 5G technology and building more fiber-optic internet infrastructure. AT&T will receive $7.8 billion in cash from the deal, and will use the proceeds to pay down debt.
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McPlant and more: Beyond Meat inks McDonald´s, Yum deals
EL SEGUNDO, Calif. (AP) - Plant-based food company Beyond Meat will be partnering with several fast food chains in the coming years to expand to products that could eventually include a plant-based burger, chalupa or toppings on a stuffed-crust pizza. Beyond Meat on Thursday announced distribution agreements with McDonald´s as well as Yum Brands, the parent company of KFC, Taco Bell and Pizza Hut. The California company says will develop plant-based products for all the restaurants, with exclusive menu items for each brand.
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The S&P 500 index fell 96.09 points, or 2.4%, to 3,829.34. The Dow Jones Industrial Average lost 559.85 points, or 1.8%, to 31,402.01. The Nasdaq slid 478.54 points to 13,119.43. The Russell 2000 index of smaller company stocks lost 84.21 points, or 3.7%, to 2,200.17.
