Dow Today – Business Highlights: Twitter’s Dorsey, Amazon do-over
Twitter CEO steps down, leaves company at a crossroads
SAN FRANCISCO (AP) — Jack Dorsey is leaving his post as Twitter’s chief executive. It’s the second time in his career that he’s stepped down from the job. This time he says it’s by choice. Dorsey offered no specific reasons for his resignation Monday beyond an abstract argument that Twitter should “break away” from its founders. He started the company and spent 16 years there in various roles. He will be succeeded by Twitter’s current chief technology officer. Dorsey was the social platform’s first CEO in 2007 until he was forced out the following year, then returned to the role in 2015.
Amazon workers in Alabama get a do-over in union election
NEW YORK (AP) — A new union election for Amazon workers in Bessemer, Alabama, will be held based on objections to the first vote that took place in April. The move is a major blow to Amazon, which had spent about a year aggressively campaigning for warehouse workers in Bessemer to reject the union, which they ultimately did by a wide margin. The rare call for a do-over was first announced by the Retail, Wholesale and Department Store Union, which spearheaded the union organizing movement. A National Labor Relations Board spokeswoman confirmed the decision.
Food, gas prices pinch families as inflation surges globally
BUDAPEST, Hungary (AP) — From appliance stores in the United States to food markets in Hungary and gas stations in Poland, rising consumer prices are putting a pinch on households and businesses worldwide. As economies recover from pandemic lockdowns, increased consumer demand, high energy costs and supply chain disruptions have fueled rising inflation. Countries like Poland and Hungary are among those feeling the price spikes most acutely. Their weakening currencies and import-focused economies make them particularly vulnerable to price hikes, and their inflation rates are among the highest in Europe. The new coronavirus variant, omicron, has raised fears of more closures that could further strain global commerce and send prices even higher.
Powell says COVID variant clouds inflation, economic outlook
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell says that the appearance of a new COVID-19 variant could slow the economy and hiring. He also says it raises uncertainty about inflation. Powell says in remarks to be delivered to the Senate Banking Committee Tuesday that he recent increase in coronavirus cases and the emergence of the omicron variant pose downside risks to employment and economic activity and increased uncertainty for inflation. He adds that the new variant could also worsen supply chain disruptions.
Stocks rise as Wall Street steadies following omicron slide
NEW YORK (AP) — The stock market steadied itself Monday following a slide last week brought on by the newest coronavirus variant. Investors are waiting for more clues about just how much damage the new strain may do to the economy. The S&P 500 ended 1.3% higher, recovering more than half its drop from Friday. Bond yields and crude oil also recovered chunks of Friday’s knee-jerk reaction to run toward safety and away from risky investments. While the market was steadier, it didn’t return to the full-on rally it had been on before the discovery of the variant now known as omicron.
GivingTuesday CEO talks about campaign, younger donors
In the past 10 years, charities have made splashy fundraising appeals and raked in billions in donations on GivingTuesday, which takes place the first Tuesday after Thanksgiving. Last year, American donors gave nearly $2.5 billion amid growing needs brought on by the COVID-19 pandemic and the nation’s racial reckoning. How much money will flood into charities this Tuesday is anyone’s guess. Asha Curran, the CEO of the organization that promotes the campaign, says people are also gearing up to participate in ways that don’t involve giving money. The AP recently talked with her about the campaign, younger donors and other things.
Shoppers are back in store, online, but virus impact lingers
NEW YORK (AP) — Americans are spending freely and going back to store shopping, knocking out some of the momentum in online sales from last year when Americans were making many of their purchases exclusively via the internet. Shopper traffic roared back on Black Friday, but it was still below pre-pandemic levels in part because retailers spread out big deals starting in October. The early buying also is expected to take a bite out of online sales on Monday, also known as Cyber Monday. Still, Black Friday is expected to once again be the busiest shopping day of the year, while Cyber Monday should also be the year’s biggest online spending day.
Millions of German state employees to get raise, COVID bonus
BERLIN (AP) — About 3.5 million state-level employees and civil servants in Germany will receive a 2.8% raise and a tax-free COVID-19 bonus of about $1,470 next year. The agreement announced by two unions Monday also will see higher raises and hazard pay for workers in some medical and care professions and a tax-free bonus of 650 euros for trainees and interns. The deal between the unions and most of Germany’s 16 states follows a series of strikes particularly in the health care sector. The agreement is valid for two years. It applies to public hospitals, schools, police, fire services and bureaucrats in all states except Hesse, where a similar agreement was reached last month.
The S&P 500 rose 60.65 points, or 1.3%, to 4,655.27. The Dow Jones Industrial Average gained 236.60 points, or 0.7%, to 35,135.94. The Nasdaq added 291.18 points, or 1.9%, to 15,782.83. The Russell 2000 index of smaller companies fell 3.96 points, or 0.2%, to 2,241.98