Closing Bell
The major U.S. indices closed Tuesday's session on a high note, shrugging off a new round of trade turmoil as the U.S. and China exchange threats over trade pacts.
The Dow Jones Industrial Average rose 0.71%, or 185 points to 26,247, while the S&P 500 gained 0.54%, or 16 points to 2,904, and the Nasdaq jumped 0.76%, or 60 points to 7,956.
Facebook, Banks Went Back and Forth Over User Data
Facebook (FB) has spent years debating with financial firms over how much access the social media company should have to financial information that was transferred over its Messenger platform, according to a Wall Street Journal report.
The Journal reports that as recently as last year the company haggled with financial firms for the ability to use customer data for targeted advertising purposes. Several of those firms capitulated and allowed limited access to certain aspects of the data.
Facebook came under scrutiny earlier this year after it was revealed that it allowed a political action group to harvest the data of tens of millions of users during the 2016 election season.
VW Believes it Can Sell 10 Million Electric Cars on New Tech Platform
German car maker Volkswagen (VLKAY) believes it will be able to sell 10 million electric vehicles as part of its "Electric For All" campaign that was launched this week. This view is based on the company's modular electric drive matrix technology platform that it developed specifically for electric vehicles.
The company plans to begin production of the Volkswagen ID, the world's first series vehicle based on the platform, at the end of 2019.
Volkswagen says the ID will be the first fully connected electric vehicle "that millions of people will be able to afford."
Tesla Tanks as U.S. Opens Criminal Probe Into Musk's Comments
Shares of Tesla (TSLA) are down 6.5% Tuesday after Bloomberg reported that the United States is opening up a criminal probe into the company over CEO Elon Musk's tweet that he was considering taking the company private.
Musk has since backtracked, after initially claiming that funding had been secured to buy out investors.
On August 7, Musk tweeted that he was thinking about taking his company private at $420, sending the stock soaring 11% to a near all-time high of $387.46. Since then, the stock has come back down to earth and even lost ground, wiping out more than $21 billion in market capitalization from the company.
FedEx Chief Is Fed Up With Trade War
FedEx (FDX) Chief Executive Fred Smith isn't happy with the the President's U.S.-initiated trade war with China, telling analysts Monday that the tiff between the two countries "is worrisome to everyone."
"History is very, very clear that countries that pursue the most open markets are the ones that prosper the most and whose citizens' income increases the most. Mercantilism does not work," Smith said.
Smith's comments came after President Trump announced a new round of tariffs on about $200 billion of Chinese goods. The 10% tax will take effect on September 24 and will increase to 25% by the year's end.
FedEx shares are down more than 4% Tuesday.
Visa, Mastercard Reach $6.2 Billion Settlement Over Card Fees
Visa (V) and Mastercard (MC) have agreed to pay $6.2 billion to end a lawsuit brought by merchants over card fees in what is the largest-ever class action settlement of an antitrust case.
Visa and Mastercard previously set aside $5.3 billion with the court to settle the claims. Merchants accused the credit card companies of violating antitrust laws by illegally inflating the swipe fees that merchants pay on every purchase that is made by credit or debit cards.
"After years of thoughtful negotiation, we are pleased to be able to reach this agreement and move forward in our partnership with merchants to provide consumers convenient, reliable, secure ways to pay," Kelly Mahon Tullier, Visa's general counsel, said in a statement.
Visa and Mastercard will use shares owned by banks to make part of the payments.
Aramark Nets $300 Million From Sale of Health Technology Business
Shares of Aramark (ARMK) are up 0.3% Tuesday morning after the company announced that it is selling Healthcare Technologies to TRIMEDX for $300 million.
The company was acquired by Aramark in 2001 and has 1,400 employees. The sale is expected to close in the fourth quarter.
"Today's action is another demonstration of the clear and focused strategy we are following that has substantially elevated our operating performance and is driving Aramark's success," said Aramark CEO Eric J. Foss.
Premarket
U.S. futures are showing slight gains ahead of Tuesday's open even as the trade war between the U.S. and China heats up after the Asian country said that it would retaliate against the latest rounds of tariffs imposed by the Trump administration.
Dow futures are gaining 0.22%, indicating an open 58 points higher, while S&P futures rise 0.14%, indicating an open 4 points higher, and Nasdaq futures are rising 0.08%, indicating an open 6 points higher.
World markets are also higher across the board. In Asia, the Shanghai Composite jumped 1.82%, whille the Hang Seng rose 0.56%, and the Nikkei gained 1.41%.
In Europe, the CAC 40, DAX, and FTSE 100 gained 0.2%, 0.16%, and 0.08% respectively, with about four hours left in trading.
