Rally stalls as credit firm downgrades Portugal
NEW YORK -- The first week of July is off to a much slower start than the last week of June, when stocks had their biggest gains in two years.
Major indexes were mixed for much of the day Tuesday but dipped in afternoon trading after Moody's downgraded Portugal's debt to "junk." The credit-ratings agency cited concerns that Portugal will not be able to meet targets to reduce its deficit due to the "formidable challenges" the country is facing in cutting spending.
Lawsuit: GM did not fix thousands of Impalas
DETROIT -- A lawsuit claims General Motors Co. treated the police better than it did average citizens when taking care of a defective part in 2007 and 2008 Chevrolet Impalas.
The lawsuit alleges that Impalas from the two model years have defective spindle rods, which connect the suspension to the rear wheels. The defect causes the wheels to misalign, which makes the tires wear out faster. The tires could also wear out unevenly, increasing the risk of a blowout.
GM fixed the part on police versions of the Impala three years ago but didn't correct the same problem in hundreds of thousands of other Impalas, according to the lawsuit filed last week in Detroit.
GM sold a total of 423,000 Impalas from those model years. Spokesman Alan Adler said 23,800 of those cars became police models and confirmed that GM issued a service bulletin for police cars from 2007 and 2008 because of rear suspension problems. But he said GM wouldn't comment further.
Airplanes fuel increase in factory orders in May
WASHINGTON -- Businesses requested more airplanes, autos, and oil-drilling equipment in May. The jump in factory orders after a sluggish spring suggests supply disruptions stemming from the Japan crisis are fading.
Factory orders rose 0.8 percent in May, the Commerce Department said Tuesday. That followed a downwardly revised drop of 0.9 percent in April.
The increase pushed factory orders to $445.3 billion. That's almost 32 percent higher than the low point during the recession, reached in March 2009. Much of the increase was driven by a 36.5 percent increase in orders for aircraft, a volatile category. But there also were signs of strength in areas that had slowed sharply in the previous month.
Maker of blood-testing equipment to be sold
NEW YORK -- Blood-testing equipment maker Immucor Inc. said Tuesday it agreed to be acquired by TPG Capital in a deal worth $1.97 billion, or $27 per share in cash.
Immucor said its board unanimously approved the deal, and the Norcross, Ga., company expects the sale to close in the second half of 2011.
TPG Capital, a private investment firm, is offering a 30 percent premium to the most recent closing price of Immucor shares. The deal requires regulatory approval and the support of the owners of at least 84 percent of Immucor's shares. TPG will start a tender offer for Immucor shares by July 15.