Stocks rise after Fed's signals
NEW YORK — Stocks brushed off a muted start on Wall Street and notched modest gains Wednesday after the Federal Reserve reaffirmed that it is prepared to cut interest rates if needed to shield the U.S. economy from trade conflicts or other threats.
The reaction to the Fed's mid-afternoon statement was more pronounced in the bond market, where the yield on the 10-year Treasury note slid to 2.03%, its lowest level since November 2016. The move signals that bond traders see an increased likelihood that the Fed will lower rates. Investors are betting on at least one interest rate cut this year, possibly as early as July.
The latest gain extended the market's winning streak to a third day, adding to a June rebound in stocks after a dismal sell-off in May.
U.S. stock indexes spent much of the day wavering between small gains and losses as investors waited for the Fed to deliver its update on interest rates following a two-day meeting of policymakers.
Boeing to move space unit HQ
TITUSVILLE, Fla. — Boeing says it is moving the headquarters of its space and launch division to Florida.
The company said Tuesday that it was moving the space division headquarters from Arlington, Va., to Titusville on Florida's Space Coast.
Boeing official Leanne Caret says it makes sense to move Boeing's space headquarters to Florida, where so much space history has taken place and the company is working on several future launches.
Florida's Space Coast is home to the Kennedy Space Center, Cape Canaveral Air Force Station and Patrick Air Force Base.
Company officials say the move won't affect space operations in other states, such as Alabama, California, Colorado, Louisiana and Texas.
Boeing spokesman Daniel Beck says the company isn't saying how many jobs will move to Florida, but the number will be small.
US CEO gifts $189M for AI ethics
LONDON — A Wall Street billionaire has given Oxford University $188.6 million for a new institute that will study the ethical implications of artificial intelligence and computing technologies.
The donation from Stephen Schwarzman, CEO of the private equity firm Blackstone, will also fund a center to house all of the university's humanities subjects in a single space to encourage collaborative study.
"AI is going to be the fourth revolution, and it is going to impact jobs, excellence, efficiency," Schwarzman told the BBC. "It is a force for amazing good and also a potential force for not good."
Schwarzman compared the rise of AI to the rise of the internet, which was launched by computer scientists who thought it was "cool."
"And parts of it were cool — interconnectedness, globally the ability to communicate, it is pretty amazing," he said. "What they forgot were all the negatives, this inability to control cyber bullying, lack of freedom of speech — all kinds of negative things."
YouTube probe fixed on kids' videos
SAN FRANCISCO — The Federal Trade Commission is in the late stages of an investigation into how Google's YouTube handles children's videos, a probe prompted by complaints that the company failed to protect kids who used the service and improperly collected their data.
That's according to a report Wednesday in The Washington Post, which said the company faces a possible fine and that YouTube executives have accelerated internal talks about possible changes in how the service recommends videos to viewers. Reports this week said YouTube is also considering moving all kids' content into a separate app.
The FTC had no comment. Google spokeswoman Andrea Faville said the company had no comment on the Post report. She added in a statement that the company considers "lots of ideas for improving YouTube."
Court revives Blue Bell investor suit
DOVER, Del. — Delaware's Supreme Court has overturned the dismissal of a shareholder lawsuit against one the country's largest ice cream makers after a 2015 listeria outbreak that killed three people.
The court ruled Tuesday that a judge erred because the plaintiff had not demanded that the board of Blue Bell Creameries take action itself before the lawsuit was filed. That demand requirement can be waived if a plaintiff raises reasonable doubts about the impartiality of directors because of close ties to management. Former CEO Paul Kruse is a defendant in the suit.
The court also said the lawsuit adequately alleges that the board at Blue Bell failed to implement any system to monitor food safety performance or compliance.
The Brenham, Texas, company suffered significant financial losses due to the outbreak.