Stocks shake off new trade tensions
NEW YORK — Wall Street capped a turbulent week with a late-day rally Friday after shaking off an early slump triggered by the latest escalation in the trade war between the U.S. and China.
The market fell sharply in the early going after the U.S. raised tariffs on $200 billion worth of Chinese goods when negotiators failed to reach a deal. Hours later, remarks from President Donald Trump and Treasury Secretary Steven Mnuchin gave investors reason for optimism.
First, Mnuchin told CNBC that the trade talks had been "constructive," which spurred the market's rebound. Then, in a late-afternoon tweet, Trump suggested the tariffs could be removed and that the trade talks "will continue."
"Nobody wants to sell too aggressively just in case things get settled and the market rallies," said J.J. Kinahan, chief market strategist for TD Ameritrade. "As long as they're still talking there's a chance that this gets done."
Uber IPO hits potholes on 1st day
NEW YORK — After much hype leading up to the largest initial public offering in five years, Uber hit a few potholes on its first day of trading, closing down 8% and reflecting lingering doubts about its future prospects for profitability.
The ride-hailing company injected investors with a dose of reality right out of the gate, trading at $42 a share Friday — or nearly 7% below its IPO price of $45 on an already volatile day for the markets. Its shares closed at $41.57.
Despite the rocky debut, Uber CEO Dara Khosrowshahi said he was thrilled to complete the IPO, adding that the $8.1 billion that Uber raised in the process would be crucial to its future growth plans.
"It's a great moment for the company and all the employees who have been working so hard to get here," Khosrowshahi said in an interview with The Associated Press. "It was a tough week to go public, but we got it done."
Uber's IPO price was lower than initially expected, and the caution may have been driven by escalating doubts about the ability of ride-hailing services to make money since Uber's main rival, Lyft, went public six weeks ago.
Consumer prices rose by 0.3%
WASHINGTON — U.S. consumer prices increased 0.3% in April, led by more expensive gasoline, rents and appliances.
The Labor Department said Friday that the consumer price index climbed 2% in the year ending in April. Excluding the volatile food and energy categories, core prices increased 0.1% last month and 2.1% from a year ago.
The figures suggest inflation is mostly subdued, despite solid economic growth and rising wages, which typically push up prices.
Big US coal firm is bankrupt
GILLETTE, Wyo. — The nation's third-largest coal company by production volume filed for bankruptcy Friday as utility companies increasingly turn to gas-fired generation and renewable energy for electricity.
Gillette-based Cloud Peak Energy filed for reorganization in U.S. Bankruptcy Court in Delaware. The move was widely expected since at least March, when the company received the first of several extensions to make a $1.8 million loan payment. The latest extension expired Friday.
Cloud Peak owns and operates three mines in the Powder River Basin: the Antelope and Cordero Rojo mines in Wyoming and the Spring Creek Mine in Montana.
The mines shipped 50 million tons of coal in 2018. Cloud Peak officials say the mines will remain in operation during the bankruptcy process.
Steel merger in Europe derailed
FRANKFURT, Germany — German steelmaker Thyssenkrupp said Friday it would cut some 6,000 jobs and restructure its businesses after saying that it expects European antitrust regulators to block plans for a joint venture with India's Tata Steel.
CEO Guido Kerkhoff said 4,000 of the lost jobs would be in Germany, the dpa news agency reported. He said the rejection of the joint venture was "a hard blow" for the company's 27,000 steelworkers.
Thyssenkrupp said in a statement that the companies had offered changes to address the European Commission's concerns but that hadn't been enough.
The Essen-based company said further concessions would have weakened the venture to such an extent that it would have no longer made business sense.
Thyssenkrupp responded to the rebuff by announcing a restructuring to increase profits. On top of the job reductions, management proposed to hold a share offering for its elevator business. The company also said it would abandon a plan to split itself into two companies that would hold shares in each other.