The daily business briefing: July 1, 2022

A factory in Carteret, New Jersey, emits smoke.

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1. Supreme Court limits EPA authority to control greenhouse gas emissions
2. FCC authorizes SpaceX to connect vehicles to Starlink internet
3. Report: Kohl's ends sale talks with Franchise Group
4. Airlines face new test with July 4th travel rush
5. Stocks edge down after worst first-half since 1970

published 1 July 2022

1. Supreme Court limits EPA authority to control greenhouse gas emissions

The Supreme Court on Thursday limited the Environmental Protection Agency's authority to use the Clean Air Act to regulate greenhouse gas emissions from power plants as part of the government's efforts to fight climate change. The ruling was a major setback for the Biden administration's push to replace coal-burning plants with cleaner energy sources. Capping carbon dioxide emissions to transition away from coal power "may be a sensible 'solution to the crisis of the day,'" but it's up to Congress, not the EPA, to make "a decision of such magnitude," Chief Justice John Roberts wrote for the court's 6-3 conservative majority. In her dissent, Justice Elena Kagan said the ruling "strips the Environmental Protection Agency of the power Congress gave it."

The Federal Communications Commission on Thursday gave SpaceX permission to link vehicles, from airplanes to boats and RVs, to its Starlink satellite internet service. The FCC said the decision "will expand the range of broadband capabilities to meet the growing user demands that now require connectivity while on the move." SpaceX has been sending a fleet of Starlink satellites into low orbit with its Falcon 9 rockets. It had more than 400,000 subscribers worldwide as of June. Delta Air Lines has tested Starlink, and Hawaiian Airlines said in April it would add the service on some flights soon.

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Kohl's has called off discussions to sell its operations to Vitamin Shoppe owner Franchise Group, CNBC reported Thursday, citing two people familiar with the matter. The department store chain's shares fell 15 percent in premarket trading Friday following the report. Kohl's and Franchise Group didn't immediately respond to CNBC requests for comment. Kohl's has faced pressure from activist investors to explore a sale as its stock falls and sales decline. Franchise Group reportedly had been considering lowering its offer toward $50 per share from about $60 per share. Kohl's stock price is down about 28 percent this year.

Airlines that have struggled with staffing shortages and canceled or delayed flights over the last two holidays face a fresh test of their ability to handle crowds as travelers flock to airports over the Fourth of July weekend. Air travel has rebounded to near-pre-pandemic levels. Thunderstorms caused sporadic disruptions in the days before the weekend rush. American Airlines had to scrap 8 percent of its flights on Tuesday and Wednesday, according to FlightAware. United Airlines canceled 4 percent. Travelers who plan to drive will face near-record fuel prices. The nationwide average gas price hit a nominal all-time high of $5.02 per gallon in mid-June, and was $4.86 a gallon on Thursday, according to AAA.

U.S. stock futures slipped early Friday after the S&P 500 capped its worst first-half performance since 1970 with one last day of big losses. High inflation and concerns about rising interest rates are fueling ongoing volatility. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.2 percent at 6:30 a.m. ET. Nasdaq futures were down 0.3 percent. The Dow and the S&P 500 fell 0.8 percent and 0.9 percent, respectively, on Thursday. The tech-heavy Nasdaq dropped 1.3 percent. The S&P 500 fell 20.6 percent in the first six months of the year, including more than 16 percent in the second quarter. The Nasdaq plunged 22.4 percent in the quarter, its worst quarterly drop since 2008.

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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.