The daily business briefing: April 18, 2023

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1. China's economy expanded more than expected after COVID restrictions lifted
2. David's Bridal files for bankruptcy
3. Just 10 EVs qualify for full subsidy with new battery-sourcing rule
4. SpaceX delays Starship launch
5. Stock futures rise ahead of more key earnings reports

published 18 April 2023

1. China's economy expanded more than expected after COVID restrictions lifted

China's National Bureau of Statistics reported Tuesday that the Chinese economy expanded 4.5 percent in the first quarter compared to the same period in 2022 as the world's second biggest economy bounced back after lifting its strict "zero-COVID" lockdowns. Economists surveyed by The Wall Street Journal had expected just 4.0 percent growth. China's economy grew by 2.2 percent compared to the previous quarter, when a surge of COVID infections that hit after the restrictions were lifted in December dented activity in the end of the year. The growth came as Chinese consumers resumed shopping, eating in restaurants, and traveling after Beijing abruptly ended the tight restrictions, which had aimed to prevent coronavirus infections.

David's Bridal filed for bankruptcy protection on Monday. The popular wedding dress retailer said it would keep its stores and website operating as it restructured its finances. The news came days after the company announced that it would lay off 9,236 of its 10,000 workers in three waves from April to August. The company said Monday it had started the layoffs. CEO James Marcum said in a statement that the company had "successfully modernized our marketing and customer interaction processes" but "our business continues to be challenged by the post-COVID environment and uncertain economic conditions." He said the company, which has $257 million in debt, is trying to find "a buyer who can continue to operate our business going forward."

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The Biden administration on Monday released the list of electric and plug-in hybrid vehicles that will qualify for full $7,500 federal tax credits under tighter new rules on U.S.-battery sourcing. The list includes just 10 vehicles ranging in price from $55,000 to $80,000. The vehicles are: Chrysler Pacifica and Lincoln Aviator Grand Touring (both plug-in hybrids), and the Ford F-150 Lightning, Chevrolet Bolt, Cadillac Lyriq, Chevrolet Blazer, Chevrolet Silverado, Chevrolet Equinox, Tesla Model 3, and Tesla Model Y (EVs). The new criteria will take effect Tuesday under the Democrats' marquee climate law, the Inflation Reduction Act. About twice as many vehicles qualified for the full credit at the beginning of the year. Seven Tesla, Ford, and Stellantis vehicles will qualify for half credits.

SpaceX on Monday delayed a key test launch of its next-generation Starship rocket for at least two days. Engineers were unable to fix a "pressurization issue" in the final launch preparations, leading to the call to postpone the launch just 10 minutes before it was supposed to lift off. The massive Starship rocket is the one that Elon Musk's space company plans to use to send astronauts to the moon and, at some point, to Mars. SpaceX had hoped to start this uncrewed mission from a SpaceX facility in Boca Chica, Texas. Musk sought to temper expectations the day before the scheduled launch, saying his primary goal on this test was "just don't blow up the launchpad."

U.S. stock futures rose early Tuesday ahead of more big corporate earnings reports. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.4 percent at 7 a.m. ET. Nasdaq futures were up 0.6 percent. Bank of America and Johnson & Johnson shares gained after they reported better-than-expected earnings. Investors also are digesting better-than-expected first-quarter economic growth in China and mixed Monday earnings reports. State Street shares fell after disappointing results, while Charles Schwab shares surged after it started a week of bank earnings with stronger-than-expected quarterly profit. The brokerage giant's stock has fallen nearly 40 percent since Silicon Valley Bank and Signature Bank collapsed and fueled fears of banking industry troubles.

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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.