The daily business briefing: June 7, 2016

Federal Reserve Chair Janet Yellen speaks about the economy

(Image credit: Jessica Kourkounis/Getty Images)

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1. Yellen's take on the economy soothes investors
2. BuzzFeed scraps GOP ad deal over Trump's controversial remarks
3. Valeant cuts guidance again
4. General Mills launching its first new cereal brand since 2001
5. Playboy finds buyer for Playboy Mansion

last updated 7 June 2016

1. Yellen's take on the economy soothes investors

U.S. stocks jumped on Monday after Federal Reserve Chair Janet Yellen gave a speech downplaying Friday's disappointing jobs report, and saying the Fed still might raise interest rates soon. Yellen said the employment data were "concerning," but increases in employment, household incomes, and consumer confidence together indicate that the economy is improving. The S&P 500 index gained 10.28 points or 0.5 percent to end Monday's trading at 2,109.41, its best close of the year. European stocks also rose early Tuesday.

BuzzFeed told employees on Monday that it was terminating a deal to run Republican National Committee ads in the fall due to the controversial rhetoric of the party's presumptive presidential nominee, Donald Trump. "The Trump campaign is directly opposed to the freedoms of our employees in the United States and around the world and in some cases, such as his proposed ban on international travel for Muslims, would make it impossible for our employees to do their jobs," the company said. The deal was worth $1.3 million.

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Valeant Pharmaceuticals has made another sharp cut to its guidance in the latest sign of trouble as the Canadian drug maker tries to bounce back from what it called a "significant disruption." The company said it now expects earnings per share up to $7 this year, down from its previous guidance of up to $9.50. Valeant's stock has plunged by nearly 90 percent since its August peak as it faced concerns over investigations by Congress, accounting practices, and a reputation for buying drugs and hiking their prices.

General Mills announced Monday that it is releasing its first new cereal brand in 15 years — Tiny Toast — this month. The cereal, which will come in blueberry and strawberry varieties, will be free of high fructose corn syrup, and artificial flavors and colors. The company makes popular brands such as Cheerios and Cinnamon Toast Crunch. Its new offering is appearing after a five-year stretch when cereal sales declined by 5 percent.

The Playboy Mansion is under contract to be sold, a Playboy Enterprises spokesman said Monday. The famed, 20,000-square-foot Los Angeles home of Playboy founder Hugh Hefner was listed earlier this year for $200 million. Playboy bought the property in 1971 for $1.1 million, then the highest real estate price in L.A.'s history. The mansion, with its famous Playboy grotto and free-form swimming pool, was the scene of Hefner's legendary parties and the symbol of his men's magazine and entertainment empire. The buyer is Daren Metropoulos, a private equity executive.

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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.