The daily business briefing: August 16, 2016

1. China launches 'hack-proof' communications satellite

China said Tuesday that it had launched the world's first quantum satellite in a bid to establish "hack-proof" communications between space and Earth, the official Xinhua news agency reported. Xinhua said that "Quantum communication boasts ultra-high security as a quantum photon can neither be separated nor duplicated," making it "impossible to wiretap, intercept, or crack the information transmitted through it." The satellite will let Beijing communicate securely with Urumqi, the capital of a region facing an Islamist insurgency.

Reuters The Guardian

2. U.S. stocks push farther into record territory as oil prices rise

U.S. stocks surged to simultaneous record highs on Monday for the second time in a week as rising oil prices fueled investor optimism, although futures edged lower before trading Tuesday. The S&P 500 and Nasdaq composite indexes broke intraday highs early in the day, and the Dow Jones Industrial Average rose past its old record of 18,638.34, with commodity shares leading the climb. All of the records were set just last week. "The fundamental picture has been mixed, so it's a little bit hard to look to that as the reason for what seems to be a solid rally," said Bruce McCain, chief investment strategist at Key Private Bank.

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3. Aetna becomes latest insurer to drop some ObamaCare markets

Health insurer Aetna said Monday that it would stop selling individual ObamaCare plans next year in all but four of the 15 states where it now participates in the program. The move follows similar retreats by other major insurers, who have cited mounting losses in government-run health insurance exchanges. Aetna will continue selling ObamaCare plans in Iowa, Delaware, Nebraska, and Virginia.

Reuters

4. AIG agrees to sell mortgage-guarantee unit to Arch

American International has reached a deal to sell its mortgage-guarantee unit for about $3.4 billion to Bermuda-based insurer Arch Capital Group. AIG last year unveiled a plan to hold an initial public offering of stock in the unit, United Guaranty, although it planned to keep a majority stake. Selling it instead will let the beleaguered insurer speed up progress toward its goal of returning $25 billion to impatient stockholders.

The Wall Street Journal Bloomberg

5. Buffett increases stake in Apple

Warren Buffett’s Berkshire Hathaway has increased its stake in Apple by 50 percent, adding 5.4 million shares to increase its holding to 15.2 million shares, according to papers filed with federal regulators on Monday. The stake is worth nearly $1.5 billion. Berkshire also has sold off some of its Walmart stock, cutting its position by 27 percent to $2.9 billion. Apple shares fell earlier this year on weak iPhone sales, but the stock has gained more than 21 percent since mid-May, the month when Berkshire Hathaway first disclosed its investment in the company.

Barron's