The daily business briefing: August 3, 2017
The Dow hits 22,000 for the first time, Tesla shares surge, and more
Dow reaches 22,000 for the first time
The Dow Jones Industrial Average reached the 22,000 mark for the first time on Wednesday with a boost from Apple, which gained 6 percent to an all-time high thanks to better-than-expected quarterly results and optimism over the next iPhone. It was the third time this year the blue-chip stock index pushed through a new 1,000-point mark. President Trump tweeted as the Dow neared the latest milestone, noting that the index "was 18,000 only six months ago." The Dow has surged by more than 3,600 points since Election Day, and for months analysts credited Trump's promises to deregulate businesses and cut taxes. The most recent jump, however, was fueled by a series of stellar quarterly earnings reports by major corporations, including Apple, Boeing, McDonald's, and Facebook.
Tesla soars after quarterly report beats expectations
Tesla shares jumped by 8 percent in after-hours trading on Wednesday after the electric car maker posted a narrower-than-expected second-quarter net loss of $336 million, up from a $293 million lost a year ago. The company's revenue nearly doubled thanks largely to deliveries of Model S sedans and Model X SUVs. Tesla's shares have gained 52 percent since the start of the year due to high hopes and high demand for the company's first mass-market car, the $35,000 Model 3 sedan. Before the earnings report, the stock struggled over concerns that Tesla could face trouble with the costly ramping up of production for the Model 3, but the company's CEO, Elon Musk, said people should have "zero concern" that Tesla will reach production of 10,000 vehicles a week by the end of 2018.
Thousands attend Amazon job fair
Amazon launched a massive job fair at nearly a dozen U.S. warehouses on Wednesday in what it said was part of an effort to hire 50,000 workers. Amazon said it collected "a record-breaking 20,000 applications," and hired thousands of people immediately to help pack and ship products for Amazon customers. Although the numbers fell significantly short of Amazon's goal, the giant online retailer said it would hire more people in coming days. Most of the jobs are full-time with entry level pay, although many candidates said they were focused on health insurance and other benefits. The hires from the job fair will count toward Amazon's goal of adding 100,000 full-time employees by mid-2018.
HBO tries to recover from cyberattack
HBO said Wednesday that it was working to assess the damage from a cyberattack by a hacker who boasted about upcoming leaks of full episodes of Ballers and written material from next week's Game of Thrones episode. In a memo to staff, CEO Richard Plepler said the company didn't think its "email system as a whole has been compromised," although a full forensic review had not been completed. The hacker or hackers claimed to have stolen 1.5 terabytes of data. HBO, a premium cable network, acknowledged the cyberattack on Monday.
Hyperloop One pod hits 192 mph in latest test run
California-based tech company Hyperloop One announced Wednesday that its vacuum-sealed pod had reached 192 miles per hour in a test conducted in Nevada over the weekend. The 1,640-foot test run more than doubled Hyperloop One's previous speed record of 70 mph set in a May test. The 28-foot-long pod uses magnetic levitation to propel itself through a track made of depressurized tubing mimicking conditions at an altitude of 200,000 feet, where resistance is reduced. Hyperloop One is aiming for a top speed of 250 mph on the test track, but it wants to be able to reach 500 mph on a planned route from Abu Dhabi to Dubai so the 100-mile trip can be completed in 12 minutes.