1. Manufacturing slump worsens
A key gauge of U.S. factory activity slipped in September to its weakest reading in 10 years as slowing global economic growth and the U.S.-China trade war hurt exports, according to a monthly survey released Tuesday by the Institute for Supply Management. The manufacturing purchasing managers' index registered 47.8 percent in September, its second straight month under the 50 percent threshold indicating a contraction. The new export orders index sank from 43.3 percent in August to 41 percent in September, its lowest since March 2009. "We have now tariffed our way into a manufacturing recession in the U.S. and globally," said Peter Boockvar, chief investment officer at Bleakley Advisory Group.
2. Johnson & Johnson reaches $20.4 million opioid settlement
Johnson & Johnson said Tuesday it had reached a $20.4 million proposed settlement with two Ohio counties over its role in the opioid epidemic. The proposal would allow Johnson & Johnson to avoid being involved in a trial later this month in an opioid-epidemic lawsuit against six remaining companies brought by more than 2,500 counties, cities, and Native American tribes. Johnson & Johnson would pay Cuyahoga and Summit counties $10 million in cash, along with $5 million for legal fees and $5.4 million for local non-profit groups' opioid-related programs. The deal does not include an admission of liability. In August, Johnson & Johnson was ordered to pay $572 million for aggressively marketing opioids and downplaying risks. The company denies wrongdoing and has appealed.
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3. UAW rejects latest GM offer on ending strike
The United Auto Workers union said Tuesday that it had rejected General Motors' latest offer seeking to end the union's two-week strike. The UAW's roughly 48,000 GM workers walked off the job on Sept. 16 demanding higher pay and more job security. The union said the latest offer "came up short" on wages, health care, and other issues. GM said it remained "committed to reaching an agreement that builds a stronger future for our employees and our company." The automaker also said Tuesday that the U.S. strike had forced it to shut down pickup and transmission plants in Silao, Mexico, and temporarily lay off 6,000 workers there. The strike earlier forced GM to lay off 2,000 Canadian workers and idle a Mexico engine plant.
4. UPS gets government approval to expand drone operations
United Parcel Service said Tuesday it had received federal approval for its Flight Forward drone subsidiary, making it the first company to get government certification to run limited drone delivery services. UPS now will be able to expand its delivery service at hospitals, universities, and other campus environments. Residential deliveries still won't be possible for years, but the approval gives UPS a lead in the drone-delivery race against such rivals as Amazon and Google-parent Alphabet. Flight Forward now can push its drone flights beyond pilots' line of sight, which the company said would allow it to double daily flights for its biggest customer, WakeMed Health & Hospitals in Raleigh, North Carolina.
5. Stock futures fall as weak manufacturing data worries investors
U.S. stock index futures fell early Wednesday, adding to Tuesday's losses. The Dow Jones Industrial Average and the S&P 500 were both down by 0.6 percent, and the Nasdaq dropped by 0.7 percent. All three of the main U.S. indexes fell by more than 1.1 percent on Tuesday after the release of weak manufacturing data that deepened concerns over the impact of the U.S.-China trade war. President Trump blamed declining manufacturing activity on the Federal Reserve, which he said had let the dollar get too strong and set interest rates too high. "They are their own worst enemies, they don't have a clue," Trump tweeted. "Pathetic!"
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