MARKETS-STOCKS/USA OPEN-GM Wall Street opens slightly lower on rate hike fears, U.S. weighs charges against GM following ignition switch recall

Record ID: 150613

  • Title: MARKETS-STOCKS/USA OPEN-GM Wall Street opens slightly lower on rate hike fears, U.S. weighs charges against GM following ignition switch recall
  • Date: 9th June 2015
  • Summary: FLINT, MICHIGAN, UNITED STATES (FILE) (REUTERS) VARIOUS OF ASSEMBLY LINE WORKERS AT GM MANUFACTURING PLANT
  • Embargoed: 24th June 2015 13:00
  • Keywords:
  • Topics: General
  • Reuters ID: LVA6K4ZUJBYN9D5D11MC0KRD8V92
  • Aspect Ratio: 16:9
  • Story Text: EDITORS NOTE: THE GENERAL MOTORS MANUFACTURING VIDEO IN SHOT #8 DOES NOT SHOW VEHICLES INVOLVED IN THE IGNITION SWITCH PROBLEMS
    U.S. stocks opened marginally lower on Tuesday (June 9) on growing speculation that the Federal Reserve could raise interest rates as soon as September.
    The Dow Jones industrial average rose 7.37 points, or 0.04 percent, to 17,773.92, the S&P 500 gained 0.94 points, or 0.05 percent, to 2,080.22 and the Nasdaq Composite dropped 6.06 points, or 0.12 percent, to 5,015.57.
    Data on Monday showed U.S. small business confidence rose to a five-month high in May, with owners expecting a solid improvement in profits, which bodes well for the economy's prospects in the months ahead.
    Investors will also keep an eye on job openings and labor turnover data for April. Job openings are expected to have increased from the previous month. The data is due at 10:00 a.m. ET (1400 GMT).
    The sell off in U.S. stocks in the past few sessions followed a series of encouraging data reports, including stronger-than-expected May jobs data on Friday, that prompted speculation of a rate hike in September, sooner than some expected.
    Federal prosecutors are weighing criminal wire fraud charges against General Motors over the company's failure to recall vehicles equipped with faulty ignition switches, the Wall Street Journal reported on Tuesday.
    Citing people familiar with the matter, the newspaper said U.S. prosecutors in New York have not made a final decision on what, if any, charges to bring and hope to reach a settlement with the automaker by the end of summer or early fall.
    GM share price was up 0.5 percent in early trading on the New York Stock Exchange, at $35 (USD) per share.
    Before the shareholder's meeting on Tuesday, GM Chief Executive Officer Mary Barra said the automaker has "cooperated fully" with prosecutors and any settlement would be "on their timeline".
    Reuters could not immediately confirm the report and representatives for the U.S. Department of Justice.
    General Motors, in a statement to the newspaper, said it is "cooperating fully" with the Justice Department.
    According to the Wall Street Journal, prosecutors have determined that the company likely hid information about the switches and made misleading statements, leading authorities to zero in on the wire fraud charges.
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