Stock Market News: Debt ceiling looms, Ford-Tesla partnership, Costco talks crime

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BofA must face class action over 2020 benefit card fraud

Symbol Price Change %Change
BAC $28.17 0.07 0.25

Bank of America must face cardholder allegations that it bungled its response to unauthorized transactions on unemployment and disability benefits cards in California during the pandemic, a San Diego judge ruled on Thursday.

U.S. District Judge Larry Alan Burns said benefits recipients can move forward with a proposed class action lawsuit claiming the bank violated state law by issuing cards that lacked standard security measures to millions of Californians.

The cardholders also claim Bank of America broke federal law by failing to investigate fraud claims or summarily freezing tens of thousands of accounts.

Treasury’s Adeyemo sees no ability to ‘triage’ payments without debt limit hike

Deputy U.S. Treasury Secretary Wally Adeyemo said on Friday that the U.S. government does not have the capability to “triage” payment priorities if the debt ceiling is not raised, adding that invoking the 14th amendment to issue debt will not solve the government’s challenges.

Speaking on CNN as the White House and congressional Republicans
neared an agreement that would cap spending and raise the borrowing cap, Adeyemo said: “I don’t have any confidence that we have the ability to be able to do a type of prioritization that will mean that all seniors, all veterans, all Americans get paid.”

Embraer exec sees no sales hit from Pratt & Whitney engine woes

Symbol Price Change %Change
ERJ $14.31 0.33 2.36
RTX $93.12 -0.54 -0.58

 The head of Brazilian Embraer’s planemaking division dismissed concerns that problems at engine supplier Pratt & Whitney would discourage airlines from placing orders and hinted at some order announcements at the upcoming Paris Airshow.

Pratt & Whitney, owned by Raytheon, has been facing problems with the durability of its latest engines flying on Embraer E2 jets, the
Airbus A220
and some A320neo-family jets, but Embraer says it has only a quarter of the problems seen elsewhere with 12 of its planes currently grounded.

“We believe the issues that we have today are manageable, but we also believe that for new campaigns, the engines that those customers will get will have…improved technology,” said Arjan Meijer, chief executive of Embraer Commercial Aviation.

“We don’t have customers not wanting airplanes because of this topic,” he added.

Space race

Billionaires Elon Musk, Richard Branson and Jeff Bezos have been busy in the race to dominate space.

Costco on crime

Costco Wholesale Corp.



Retailers including Walmart, Target, Footlocker and Kohl’s are trying to battle back a crime surge, but Costco says it has avoided the peril of other retailers.

Elon Musk’s brain company

Another one of Elon Musk’s company
is making waves, NeuraLink won FDA approval for human clinical trials.