S&P 500 briefly sets record on gains
The S&P 500 index briefly traded at an all-time high Tuesday just as the U.S. stock market’s bull run came closer to becoming the longest on record. The market’s benchmark index eked out a slight gain, closing a little below the high mark it set in January. The S&P 500 rose 5.91 points, or 0.2 percent, to 2,862.96. The Dow Jones Industrial Average gained 63.60 points, or 0.2 percent, to 25,822.29. The Nasdaq composite added 38.17 points, or 0.5 percent, to 7,859.17. The Russell 2000 picked up 19.35 points, or 1.1 percent, to 1,718.05. Its last all-time high was set June 20. Shortly before noon Central Time, the S&P 500 briefly crossed above its latest closing high of 2,872 set on Jan. 26.
Brexit negotiators signal optimism
British and European Union negotiators expressed cautious optimism Tuesday that they would reach a deal to prevent a disorderly U.K. exit from the bloc, saying talks will be intensified and take place “continuously” over the next few crucial months. After meeting U.K. Brexit Secretary Dominic Raab in Brussels, chief E.U. negotiator Michel Barnier said differences remained between the two sides on future economic relations and maintaining an open border between E.U. member Ireland and the U.K.’s Northern Ireland. Raab said there were “significant” issues to overcome, but that if both sides showed ambition and pragmatism, an agreement could be reached by October. That’s the deadline the two sides have set themselves for a deal on divorce terms and the outlines of future trade.
Greek ferry crews urged to halt strike plan
Greek ferry companies are urging crews to call off a planned Sept. 3 strike, saying it will leave nearly 200,000 travelers stranded during the busy tourism season with no alternative means of transport. The PNO seamen’s federation is seeking salary increases and tax breaks. PNO has threatened to extend its 24-hour strike, which will affect all routes to Greek islands including popular destinations such as Mykonos. Tourism is a key earner in Greece, with record arrivals expected this year.
Study: CEOs needing a raise turn to layoffs
If your boss thinks he or she is underpaid, it may be time to worry. A new study, led by researchers at the Rutgers School of Management and Labor Relations, finds that CEOs who are paid less than their peers are significantly more likely to order layoffs. Among firms that engaged in layoffs during the study period, the average CEO eliminated 1,200 jobs and received $600,000 in additional compensation the next year, the study found. “Given the perception that layoffs can increase firm performance, we argue that CEOs paid below their peers are likely to use layoffs as a means for increasing their own pay,” said Scott Bentley, an assistant professor at Binghamton University who led the study. “Research suggests CEOs view compensation as a symbol of prestige and status. Even with a seven or eight-figure salary, they might feel slighted if they are earning less than executives at other firms.”