Stocks curb gains, Peloton falls on treadmill recall

WASHINGTON (FOXNews): U.S. stocks curbed early gains Wednesday as investors digested another round of corporate earnings, a solid ADP report with the addition of 742,000 jobs and a major recall from Peloton.

All three of the major averages bounced between losses and gains.

Peloton shares tumbled after the company, along with the U.S. Consumer Product Safety Commission, announced a recall of all its Tread+ treadmills falling the accidental death of a child.

“Consumers who have purchased either treadmill should immediately stop using it and contact Peloton for a full refund or other qualified remedy” the recall release detailed.

In earnings news, General Motors reaffirmed its full-year guidance sending the shares higher.

CEO Mary Barra, in a letter to investors, said “We are also reaffirming our guidance for the full year, and based on what we know today, we see results coming in at the higher end of the $10 billion to $11 billion EBIT-adjusted range we shared earlier this year” this despite ongoing production challenges tied to the chip shortage.

Ridesharing company Lyft, in its quarterly results, noted a boost in riders with 13.5 million, a jump of about 8%. Rival Uber reports results after the close of trading.

In other stock news, Facebook is also in focus after the social media giant upheld its ban on former President Trump.

In other economic data, the Institute for Supply Management, a gauge of activity in the services sector of the economy, expanded 62.7. A level above 60 signals expansion.

Most economic indicators point to improving conditions, but investors are worried about renewed coronavirus outbreaks and a possible uptick in inflation.

Remarks by Treasury Secretary Janet Yellen appeared to stoke those worries. Selling on Wall Street accelerated after Yellen said interest rates may have to rise to keep the economy from overheating. She later downplayed her comments during an interview with The Wall Street Journal after markets closed.

After the close of trading, attention will turn to Fox News and Fox Business parent Fox Corporation, insurer MetLife, and online payments giant PayPal.

In energy markets, benchmark U.S. crude hovered above $66 per barrel, while gold traded higher at $1,782 an ounce.