Morning Money Memo…
Any doubts investors had about Tesla Motors appear to be in the rear view mirror. Company shares ended yesterday at nearly $197, a new high. Tesla staged a comeback since last autumn when a series of car fires sent its share price down sharply. CEO Leon Musk argued fires were far less likely to happen in Teslas than in conventional gas powered autos. Tesla is still a relatively small player in the auto industry with fewer than 7,000 vehicle sales last quarter. But the company’s book value of more than $22 billion reflects a very positive view Wall Street has about the its potential.
Stock market investors will be listening very closely to remarks by the new Chair of the Federal Reserve Janet Yellen. She will make her first Capitol Hill appearance today before a House panel. Yellen will deliver the Fed’s twice-annual report to Congress. She will face questions about the economy, the job market and the Fed’s stimulus policy.
Kraft is removing artificial preservatives from its most popular Singles cheese product. The change is seen as the latest sign that companies are tweaking recipes as food labels come under greater scrutiny. The change affects Kraft’s full fat American and white American Singles brand. Sorbic acid is being replaced by natamycin, which Kraft says is a “natural mold inhibitor.”
General Motors says new CEO Mary Barra will get a pay package worth $14.4 million for 2014. In recent years the average pay of top executives has been soaring.
A multi-agency government task force looking into cyber attacks against retailers says it has not come across evidence suggesting the attacks are a coordinated campaign to adversely affect the U.S. economy. In a two-page report, the National Cyber Investigative Joint Task Force says the global implications of the retail attacks and the economic impact to private business and individual citizens cannot be overstated.
Richard Davies Business Correspondent ABC News Radio abcnews.com Twitter: daviesnow