Trending Market News Tuesday: Amazon Builds in Detroit

Amazon will build a $400 million 3.8 million square foot distribution distribution center on the Michigan State Fairgrounds.
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The Dow and S&P turned negative Tuesday as it was losing steam in the afternoon trading. A volatile Nasdaq was trading in the red during the afternoon session as tech stocks were falling.

The Dow gained 0.9% to 28,049, while the S&P rose 0.3% and the Nasdaq rose 0.45%.  

Germans Stick to Cash During Pandemic 

While contactless purchasing has risen in Germany since the start of the coronavirus pandemic, cash still makes up about 75% of the country's transactions, according to the German Association of Money and Bond Services.

The Bundesbank, Germany's central bank, told NPR that it issued 17 billion more euros notes and coins in March than it did the previous months when it averaged between 3 billion and 5 billion euro notes. 

Small Business Is Silently Dying by the Thousands 

About 80,000 businesses have permanently closed down in the United States between March 1 and July 25, according to data from online reviewer Yelp that was viewed by Bloomberg, and about 60,000 of those businesses were local, or businesses with fewer than five locations. 

Firms with fewer than 500 employees account for about 44% of U.S. economic activity and those store closures went a long way towards the U.S. GDP's record 32.9% annualized drop in the second quarter.

Restaurant closures represented the sector with the most closures at 12,695. Meanwhile, 7,881 retail businesses and nearly 5,000 beauty businesses failed. 

Amazon to Build $400 Million Distribution Center in Detroit

The mayor of Detroit announced that Amazon has picked the former Michigan State Fairgrounds to build a $400 million distribution center that is expected to create at least 1,200 jobs in the city. 

The 3.8 million-square-foot facility is expected to open in 2022 with employees making a minimum of $15 an hour/plus benefits, the Detroit Free Press reported. 

"This was the single largest development property left in the City of Detroit and what Detroiters need are jobs," Mayor Mike Duggan said.