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Trending Market News Wednesday - Virgin Atlantic, Cruises, Honda

Virgin Atlantic filed for Chapter 15 bankruptcy protection, which allows a foreign company to protect its U.S. assets.

Stocks jumped higher Wednesday despite disappointing hiring numbers from an ADP report showing that employers added 167,00 new jobs in July, short of analyst expectations of a 1.2 million job increase. 

The Dow jumped jumped 1.2%, the Nasdaq climbed 0.45% and the S&P 500 rose 0.6% in afternoon trading Wednesday. 

Virgin Atlantic Files for Chapter 15

U.K.-based Virgin Atlantic, the airline led by Richard Branson, filed for Chapter 15 bankruptcy in the U.S. following a U.K. court hearing where it was granted permission to call a creditors meeting on August 25. 

The company said that it plans to continue to operate as it restructures. It also says that while it is not technically bankrupt, it still needs the emergency $1.5 billion rescue deal that the company secured in mid-July.

The coronavirus pandemic forced Virgin to cut 80% of its flights and furlough staff in March, and the company now needs its 18-month $1.5 billion recapitalization plan to stay afloat. 

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Cruise Lines Extend Hiatus Until November

The Cruise Lines International Association announced that they are extending the suspension of voyages until at least November. 

The decision comes nearly three weeks after the CDC extended its no-sail order through September 30. 

"Committed to the health and safety of passengers and crew, CLIA oceangoing cruise line members are announcing a third voluntary suspension of U.S. cruise operations until 31 October 2020," the org said in a statement.

Honda Recalls 600,000 SUVs Due to Software Issue

Japanese carmaker Honda announced that it is recalling 608,000 SUVs and vans due to faulty software that can cause the vehicles' display panel to black out key information and the backup camera to fail. 

The vehicles affected by the recall include the 2018-2020 Odysseys, 2019-2020 Passports and 2019-2021 Pilots.

Honda says the vehicles were shipped with inappropriate software programming, leading to the issues.