Business News

White House says deals struck to cut prices of popular Medicare drugs that cost $50 billion yearly

WASHINGTON (AP) — Federal officials have reached deals with drug companies to lower the price for 10 of Medicare’s most popular and costliest drugs. But there are few immediate details about the new prices that older Americans will pay when they fill those prescriptions. White House officials say they expect taxpayers to save $6 billion and older adults could save roughly $1.5 billion in total on their medications. The newly negotiated prices will impact the price of drugs that help manage diabetes, blood cancers and prevent heart failure or blood clots. But the new prices won’t go into effect until 2026. Next year, the government can select another 15 drugs for price negotiations.

US shoppers sharply boosted spending at retailers in July despite higher prices

WASHINGTON (AP) — Americans stepped up spending at retailers last month by the most in a year and a half, easing concerns that the economy might be weakening under the pressure of higher prices and elevated interest rates. Auto dealers, electronics and appliance stores and grocery stores all reported strong sales gains. The July retail sales data provided reassurance that the U.S. economy, while slowing under the pressure of high interest rates, remains resilient. It showed that America’s consumers, the primary driver of economic growth, are still willing to spend. The prospect of a still-growing economy is likely to be promoted by Vice President Kamala Harris’ presidential campaign, which is preparing to roll out policies Friday to ban “price gouging” on groceries.

Walmart grows more optimistic about 2024 as bargains prove a powerful lure for the inflation weary

NEW YORK (AP) — Walmart had another quarter of strong sales that topped almost all expectations with its comparatively low prices proving a powerful draw for millions who have struggled with rising costs for housing, groceries and almost everything else. The nation’s largest retailer raised its full-year outlook. Walmart executives said Thursday that the consumer may still be holding out for deals, but they’re not seeing signs that their customers are fraying either. Shares are up nearly 7%.

Potentially massive pay package for Starbucks new CEO, and he doesn’t even have to move to Seattle

Incoming Starbucks CEO could make well in excess of $100 million in his first year with the company under an incentive-laden contract, and he will not be required to relocate from his home in California to Seattle, the home of the global coffee giant. Starbucks announced on Tuesday that Brian Niccol would become its chairman and CEO, taking over from Laxman Narasimhan, who stepped down abruptly after spending a little more than a year as the company’s top executive. Niccol is among the mostly highly sought after corporate executives after establishing a track record of success in turning around companies that have hit a rough patch, including Taco Bell and, most recently, Chipotle.

Stock market today: Wall Street roars closer to its records as US shoppers help drive the economy

NEW YORK (AP) — Wall Street is rallying following signals the U.S. economy is holding up better than expected. The S&P 500 climbed 1.3% in midday trading Thursday and was on track for a sixth straight gain following a scary few weeks. The Dow Jones Industrial Average jumped 465 points, and the Nasdaq composite rose 2.1%. Treasury yields leaped in the bond market following the data showing U.S. shoppers increased their spending last month and fewer workers applied for unemployment benefits. Walmart added to the optimism after raising its sales forecast for the year. Wall Street still expects the Federal Reserve to cut interest rates next month.

One Tech Tip: Don’t want chatbots using your conversations for AI training? Some let you opt out

LONDON (AP) — Be careful what you tell a chatbot. Your conversation might be used to improve the artificial intelligence system that it’s built on. If you ask ChatGPT for advice about your embarrassing medical condition, beware that anything you disclose could be used to tweak OpenAI’s algorithms that underpin its AI models. These models were trained on enormous troves of information scraped from the internet. It’s probably too late to remove any of your data that might have been used but what you can do going forward is stop any of your chatbot interactions from being used for AI training. It’s not always possible but some companies give users the option.

Average rate on a 30-year mortgage ticks up to 6.49%, near its lowest level in more than a year

The average rate on a 30-year mortgage edged higher this week, holding close to its lowest level in more than a year. The rate rose to 6.49% from 6.47% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.09%. Despite the modest uptick, mortgage rates are expected to keep trending lower overall this year, as signs of waning inflation and a cooling job market have raised expectations that the Federal Reserve will cut its benchmark interest rate next month for the first time in four years.

How a small group of nuns in rural Kansas vex big companies with their investment activism

ATCHISON, Kansas (AP) — Among corporate America’s most persistent shareholder activists are 80 nuns in a monastery outside Kansas City. The Benedictine sisters of Mount St. Scholastica have taken on the likes of Netflix, Amazon and Google – calling on companies to do everything from AI oversight to measuring pesticides. They invest in corporations that match their religious ideals, but also in some that don’t, so they can push change. As activist investing becomes politically polarized, the nuns are no strangers to making a statement. Recently they went viral for denouncing a speech from fellow Catholic Harrison Butker of the Kansas City Chiefs.

US unemployment claims fall 7,000 to 227,000 in sign of resiliency in job market

WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell last week, another sign that the job market remains resilient in the face of high interest rates. Jobless claims dropped by 7,000 to 227,000 last week, the Labor Department reported Thursday. The four-week average of claims, which smooths out week-to-week ups and downs, fell by 4,500 to 236,500. Weekly filings for unemployment benefits, which are a proxy for layoffs, remain low by historic standards. But they started rising in May, adding to evidence that high interest rates are taking a toll on the U.S. job market.