Business News

US economic growth for last quarter is revised up to a solid 3% annual rate

WASHINGTON (AP) — The U.S. economy grew last quarter at a healthy 3% annual pace, fueled by strong consumer spending and business investment, the government said in an upgrade of its initial assessment. The Commerce Department had previously estimated that the nation’s gross domestic product expanded at a 2.8% rate from April through June. The second-quarter growth marked a sharp acceleration from a sluggish 1.4% growth rate in the first three months of 2024. Consumer spending, which accounts for about 70% of U.S. economic activity, rose at a 2.9% annual rate last quarter, up from 2.3% in the government’s initial estimate. Thursday’s report reflected an economy that remains resilient while still gradually slowing under the pressure of continued high interest rates.

Fewer Americans file for jobless claims as US labor market continues to defy elevated interest rates

The number of Americans filing for unemployment benefits fell slightly last week as the U.S. labor market remains healthy in the face of high interest rates. Jobless claims ticked down by 2,000 to 231,000 for the week of Aug. 24, the Labor Department reported Thursday. That’s just below the 232,000 new filings analysts were expecting. The four-week average of claims, which evens out some of the week-to-week volatility, fell by 4,750 to 231,500. Weekly filings for unemployment benefits, which are considered a proxy for layoffs, remain low by historic standards. The total number of Americans collecting jobless benefits rose by 13,000 to 1.87 million for the week of Aug. 17.

Average rate on a 30-year mortgage eases to 6.35%, its lowest level in more than a year

The average rate on a 30-year mortgage eased for the second week in a row and remains at its lowest level in more than a year. That’s good news for prospective homebuyers facing home prices near all-time highs. Mortgage buyer Freddie Mac said Thursday that the rate fell to 6.35% from 6.46% last week. A year ago, the rate averaged 7.18%. Mortgage rates are expected to keep trending lower overall this year. That’s due to signs of waning inflation and a cooling job market, which have raised expectations that the Federal Reserve will cut its benchmark interest rate next month for the first time in four years.

Nvidia stock slips even after earnings top Wall Street estimates and demand for AI chips surges

LOS ANGELES (AP) — Nvidia may have exceeded Wall Street estimates as its profit jumped — buffeted by the chipmaking dominance that has cemented Nvidia’s place as the poster child of the artificial intelligence boom — but investors seemed less than impressed. The company reported a net income of to $16.6 billion. Adjusted for one-time items, net income was $16.95 billion. Revenue rose to $30 billion, up 122% from a year ago and 15% from the previous quarter.

Stock market today: Wall Street rises as market focus turns to strength of the US economy

Stocks are rising on Wall Street as markets shift their focus back to the U.S. economy. The S&P 500 rose 0.8% in afternoon trading Thursday, while the Dow Jones Industrial Average added 459 points, or 1.1% and the Nasdaq rose 0.9%. The Commerce Department upgraded its assessment of U.S. economic growth for the second quarter to 3%, compared to a previous estimate of 2.8%. The market’s gains came despite a drop in Nvidia, which has ridden the frenzy over artificial intelligence to become one of the S&P 500’s most influential companies. Its shares fell more than 3% despite stellar results for the second quarter.

Jennifer Lopez and Ben Affleck may not have had a prenuptial agreement, but you should consider one

NEW YORK (AP) — One surprising thing about Jennifer Lopez’s split from Ben Affleck is that her divorce petition did not include any mention of a prenuptial agreement. A prenup is a legal document for soon-to-be-married couples that lays out how they will divide their assets during their marriage and if they divorce. They’re common for celebrities and very wealthy couples, but divorce law attorney Raiford Dalton Palmer says you should consider one even if you don’t have a lot of money. Experts say you should have a conversation about a prenup early in your wedding planning process.

Boar’s Head plant linked to deadly outbreak broke food safety rules dozens of times, records show

Records show that a Boar’s Head deli meat plant in Virginia tied to a deadly food poisoning outbreak repeatedly violated federal regulations. Inspectors found meat and fat residue on walls, floors and equipment. They also found mold, insects and liquid dripping from ceilings. The plant in Jarratt, south of Richmond, has been tied to at least nine deaths and about 50 hospitalizations caused by listeria infections linked to tainted Boar’s Head products. Food safety experts say the conditions described in the inspection reports could allow listeria to thrive. Boar’s Head officials did not respond to AP’s requests for comment.

Best Buy reports another drop in quarterly sales amid cautious buying but business is stabilizing

NEW YORK (AP) — Best Buy, the nation’s largest consumer electronics chain, reported another quarterly drop in sales due to Americans pulling back on purchases of appliances and consumer-electronics gadgets to focus on essentials. But the latest period showed Best Buy’s sales stabilizing. The company’s results announced Thursday beat Wall Street estimates. The retailer based in Richfield, Minnesota, lowered its sales outlook but raised its earnings view for the current fiscal year. Best Buy reported earnings of $291 million for the three-month period that ended August 3. That compares with $274 million in the year-go period. Sales slipped 3% to $9.29 billion. Comparable sales — those sales from online channels and physical stores — fell 2.3%.

Nippon Steel boosts capital commitment to US Steel plants

HARRISBURG, Pa. (AP) — Nippon Steel Corp. is raising its capital commitment by more than $1 billion to spend on U.S. Steel’s plants amid entrenched political and labor opposition to the Japanese company’s acquisition of the American steelmaker. Nippon Steel’s $1.3 billion commitment Thursday to upgrade facilities in Pennsylvania and Indiana is on top of an earlier commitment to spend $1.4 billion. The announcement was dismissed by the United Steelworkers as “lip service.” The sale also has drawn opposition from Republican presidential nominee Donald Trump and President Joe Biden. Vice President Kamala Harris, the Democratic nominee, hasn’t spoken about the deal, but is endorsed by the Steelworkers.

Jaguar tells owners of older I-Pace electric SUVs to park them outdoors due to battery fire risk

DETROIT (AP) — Jaguar is telling owners of about 3,000 electric SUVs to park them outdoors and away from structures due to the risk of battery fires. The British automaker is recalling I-Pace SUVs from the 2019 model year, but has not yet developed a final remedy. As an interim fix, dealers will update software to limit battery charging to 80% of capacity. The company has issued three previous recalls for the same problem, and all of the SUVs will need the new remedy. The automaker says there have been three fires in the U.S. after previous software updates on the vehicles. No injuries were reported.