Business News

Inflation gauge closely watched by the Fed falls to lowest level since early 2021

WASHINGTON (AP) — As a presidential race profoundly shaped by Americans’ frustration with high prices nears its end, the government said Thursday that an inflation gauge closely watched by the Federal Reserve has dropped to near pre-pandemic levels. Prices rose just 2.1% in September from a year earlier, down from a 2.3% rise in August. That is barely above the Fed’s 2% inflation target and in line with readings in 2018, well before prices began surging after the pandemic recession. Yet some signs of inflation pressures remained. Excluding volatile food and energy costs, so-called core prices rose 2.7% in September from a year earlier for the third straight month.

Microsoft reports quarterly sales up 16% to $65.6 billion as investors ask if AI spending worth it

Microsoft on Wednesday reported its quarterly sales grew 16% to $65.6 billion as the company sought to assure investors its huge spending on artificial intelligence is paying off. The company has spent billions of dollars to expand its global network of data centers and other physical infrastructure required to develop AI technology that can compose documents, make images and serve as a lifelike personal assistant at work or home. As a result, AI-related products are now on track to contribute about $10 billion to the company’s annual revenue, the “fastest business in our history to reach this milestone,” CEO Satya Nadella said on a call with analysts Wednesday.

New York semiconductor site picked for $825 million in funding

ALBANY, N.Y. (AP) — U.S. Sen. Chuck Schumer says a semiconductor research facility in upstate New York will be getting $825 million in funding as one of three national technology centers. Schumer on Thursday announced that the Albany NanoTech complex was selected by federal officials as the national headquarters for research into a cutting-edge semiconductor technology known as extreme ultraviolet lithography. The lab will have the most advanced chip-making machinery in the world and allow researchers from the semiconductor industry to collaborate with their university counterparts. The development is part of a broader federal effort to boost the United States’ competitiveness in superconductors.

US applications for jobless benefits fall as layoffs remain at historically healthy levels

Fewer Americans filed for unemployment benefits last week as layoffs remained at historically healthy levels despite elevated interest rates. The Labor Department reported Thursday that jobless claim applications fell by 12,000 to 216,000 for the week of Oct. 26. That’s fewer than the 227,000 analysts forecast. Weekly applications for jobless benefits are considered a proxy for U.S. layoffs. The four-week average of weekly claims, which quiets some of the week-to-week fluctuations, fell by 2,250 to 236,500. Continuing claims, the total number of Americans collecting jobless benefits, declined by 26,000 to 1.86 million for the week of Oct. 19.

Jobs report on eve of election will be among the most muddled in years

WASHINGTON (AP) — Four days before Election Day, the government will issue its final snapshot of hiring and unemployment in the United States after a presidential race in which voter perceptions of the economy have played a central role. Yet Friday’s report will include some of the most distorted monthly employment figures in years, with job growth having been held down temporarily in October by hurricanes and worker strikes. So just as Americans are looking for a clear read on the economy, they instead will get a muddied one. The report arrives as Republican allies of Donald Trump, seeking to cast doubt on the economy’s health, have sought to undercut confidence in the credibility of the monthly jobs reports.

US economy grew at a solid 2.8% pace last quarter on strength of consumer spending

WASHINGTON (AP) — The U.S. economy grew at a healthy 2.8% annual rate from July through September, with consumers helping drive growth despite the weight of still-high interest rates. The gross domestic product — the economy’s total output of goods and services — did slow slightly from its 3% growth rate in the April-June quarter. But the latest figures still reflect surprising durability just as Americans assess the state of the economy in the final stretch of the presidential race. Consumer spending, which accounts for about 70% of U.S. economic activity, accelerated to a 3.7% annual pace last quarter, up from 2.8% in the April-June period. Exports also contributed to the third quarter’s growth, increasing at an 8.9% rate.

Stock market today: Microsoft, Meta and the burden of high expectations drag Wall Street lower

NEW YORK (AP) — Microsoft and Meta Platforms are leading Wall Street lower following their latest profit reports. The S&P 500 fell 1.4% Thursday and was on track for its worst day in nearly eight weeks. The Dow Jones Industrial Average dropped 242 points, and the Nasdaq composite tumbled 2.3%. Both Microsoft and Meta delivered better profit than expected for the latest quarter, but investors were expecting even more from them. Other influential Big Tech stocks also fell and were among the market’s heaviest weights, including Amazon and Apple. Treasury yields held steady after data showed inflation is slowing pretty much as expected.

Average rate on a 30-year mortgage in the US rises for fifth straight week

The average rate on a 30-year mortgage in the U.S. rose for the fifth straight week, returning to its highest level since early August. The rate rose to 6.72% from 6.54% last week, mortgage buyer Freddie Mac said Thursday. That’s still down from a year ago, when the rate averaged 7.76%. When mortgage rates increase they can add hundreds of dollars a month in costs for borrowers. Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy decisions and data on inflation and the economy. Bond yields have been rallying following a string of stronger-than-expected reports on the U.S. economy.

Roaring Kitty has dissolved his holdings in Chewy, but meme stocks are alive and well

NEW YORK (AP) — A pivotal actor in the meme stock craze that began during the pandemic continues to hold a powerful sway over the movement of shares in major U.S. corporations. Nearly four months after revealing a massive stake in the online pet supply retailer Chewy, Keith Gill, aka Roaring Kitty, has dissolved his entire holdings in the company. Shares slumped overnight and traded down 1% on Wednesday. The Associated Press is providing a rundown of what happened at Chewy and a brief history of the meme stock.

At 50, Hello Kitty is as ‘kawaii’ and lucrative as ever

TOKYO (AP) — Hello Kitty turns 50 on Friday. Befitting a pop icon at midlife, the bow-wearing character’s fictional birthday has brought museum exhibits, a theme park spectacle and accolades. If there’s one thing about Hello Kitty, it’s that she’s proven adaptable. For the character’s semicentennial, there have been anniversary editions of merchandise ranging from McDonald’s Happy Meals to and a Baccarat crystal figurine. An illustrator for Japanese company Sanrio drew her in 1974, but the design didn’t debut until 1975. Sanrio later gave her a London birthplace and a Nov. 1. backstory. Oh, and it describes her as a girl, not a cat.