Business News

December wholesale prices up a hot 0.4% as fight against inflation appears to have stalled

WASHINGTON (AP) — U.S. wholesale prices came in hotter than expected last month at a time when progress against inflation appears to have stalled, undercutting expectations for lower interest rates this year. The Labor Department reported Thursday that its producer price index — which tracks inflation before it reaches consumers — rose 0.4% from December and 3.5% from January 2024. Forecasters had expected a 0.2% change month over month and 3.2% year over year.

Stock market today: Fat profit reports lift Wall Street ahead of a tariff announcement

NEW YORK (AP) — U.S. stocks are rising as big U.S. companies keep reporting bigger profits than expected. The S&P 500 was 0.7% higher Thursday. The Dow Jones Industrial Average added 163 points, and the Nasdaq composite gained 1.1%. MGM Resorts International helped lead the way, along with other companies reporting better profit than expected, including GE HealthCare Technologies and Robinhood Markets. Such reports are helping to offset worries about stubbornly high inflation. A report on Thursday showed hotter-than-expected inflation at the U.S. wholesale level. An announcement is scheduled for later in the day about possible tariffs from President Donald Trump.

Elon Musk calls for the US to ‘delete entire agencies’ from the federal government

DUBAI, United Arab Emirates (AP) — Elon Musk has called for the United States to “delete entire agencies” from the federal government. Musk has consolidated control over large swaths of the government with President Donald Trump’s blessing since assuming leadership of the Department of Government Efficiency. That’s included sidelining career officials, gaining access to sensitive databases and inviting a constitutional clash over the limits of presidential authority. Musk made the comments on Thursday to the World Governments Summit in Dubai. Musk, the world’s wealthiest person through his investments in SpaceX and electric carmaker Tesla, also joked that he was the “White House’s tech support,” borrowing from his profile on the social platform X, which he owns.

Breakfast is booming at US restaurants. Is it also contributing to high egg prices?

It’s a chicken-and-egg problem: Restaurants are struggling with record-high U.S. egg prices, but their omelets, scrambles and huevos rancheros may be part of the problem. Breakfast is booming at U.S. eateries. First Watch, a restaurant chain that serves breakfast, brunch and lunch, nearly quadrupled its locations over the past decade to 570. Fast-food chains like Starbucks and Wendy’s added more egg-filled breakfast items. In normal times, egg producers could meet the demand. But a bird flu outbreak that has forced them to slaughter their flocks is making supplies scarcer and pushing up prices. Some restaurants like Waffle House have added a surcharge to offset their costs.

Japanese automakers Honda, Nissan and Mitsubishi end talks on integrating their businesses

TOKYO (AP) — Japanese automakers Honda, Nissan and Mitsubishi are dropping their talks on business integration. Nissan Chief Executive Makoto Uchida said he could not accept a proposal for his company to become a subsidiary of Honda. Separately, Honda Chief Executive Toshihiro Mibe said Honda suggested a stock swap to speed up decision-making. Honda and Nissan announced the talks in December. Mitsubishi Motors was also considering joining that group. Uchida said Nissan will aim for a turnaround without Honda. Analysts say the automakers’ model lineups and strengths overlap in an industry shaken by the arrival of powerful newcomers like Tesla and BYD.

The number of Americans seeking jobless benefits falls as employers continue to hold on to workers

U.S. applications for unemployment benefits fell last week as employers continue to retain workers despite resurgent inflation and elevated interest rates. The number of Americans filing for jobless benefits fell by 7,000 to 213,000 for the week ending February 8, the Labor Department said Thursday. Analysts projected that 215,000 new applications would be filed. Weekly applications for jobless benefits are considered representative of layoffs. The total number of Americans receiving unemployment benefits for the week of February 1 fell to 1.85 million, a decrease of 36,000 from the previous week.

Average US rate on a 30-year mortgage eases to 6.87%, fourth straight weekly decline

The average rate on a 30-year mortgage in the U.S. eased for the fourth week in a row, an encouraging sign for prospective home shoppers as the spring homebuying season gets underway. The average rate fell to 6.87% from 6.89% last week, mortgage buyer Freddie Mac said Thursday. A year ago, it averaged 6.77%. After falling to a 2-year low just above 6% last September, the average rate has been mostly hovering around 7% this year, echoing a sharp rise in the 10-year Treasury yield, which lenders use as a guide for pricing home loans.