Business News

US retail sales plunged along with temperatures in January after a bustling holiday season

WASHINGTON (AP) — U.S. retail sales dropped sharply last month, in part because cold weather kept more Americans indoors and dented sales at car dealers and most other stores. Retail sales dropped 0.9% in January from the previous month, the Commerce Department said, after two months of healthy gains. January’s average temperature was the lowest since 1988, according to Pantheon Macroeconomics, and was particularly disruptive in the South, where such cold weather was unusual. Devastating fires in Los Angeles may have also impacted spending. Sales dropped sharply last month at auto dealers, falling 2.8%, as well as at furniture stores, home and garden centers, and even in the usually strong online retail sector, where sales dropped 1.9%.

Can suspending a cage-free egg law solve the soaring price problem? Nevada takes a crack at it

LAS VEGAS (AP) — Record high egg prices prompted Nevada lawmakers to unanimously back suspending their cage-free egg law, but the six other states with similar laws in effect have shown no sign of dropping them even if it might help lower grocery bills. By relaxing the cage-free rule, Nevada could get access to additional eggs, but the supply of all eggs remains tight because nearly 159 million birds have been slaughtered since the bird flu outbreak began to help limit the spread of the virus. It is not clear dropping cage-free laws will have a significant effect on prices that peaked at an average of $4.95 per dozen because the farmers who made the switch can’t easily go back to raising chickens in massive barns.

TikTok returns to Apple and Google app stores in the US

HONG KONG (AP) — TikTok has returned to the app stores of Apple and Google in the U.S., after President Donald Trump delayed the enforcement of a TikTok ban. TikTok, which is operated by Chinese technology firm ByteDance, was removed from Apple and Google’s app stores on Jan. 18 to comply with a law that requires ByteDance to divest the app or be banned in the U.S. The popular social media app, which has over 170 million American users, previously suspended its services in the U.S. for a day before restoring service following assurances from Trump that he would postpone banning the app. On Trump’s first day in office, he signed an executive order to extend the enforcement of a ban on TikTok to April 5.

State Department halts plan to buy $400M worth of armored vehicles from Musk’s Tesla

FORT LAUDERDALE, Fla. (AP) — The State Department had been in talks with Elon Musk’s Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration after reports emerged about a potential $400 million purchase. A State Department spokesperson said the electric car company owned by Musk was the only one that expressed interest back in May 2024. The deal with Tesla was only in its planning phases but it was forecast to be the largest contract of the year. It shows how some of his wealth has come and was still expected to come from taxpayers.

Stock market today: Wall Street flirts with a record as indexes drift

NEW YORK (AP) — Wall Street is flirting with a record, as U.S. stock indexes drift following some mixed profit reports from big companies. The S&P 500 rose 0.1% in Friday morning trading, a day after rallying within 0.1% of its all-time high set last month. The Dow Jones Industrial Average dipped 17 points, and the Nasdaq composite added 0.1%. Airbnb rallied after reporting stronger profit than analysts expected, while Applied Materials fell after giving a forecast for upcoming revenue that fell short of some estimates. Treasury yields eased after a report said sales at U.S. retailers weakened sharply last month.

EPA chief says he will seek return of $20 billion in clean-energy grants awarded by Biden

WASHINGTON (AP) — In a major reversal, the new head of the Environmental Protection Agency says he’ll try to rescind $20 billion in grants awarded by the Biden administration for climate and clean-energy projects. EPA Administrator Lee Zeldin says the agency will revoke contracts for a “green bank” that is set to fund thousands of projects to fight climate change and promote environmental justice. The program was approved by Democrats under President Joe Biden’s signature climate law. Republicans in Congress have called the green bank a “slush fund” and voiced concern over how the money will be used.

Treasury watchdog begins audit of Musk DOGE team’s access to federal government’s payment system

WASHINGTON (AP) — The Treasury Department’s Office of Inspector General says it’s launching an audit of the security controls for the federal government’s payment system. That’s after Democratic senators raised red flags about the access provided to Trump aide Elon Musk’s Department of Government Efficiency. The audit will also review the past two years of the system’s transactions as it relates to Musk’s assertion of “alleged fraudulent payments.” That’s according to a letter from Treasury’s deputy inspector general obtained Friday by The Associated Press. The audit marks part of the broader effort led by Democratic lawmakers and federal employee unions to provide transparency about DOGE’s activities under President Donald Trump’s Republican administration.

Next week: Housing starts, Fed minutes and Walmart earnings

The Commerce Department on Wednesday reports on housing starts for January and the Federal Reserve releases minutes from its most recent policy meeting. On Thursday, Walmart reports its fourth-quarter financial results.