Stocks edge higher…GDP growth slows…2018 economic growth revised downward
NEW YORK (AP) – U.S. stock indexes are slightly higher in morning trading on Wall Street following strong profit reports from several big companies. Google parent Alphabet soared after reporting earnings that blew past analysts’ forecasts. Twitter also jumped after reporting a strong quarter, but online retail giant Amazon slipped after a rare earnings miss as the company ramps up spending on faster deliveries.
WASHINGTON (AP) – The U.S. economy slowed sharply in the second quarter even as consumers stepped up their spending. The Commerce Department says the gross domestic product grew at a 2.1% annual rate in the April-June quarter, down from a 3.1% gain in the first quarter. But consumer spending, which accounts for 70% of economic activity, accelerated to a sizzling 4.3% growth rate after a lackluster 1.1% annual gain in the first quarter.
WASHINGTON (AP) – The government says the U.S. economy grew more slowly in 2018 than it previously estimated. The Commerce Department lowered its estimate of growth from 3% to 2.5%, mainly because businesses spent less on buildings, equipment and software than it had thought. The department made the change based on more comprehensive data as part of its annual revisions to gross domestic product, or GDP, the broadest measure of the nation’s output of goods and services. The revisions cover the five years from 2014 through 2018.
SAN FRANCISCO (AP) – Twitter is reporting surprisingly strong user numbers and revenue even as it eliminates robotic and fake accounts on its platform. On that front, the company said instances of suspicious behavior and spam dropped by 18% during the second quarter. But Twitter’s push to cut down on fake accounts costs money, and its adjusted profit fell 36% to about $37 million, or 5 cents per share. Revenue surged 18 percent, to $841 million, far better than the $829 million that Wall Street was looking for, according to a survey by FactSet.
CHICAGO (AP) – McDonald’s newly modernized stores and growth in delivery helped the world’s largest hamburger chain serve up the biggest increase in global sales at established locations during the second quarter in seven years. The Chicago-based chain reported a 6.5 % gain in sales at locations opened at least 13 months. It marked the biggest gain since the first quarter of 2012 when it posted a 7.3 % increase. It was also its 16th consecutive bump in comparable-store sales globally. In the U.S., second quarter comparable sales increased 5.7%.