US stocks head sideways…US consumer spending rises just 0.1% in August…Wells Fargo appoints new CEO
NEW YORK (AP) – U.S. stocks headed sideways in early trading today as broad gains for banks were offset by sharp drops in technology companies. Banks were among the few gainers in the early going, led by Wells Fargo after the troubled bank named a new CEO. JPMorgan and Bank of America also rose while bond yields edged higher. At 10:26 a.m. Eastern Time, the S&P 500 was down 2 points to 2,976. The Dow was up 26 points at 26,917. And the Nasdaq was down 29 points at 8,001.
WASHINGTON (AP) – American consumers boosted their spending by just 0.1% in August, the smallest gain in six months, even as their incomes rose at a solid pace. The Commerce Department says that personal income increased 0.4%, up from a small gain in the previous month. A measure of inflation preferred by the Federal Reserve was flat, but excluding the volatile food and energy categories, core prices ticked up 0.1%.
WASHINGTON (AP) – Orders to U.S. factories for big-ticket manufactured goods showed a slight increase in August but a key sector that tracks business investment plans declined, likely reflecting fallout from President Donald Trump’s trade wars. The Commerce Department reports that orders for durable goods edged up 0.2% in August after a much bigger 2% gain in July. The volatile commercial aircraft sector dropped sharply. Orders in a key category used as a proxy for business investment edged down 0.2 percent, the weakest showing since a 1.1% drop in April.
SAN FRANCISCO (AP) – Wells Fargo is naming the CEO of Bank of New York Mellon to lead the bank which has been plagued by scandal in recent years. Wells Fargo says that Charles Scharf will take over for C. Allen Parker, who has led Wells Fargo since March after its second CEO stepped down in quick succession. The banking giant has been involved in a series of scandals starting in 2016 with the uncovering of millions of fake checking accounts its employees opened to meet sales quotas.
LONDON (AP) – One of the Bank of England’s nine top policymakers says interest rates may have to be cut even if Britain manages to avoid a no-deal Brexit on Oct. 31. In a speech today, Michael Saunders said the British economy has “weakened markedly” as a result of “persistently high Brexit uncertainties and softer global growth.” Saunders said, even assuming Britain avoids leaving the European Union without a deal, “persistently high Brexit uncertainties seem likely to continue to depress U.K. growth below potential for some time, especially if global growth remains disappointing.”