Stocks down…Consumer spending up…Pending home sales sink
NEW YORK (AP) – Stocks are lower in morning trading on Wall Street. Technology and internet companies are taking some of the largest losses. Deutsche (DOY’-chuh) Bank skidded after German authorities searched its offices on suspicion some of the bank’s employees helped clients launder money. The S&P 500 index is coming off its largest rally in eight months and has climbed nearly 4 percent this week.
WASHINGTON (AP) – Consumers boosted their spending in October at the fastest pace in seven months. The Commerce Department says consumer spending rose a sharp 0.6 percent, the biggest increase since a similar gain in March. It was three times faster than the 0.2 percent September performance. Incomes were up 0.5 percent in October, a significant pickup from a 0.2 percent September gain. A key gauge of inflation tied to consumer spending posted a 2 percent rise in October compared to a year ago, hitting the 2 percent annual target for inflation set by the Federal Reserve.
WASHINGTON (AP) – Pending home sales sank in October, as higher mortgage rates dampened enthusiasm among would-be buyers. The National Association of Realtors says its pending home sales index fell 2.6 percent last month to 102.1. The index based on contract signings has tumbled 6.7 percent from a year ago. Pending sales are a barometer of home purchases that are completed a month or two later.
BERLIN (AP) – German pharmaceutical giant Bayer AG says it’s cutting 12,000 jobs worldwide as it seeks to reduce costs. Bayer says details of the cuts to its 118,200-stong workforce would be worked out in coming months but that “a significant number” of the reductions would come in Germany. Bayer acquired U.S. seed and weed-killer maker Monsanto this year.
BERLIN (AP) – Some 170 police officers, investigators and prosecutors have raided the German offices of Deutsche (DOY’-chuh) Bank on the suspicion bank employees helped clients set up offshore companies in tax havens to launder hundreds of millions of euros. Prosecutors say the investigation emerged from an analysis of documents leaked from tax havens in recent years, including the 2016 “Panama Papers.”