Stocks rise…Nike gains…Disappointing consumer spending
NEW YORK (AP) – U.S. stocks are rising as banks rally after the Federal Reserve approved their plans to increase their dividends and buy back more stock. Wells Fargo is leaping after it said it will repurchase $24.5 billion in stock. Stocks are down for the week, but are on track to finish the second quarter with small gains. Throughout this quarter stocks have been buffeted by rising worries about trade disputes between the U.S. and China as well as the European Union, Canada and Mexico.
NEW YORK (AP) – Nike is on track for its biggest gain in more than four years after its fourth-quarter profit and sales blew past Wall Street forecasts. The company said revenue in North America grew after several quarters of declines, and the company said it will buy back $15 billion in stock over the next four years.
WASHINGTON (AP) – U.S consumers increased their spending just 0.2 percent in May, a disappointing result after two months of much stronger gains. The weaker reading could raise questions about the extent of economic growth overall in the current April-June quarter. The Commerce Department says that the tiny rise in spending last month followed much stronger increases of 0.6 percent in March and 0.5 percent in April.
TOKYO (AP) – Japan’s government is warning in a report that a higher U.S. tariff on auto imports could backfire. It says a higher tariff could jeopardize hundreds of thousands of American jobs created by Japanese auto-related companies, raise prices for U.S. consumers and devastate the U.S. and global economy. Japan’s trade ministry said it submitted the report today to the U.S. Department of Commerce. President Donald Trump last month ordered the department to determine if higher tariffs on foreign-made vehicles and auto parts would be justified on national security grounds.
BRUSSELS (AP) – The European Union is telling its member nations to get ready for the possibility that Britain could leave the bloc without any deal ahead of time. The EU says there’s been “no substantial progress” on the key issue of the Irish border. With nine months until the U.K. officially leaves in March, frustrated EU officials say divisions within the British government over Brexit are blocking progress on a divorce deal.