Stocks waver…Prices surge higher…Boeing lowers target
NEW YORK (AP) – Stocks are wobbling between small gains and losses as investors weigh the latest quarterly earnings reports from big U.S. companies and concerns about inflation. Inflation has been a lingering concern for the markets as investors try to gauge how it will impact everything from the economic recovery’s trajectory to the Federal Reserve’s reaction.
WASHINGTON (AP) – American consumers faced a third straight monthly surge in prices in June, the latest evidence that a rapid reopening of the economy is fueling pent-up spending for goods and services that in many cases remain in short supply. The report from the Labor Department shows that consumer prices in June rose 0.9% from May and 5.4% over the past year – the sharpest 12-month inflation spike since June 2008.
NEW YORK (AP) – JPMorgan Chase says its second quarter profits more than doubled from a year ago – a reflection of the improving global economy and fewer bad loans on its balance sheet. But the bank’s revenues fell noticeably in the quarter, due a decline in interest rates during the last three months. Goldman Sachs, meanwhile, had the second-best quarterly profit in the firm’s history in the quarter ended in June, helped by a strong performance in its investment banking division that more than made up for a decline in trading revenues.
UNDATED (AP) – Boeing is temporarily lowering its delivery target for the 787 Dreamliner after discovering additional work that will need to be performed on the aircraft. The company says the 787 production rate will temporarily be lower than five per month and will gradually return to that rate. Boeing now anticipates delivering less than half of the 787s currently in inventory this year.
DETROIT (AP) – General Motors plans to spend more than $71 million to build a design center in Pasadena, California. The new new center will focus on mobility ventures outside the scope of traditional vehicles. GM wouldn’t say how many people would work at the center, but said it should help GM recruit technical and design workers from nearby universities.