Business Highlights: US retail sales rise solidly in July, WeWork sounds the alarm
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Retail sales rose solidly last month in a sign that consumers are still spending freely
NEW YORK (AP) — Americans increased their purchases at retailers last month – for clothing, dining out, sporting goods and other areas – in a sign that solid consumer spending is still powering a resilient U.S. economy. Retail sales rose a better-than-expected 0.7% in July from June, according to the Commerce Department’s report Tuesday. The gain followed a revised 0.3% gain the previous month. Excluding autos and gas, sales rose a solid 1%. Sales at a number of different outlets increased. Department stores posted a 0.9% increase, while clothing and accessories stores had a 1% gain. Sales at sporting goods stores and hobby stores rose 1.5%. But furniture and home furnishings stores and electronics stores remained weak, registering declines.
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‘Bidenomics’ delivered a once-in-generation investment. It shows the pros and cons of policymaking
WASHINGTON (AP) — There are so many dots on the maps they blur into blobs – each one reflecting trillions of public and private dollars flowing in the U.S. in a nationwide investment. Roads, broadband, green energy projects. It’s a once-in-a-generation undertaking, thanks to three big bills approved by Congress last session. They’re now coming online. President Joe Biden calls it “Bidenomics.” Republicans criticize it as big government overreach. Taken together, the estimated $2 trillion is a centerpiece of Biden’s reelection effort. On the ground, it’s a mix of the promise and pitfalls of domestic policymaking beginning to take shape across the country.
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Stock market today: Wall Street drops as faltering Chinese economy sets off global slide
NEW YORK (AP) — A sharp drop for Wall Street capped a day of declines worldwide after discouraging data on China raised worries about the global economy. The S&P 500 fell 1.2% Tuesday after reports indicated a deepening slump for the world’s second-largest economy. The Dow dropped 361 points, and the Nasdaq sank 1.1%. A separate report on the U.S. economy showed sales growth at retailers accelerated last month. That raises hopes the U.S. economy can avoid a recession. But in a downside for markets, it also heightened the threat that the Federal Reserve will keep interest rates high for longer to snuff out inflation.
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Going to college? Here’s what you should know about student loans
NEW YORK (AP) — If you’re heading to college or starting to think about where you’d like to apply, you’re probably considering options for funding your education. If you need to borrow money to pursue your dreams, you are far from alone. According to the Federal Reserve, 30% of all U.S. adults said they incurred at least some debt for their education. Additionally, borrowers owe a collective $1.77 trillion in student loan debt, including federal and private loans. If you’re a high school senior or a college student, you’ll want to apply for federal student loans through the Free Application for Federal Student Aid, also known as FAFSA.
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Russia’s central bank makes huge interest rate hike to try to prop up falling ruble
TALLINN, Estonia (AP) — Russia’s central bank has made a big interest rate hike in an emergency move designed to fight inflation and strengthen the ruble. This week, the country’s currency reached its lowest value since early in the war with Ukraine. The decision Tuesday comes as Moscow increases military spending and Western sanctions weigh on its energy exports. That has dragged down the ruble. Analysts say the flagging currency doesn’t mean the Russian economy is in freefall — though it is facing challenges, including rising prices for households and businesses. A lower exchange rate allows Moscow to transfer the dollars it earns from selling oil and natural gas into more rubles to pay pensions and run government agencies.
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WeWork sounds the alarm, prompting speculation around the company’s future
NEW YORK (AP) — WeWork said last week there was “substantial doubt” about its ability to stay in business, prompting speculation around the future of the troubled workspace-sharing company. WeWork pointed to increased member churn, financial losses and the company’s need for cash, among other factors — and said that improving its liquidity and profitability over the next 12 months would be crucial to maintaining operations. While the future remains unknown, experts say that risk of bankruptcy is on the table — bringing in questions around implications for the already-weakening world of office real estate.
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Advocates sue federal government for failing to ban imports of cocoa harvested by children
WASHINGTON (AP) — Child welfare advocates have filed a federal lawsuit asking a judge to force the Biden administration to block imports of cocoa harvested by children in West Africa that ends up in America’s most popular chocolate desserts and candies. The lawsuit filed Tuesday, which was brought by International Rights Advocates, seeks to have the federal government enforce a 1930s era federal law that requires the government to ban products created by child labor from entering the U.S. The nonprofit group says it filed the suit because Customs and Border Protection and the Department of Homeland Security have ignored extensive evidence documenting children cultivating cocoa destined for well-known U.S. candy makers.
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President Biden focuses on factory jobs in Wisconsin, ignoring latest Trump indictment
MILWAUKEE (AP) — President Joe Biden stopped in the battleground state of Wisconsin to discuss how economic policies he calls “Bidenomics” are boosting the economy. The Tuesday trip is timed one day before the first anniversary of the Inflation Reduction Act, a major economic bill Biden signed into law. Biden’s visit to a state he narrowly won in 2020 also comes a week before Republicans descend on Milwaukee for the party’s first presidential debate. Biden’s visit, his first since February, showcases the importance of Wisconsin in 2024. Wisconsin voted narrowly for Republican Donald Trump in 2016 but flipped to Democrat Biden in 2020.
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The S&P 500 fell 51.86 points, or 1.2%, to 4,437.86. The Dow Jones Industrial Average fell 361.24 points, or 1%, to 34,946.39. The Nasdaq composite fell 157.28 points, or 1.1%, to 13,631.05. The Russell 2000 index of smaller companies fell 24.74 points, or 1.3%, to 1,895.75.