AP Business SummaryBrief at 7:04 p.m. EDT
Stock market today: Wall Street's worst week in a month closes out with more losses Wall Street closed out its worst week in a month with more losses, with the S&P 500 falling 1.3% and the Nasdaq dropping 1.5%. The bond market, where the yield on the 10-year Treasury briefly touched 5% for the first time since 2007, has been under pressure due to high yields that make borrowing more expensive and slow the economy. US auto workers' union boss, Shawn Fain, predicts that strikes will continue in bid for better offers from companies. The International Energy Agency's head, the head of the oil markets, called the latest Israel-Hamas war ‘definitely not good news’ for oil markets already stretched by cutbacks in oil production from Saudi Arabia and Russia and expected stronger demand from China. Spirit Airlines cancels dozens of flights to inspect some of its planes, and Spirit Airlines is canceling about 100 flights due to inspections. The Federal Reserve Chair, Jerome Powell, warned that high inflation could bring it down to a slower-growing economy and job market.
Published : 2 years ago by AP in Business
Stock market today: Wall Street's worst week in a month closes out with more losses
NEW YORK (AP) — Wall Street closed out its worst week in a month with more losses. The S&P 500 fell 1.3% Friday. The Dow lost 286 points, and the Nasdaq composite dropped 1.5%. The stock market has been under pressure from the bond market, where the yield on the 10-year Treasury briefly touched 5% Thursday evening for the first time since 2007. High yields make borrowing more expensive for everyone, and they slow the economy while dragging on investment prices. The 10-year yield eased Friday, but only after hanging near 4.99% in the morning. Crude oil prices fluctuated, and gold's price rose.
US auto workers' union boss says strikes will continue in bid for better offers from companies
DETROIT (AP) — United Auto Workers President Shawn Fain said Friday that while Detroit’s automakers have increased their wage and benefit offers, he believes the union can gain more if it holds out longer in its contract talks. In a Facebook Live appearance, Fain didn’t announce any more factories to add to those that have been on strike for up to five weeks. But he warned that the UAW could announce such an expansion of its strikes at any time, depending on how much progress it makes in its negotiations with the automakers.
Long lines at gas pump unlikely, but Middle East crisis could disrupt oil supplies, raise prices
WASHINGTON (AP) — Fifty years after the 1973 Arab oil embargo, the current crisis in the Middle East has the potential to disrupt global oil supplies and raise prices. But don’t expect a repeat of the catastrophic price hikes and long lines at the gasoline pump, experts say. The head of the International Energy Agency said the latest Israel-Hamas war is “definitely not good news” for oil markets already stretched by cutbacks in oil production from Saudi Arabia and Russia and expected stronger demand from China. Benchmark crude traded at $93 a barrel on Friday, up from $85 the day before Hamas attacked Israel, killing hundreds of civilians.
Can the new film ‘Uncharitable’ change people's minds about overhead at nonprofits?
NEW YORK (AP) — A new documentary “Uncharitable,” from “Paris Trout” and “Losing Isaiah” director Stephen Gyllenhaal, puts the long-running debate in the nonprofit sector over the role of overhead back in the spotlight. It tells the story of longtime advocate Dan Pallotta, who pioneered the idea of fundraising through bike rides and road races initially to raise money for AIDS and cancer research. Pallotta has long argued that nonprofits are unfairly pressured to cut salaries, lower operating costs and delay long term investments, which all degrade organizations’ abilities to accomplish their missions. For almost twenty years, researchers and nonprofits have warned about the negative consequences of starving nonprofits of general operating expenses, also known as overhead.
Spirit Airlines cancels dozens of flights to inspect some of its planes. Disruptions will last days
Spirit Airlines is canceling about 100 flights because it's pulling some planes out of service for inspections. Spirit isn't saying why it's inspecting the planes, but it says disruptions will last for several days. By Friday afternoon, Spirit had canceled more than 10% of its flights for the day, according to tracking service FlightAware. Spirit says customers should check the status of their flight before going to the airport.
Gale-force winds and floods strike northern Europe. At least 3 people killed in the UK
COPENHAGEN, Denmark (AP) — Gale-force winds and floods have struck several countries in northern Europe as the region endures more heavy rain that forecasters say will continue into the weekend. At least three people have been reported dead, two in Scotland and one in England. A plane in the north of England steered off the runway amid worsening conditions. The U.K.’s weather forecaster issued a new “red” warning for parts of eastern Scotland for further flooding throughout Saturday. The winds are expected to hit hardest in the eastern part of Denmark’s Jutland peninsula and the Danish islands in the Baltic Sea.
Fed Chair Powell: Slower economic growth may be needed to conquer stubbornly high inflation
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell said inflation remains too high and that bringing it down to the Fed’s target level will likely require a slower-growing economy and job market. Powell noted that inflation has cooled significantly from a year ago. But he cautioned that it’s not yet clear whether inflation is on a steady path back to the Fed’s 2% target. “A few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said in remarks to the Economic Club of New York. “We cannot yet know how long these lower readings will persist or where inflation will settle over coming quarters.”
Home sales fell again in September as surging mortgage rates, rising prices discouraged homebuyers
LOS ANGELES (AP) — Sales of previously occupied U.S. homes fell for the fourth month in a row in September, held back by surging mortgage rates and a thin supply of properties on the market. Existing home sales fell 2% last month from August to a seasonally adjusted annual rate of 3.96 million, the National Association of Realtors said Thursday. That’s just above the 3.9 million unit pace that economists were expecting, according to FactSet. Sales sank 15.4% compared with the same month last year. The national median sales price rose 2.8% from September last year to $394,300. It slipped 3.1% from August.
Scholz says that Germany needs to expand deportations of rejected asylum-seekers
BERLIN (AP) — Chancellor Olaf Scholz says Germany needs to start deporting “on a large scale” migrants who don’t have the right to stay in the country, adding to increasingly tough talk on migration since his coalition performed badly in two state elections earlier this month. Scholz’s comments were published Friday, as a leading German opposition figure called for the center-left chancellor to dump his quarrelsome coalition partners and instead form a government with conservatives to deal with migration issues. Scholz has signaled an increased desire to take personal charge of migration over the past two weeks, following a pair of regional elections in which voters punished his three-party coalition.
EU demands Meta and TikTok detail efforts to curb disinformation from Israel-Hamas war
LONDON (AP) — The European Union has demanded Meta and TikTok detail their efforts to curb illegal content and disinformation during the Israel-Hamas war. The 27-nation bloc’s executive branch on Thursday formally requested that the social media companies provide information on how they’re complying with pioneering new digital rules aimed at cleaning up online platforms. Meta and TikTok were asked to explain what they've done to reduce the risk of spreading and amplifying terrorist and violent content, hate speech and disinformation. The Israel-Hamas war is putting the new digital rules to the test. Elon Musk’s social media platform X faced the EU's first formal request under the rules last week.