Stocks rise
Stocks are climbing in midday trading on Wall Street after a strong July jobs report gave investors more confidence that the economy is still growing.
Bank stocks rose on the prospect of higher interest rates and consumer companies rose as investors hope consumers will have more money to spend.
Strong quarterly earnings helped lift Kraft Heinz and Priceline. Bristol-Myers Squibb fell after a lung cancer drug failed in a clinical trial.
ECONOMY
US adds a robust 255K jobs; unemployment stays 4.9 pct.
Employers added a healthy 255,000 jobs last month, a sign of confidence amid sluggish growth that points to a resilient U.S. economy.
The Labor Department says the unemployment rate remained a low 4.9 percent in July. More Americans launched job searches, and nearly all were hired. But the influx of job seekers meant that the number of unemployed fell only slightly.
The figures suggest that U.S. employers shook off concerns about Britain’s late-June vote to quit the European Union. Nor were they apparently discouraged by tepid growth in the first half of the year of just 1 percent at an annual rate.
Average hourly pay picked up and is 2.6 percent higher than it was a year ago, matching the fastest pace since the recession.
TRADE GAP
US trade deficit hits $44.5 billion, biggest in 10 months
The U.S. trade deficit increased to the highest point in 10 months, driven up by a big rise in imports of oil and Chinese-made computers, cell phones and clothing.
The Commerce Department says the deficit rose to $44.5 billion in June, 8.7 percent higher than a revised May deficit of $41 billion. It was the biggest gap between what America sells abroad and what the country imports since a $44.6 billion deficit last August.
Exports, which have struggled this year because of the strong dollar and global weakness, edged up 0.3 percent to $183.2 billion. Imports rose a faster 1.9 percent to $227.7 billion, led by a 19.4 percent jump in petroleum imports.
The politically sensitive deficit with China increased to $29.8 billion, the highest in seven months.
CAMPAIGN 2016-CLINTON
Clinton says Obama deserves credit on economy
Hillary Clinton says President Barack Obama isn’t getting the credit he deserves for leading the nation out of a crippling recession.
Speaking at an annual convention of black and Hispanic journalists, Clinton quoted the expression, “When the economy catches a cold, communities of color catch pneumonia.”
She said “we are out of the ditch we were in” and should now focus on building upon progress. She said civil rights activist Rosa Parks may have opened up seats on the bus, but the nation’s job is to make sure everyone can afford bus fare.
Clinton says she wants to invest more in infrastructure, generate more jobs for young people and help black entrepreneurs start businesses. She also promised in her first 100 days as president to propose comprehensive immigration legislation.
CAMPAIGN 2016-TRUMP
Trump unveils economic advisers
Donald Trump has announced his team of economic advisers and it includes many of the people who have been already helping his campaign.
Among those on the team are John Paulson, a hedge fund billionaire, and Tom Barrack, a real estate investor and close friend of Trump who has been raising money for a super PAC supporting Trump. The team is being led by Trump’s national policy director, Stephen Miller, along with Dan Kowalski, a former staffer on the Senate Budget Committee.
No women are on the list.
In the statement announcing the team, Trump’s campaign also said he’ll unveil a detailed jobs plan on Monday at the Detroit Economic Club. It said he will focus on “empowering Americans by freeing up the necessary tools for everyone to gain economically.”
TRUMP TAJ MAHAL CLOSING
Trump Taj Mahal closure could sway casino expansion vote
The impending closure of Atlantic City’s Trump Taj Mahal casino may help bolster the arguments of both sides in the November referendum over expanding casinos to New York City’s northern New Jersey suburbs.
Proponents say New Jersey casinos are already losing business in nearby states and needs new ones closer to these customers.
Opponents argue that Atlantic City’s casinos are already so fragile that three or more may close when faced with new in-state competition.
Billionaire owner Carl Icahn says he will shut the Trump Taj Mahal down after Labor Day, saying it is losing millions of dollars a month. That would leave Atlantic City with seven.
Atlantic City’s main casino workers’ union has been on strike against the casino since July 1.
Voters will decide whether to add two new casinos.
BRISTOL-MYERS-CANCER DRUG
Bristol-Myers drug fails lung cancer study, shares plunge
A blockbuster cancer treatment failed in a key study as the drug’s maker, Bristol-Myers Squibb, attempts to extend its usage to lung cancer patients.
Shares of the Princeton, New Jersey, company plunged 17 percent when trading opened Friday. Shares of Merck & Co., which makes a rival cancer drug, spiked 8 percent to reach a one-year high.
Bristol’s drug, Opdivo, and Merck’s drug, Keytruda, are immunotherapies, which bolster the immune system so that patients can better fight cancer. Both drugs are already approved to treat melanoma and lung cancer, but only after chemotherapy.
In June, Merck reported positive results from a key study focusing on Keytruda as a lone treatment for lung cancer. The negative results from Bristol appear to put Merck in the lead for treating cancer patients without resorting to chemotherapy and its drastic side effects.
The latest late-stage study for Opdivo involved 541 patients who had received no prior treatment for lung cancer.
TRANSMISSION RECALL
Parts maker ZF recalling 505K transmission control sensors
Automotive parts supplier ZF North America is recalling 505,000 control sensors in the U.S. because they can make some nine-speed transmissions shift into neutral without warning.
The company says in government documents that the transmissions were sold to several automakers that will issue recalls. But the only one identified was Fiat Chrysler.
ZF says a star-shaped connector on a wiring harness wasn’t crimped properly. That can increase electrical resistance that can shift the transmission into neutral.
The problem came to light in July when Fiat Chrysler recalled more than 323,000 U.S. vehicles to fix the problem.
ZF says a software update will fix the problem.
It was unclear whether the glitch had caused any crashes or injuries. Fiat Chrysler said in July that there were none.
BLAMING BIG OIL
Louisiana pols go to court blaming Big Oil for coastal ruin
The oil industry has left a big footprint on Louisiana, but its legacy is being questioned like never before with Democrat John Bel Edwards in the governor’s mansion.
Turning state politics upside-down, leaders of both parties are taking Big Oil to court, seeking billions in damages for making the coast sink into the sea.
Industry lawyers blame damage on levees built to control the Mississippi River. And one executive calls the lawsuits a hypocritical shakedown, given the industry’s $73 billion economic impact.
A Delaware-sized stretch of Louisiana is gone forever, but the politicians hope to save what’s left.
38 STUDIOS-SEC
Judge won’t dismiss SEC suit vs. Wells Fargo over 38 Studios
A federal judge has refused to dismiss a U.S. Securities and Exchange Commission lawsuit accusing Wells Fargo Securities of defrauding investors in Rhode Island’s failed $75 million deal with 38 Studios, the video game company started by former Red Sox pitcher Curt Schilling.
U.S. District Judge Jack McConnell on Friday did dismiss a Wells Fargo banker from the complaint, but the SEC immediately said it would refile the lawsuit against him to address the judge’s concerns.
The SEC sued Wells Fargo and Rhode Island’s economic development agency in March.
Wells Fargo argued in a hearing that no investors have been harmed because all the bondholders have been paid.
The SEC argued was irrelevant that bondholders have been paid. It says it’s seeking to hold accountable those who violate the law.
AUTO THEFTS-HIGH TECH
Police: Laptop used to reprogram, steal more than 100 cars
Houston police say they’ve arrested two men accused of using pirated computer software to steal more than 100 vehicles that likely ended up in Mexico.
Authorities say 24-year-old Michael Arce and 22-year-old Jesse Zelaya focused on new Jeep and Dodge vehicles, which attract big money on the black market in Mexico. The men allegedly used a laptop computer to reprogram the targeted vehicles’ electronic security.
Arce’s lawyer didn’t return a message seeking comment Friday. Court records show Zelaya doesn’t yet have an attorney.
Both were arrested last weekend driving a stolen Jeep Grand Cherokee. Police say their months-long investigation was aided by home-surveillance video showing someone with a laptop walking up to a parked Jeep and quickly driving away.
Zelaya has a court appearance Wednesday. Arce is set to appear in court Aug. 26.
ALABAMA BEER-PRIVACY
Proposed Alabama beer rule prompts privacy concerns
Alabama’s alcohol regulators want to know who is buying beer from one of the state’s craft breweries and taking it home to drink.
The Alabama Alcoholic Beverage Control Board is considering a new rule that would require brewers to collect the name, address, age and phone number from anyone who purchases beer at a brewery for off-premise consumption.
Industry groups are crying foul over the proposed regulation, which they say is an invasion of privacy. They also say it would be a logistical nightmare to collect the information.
The ABC hasn’t explained why it wants personal information on beer purchasers. But it could be used to verify enforcement of a 288-ounce limit on the amount of brew anyone can purchase at one time.
PEOPLE-ADELE
Adele says her credit card was declined at H&M
Adele may be one of pop music’s biggest stars, but she says her fame and fortune didn’t prevent her credit card from being declined at an H&M store.
London’s Daily Mirror reports that Adele told concertgoers at a show in San Jose, California, on Sunday that her card was declined at the fashion retailer earlier that day. She says, however, that she was able to make some purchases with the card at a Sephora makeup store.
The Mirror says Adele told the crowd nobody recognized her but she was nonetheless “mortified.”
H&M spokeswoman Katarina Gustafsson tells The Associated Press the company doesn’t have any information about Adele’s claim and declines comment.
[Source:-WRAL]
