Business Highlights: Economic plan impact, jobless claims – mySA

WASHINGTON (AP) — Democrats call it the “Inflation Reduction Act.” Republicans say it’s a “tax and spending spree.” And everyone has a study they say proves one or the other. Recent bipartisan action in Congress on matters ranging from producing computer chips to expanding NATO isn’t extending to the latest economic package from Democrats. For President Joe Biden, the $739 billion plan can help lower inflation, cut the budget deficit, address climate change and lower medical bills. That’s a message he’s trying to sell amid intense Republican criticism. GOP lawmakers counter that the 15% minimum corporate tax included in the proposal would hit U.S. factories and middle-class workers. They say energy costs will increase, while innovations in health care would decline.

___

Applications for US jobless claims up again last week

WASHINGTON (AP) — More Americans applied for jobless benefits last week as the number of unemployed continues to rise modestly, though the labor market remains one of the strongest parts of the U.S. economy. Applications for jobless aid for the week ending July 30 rose by 6,000 to 260,000 from the previous week’s 254,000, the Labor Department reported Thursday. First-time applications generally reflect layoffs. The four-week average for claims, which evens out the weekly ups and downs, also rose from the previous week, to 254,750. The Labor Department’s jobs report for July, due out Friday, is expected to show that employers added 250,000 jobs last month.

___

Long-term mortgage rates under 5% for 1st time in 4 months

WASHINGTON (AP) — The average long-term U.S. mortgage rate fell below 5% for the first time in four months this week, just after the Federal Reserve jacked up its main borrowing rate in an aggressive effort to get inflation under control. Mortgage buyer Freddie Mac reported Thursday that the 30-year rate tumbled to 4.99% from 5.3% last week. A year ago, the rate was 2.77%. Last week, the Fed ratcheted up its main borrowing rate by three-quarters of a point, the second such increase in less than two months. Higher borrowing costs have cooled the housing market, which has been hot for years.

___

Florida woman’s lawsuit says Equifax error made loan pricier

ORLANDO, Fla. (AP) — A Florida woman has sued Equifax claiming she was denied a car loan because of a 130-point mistake she says was part of a larger group of credit score errors the ratings agency made this spring due to a coding problem. The class action lawsuit was filed in federal court in Atlanta on behalf of Nydia Jenkins and potentially millions of others who applied for credit during a three-week period earlier this year. The Jacksonville, Florida woman says she was forced to accept another loan that was $150 per month more than the one she was turned down for because of the error.

___

Employment market shows signs of cooling amid rate hikes

NEW YORK (AP) — The employment market appears to have lost some of its sizzle, a development that could influence Federal Reserve policy and further raise concerns about an economic recession among investors. Job openings have been edging lower since April as rising inflation tightened its grip on businesses and crimped consumer spending. In June, openings fell to 10.7 million, their lowest levels since September. Openings are still at an historically high level, having never exceeded 8 million in a month prior to a year ago. A tighter job market could be a signal that the economy is slowing enough for the Fed to ease up on interest rate hikes.

___

US stocks end mixed amid earnings, economic updates

NEW YORK (AP) — Stocks closed mixed on Wall Street Thursday as investors continued to review the latest updates on the economy and corporate earnings. The S&P 500 slipped less than 0.1%. The Dow Jones industrials fell and the Nasdaq rose. Energy companies fell, while retailers and technology companies gained ground. Bond yields slipped. Earnings remain in focus for Wall Street. Twinkie maker Hostess and bleach maker Clorox fell after giving investors disappointing profit forecasts. New data from the Labor Department showed more Americans applied for jobless benefits last week as the number of unemployed continues to rise modestly.

___

DoorDash sees record orders in Q2 as it combines with Wolt

SAN FRANCISCO (AP) — DoorDash has reported that it received a record number of customer orders in the second quarter, boosted by resilient demand and its acquisition of Finnish delivery service Wolt Enterprises. DoorDash said orders grew 23% to 426 million in the April-June period, surpassing Wall Street’s expectations. The San Francisco-based delivery company said it hasn’t yet seen much impact from inflation, and it now expects higher order volumes for the full year. DoorDash said its net loss for the quarter more than doubled as it closed the $8.1 billion acquisition of Wolt. DoorDash said stock-based compensation costs and absorbing Wolt’s 6,000 employees hurt its profits.

___

Bank of England predicts recession at the end of the year

LONDON (AP) — The Bank of England has announced its biggest interest rate increase in 27 years. The central bank forecasts that the war in Ukraine will fuel further inflation and tip the U.K. economy into a prolonged recession. Soaring natural gas prices are likely to drive consumer price inflation to 13.3% in October. That’s up from 9.4% in June. That will push Britain into recession later this year. Central banks worldwide are struggling to balance efforts to control inflation while minimizing the fallout for economies that were just beginning to recover from the coronavirus pandemic.

___

The S&P 500 slipped 3.23 points, or 0.1%, to 4,151.94. The Dow Jones Industrial Average dipped 85.68 points, or 0.3%, to 32,726.82. The Nasdaq rose 52.42 points, or 0.4%, to 12,720.58. The Russell 2000 index of smaller companies eased 2.47 points, or 0.1%, to 1,906.45.

Original News Source