Business Highlights: Fed’s Powell notes easing inflation; Walmart ditches Musk’s X
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Fed’s Powell notes inflation is easing but downplays discussion of interest rate cuts
WASHINGTON (AP) — Inflation is slowing steadily, but it’s too early to declare victory or to discuss when the Federal Reserve might cut interest rates, Chair Jerome Powell said. Powell noted that consumer prices, excluding volatile food and energy costs, rose at just a 2.5% annual rate in the past six months. That’s not far above the Fed’s 2% inflation target. Still, more progress is needed, Powell said. He added, “It would be premature to conclude with confidence” that the Fed has raised its benchmark interest rate high enough to fully defeat high inflation. Nor is it time to “speculate on when policy might ease,” Powell said, referring to the possibility of cuts in the Fed’s benchmark interest rate.
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Stock market today: Wall Street gains ground following its best month in more than a year
Stocks gained ground on Wall Street as the market comes off its best month in more than a year. The S&P 500 rose 0.6% Friday, marking its fifth straight week of gains. The Dow Jones Industrial Average rose 294 points and the Nasdaq composite added 0.6%. In company news, Ulta Beauty soared 10.8% after reporting better-than-expected results for its latest quarter and raising its forecast. Gainers outnumbered decliners by roughly 6-to-1 on the New York Stock Exchange. Investors entered December on track to close out the year with solid gains. Treasury yields and crude oil prices fell.
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New US rules, aimed at curbing China, could make it harder for EV buyers to claim a full tax credit
WASHINGTON (AP) — Americans could have a harder time finding electric vehicles that qualify for a full $7,500 federal tax credit under new rules being proposed. The Treasury and Energy Departments unveiled the rules Friday. They limit electric vehicle buyers from claiming the full tax credit if they purchase cars containing battery materials from China and other countries that are considered hostile to the United States. But the rules could slow consumer acceptance of electric vehicles just as Biden is trying to ramp up sales to help meet his goal to cut planet-warming greenhouse gas emissions in half by 2030.
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Federal Reserve’s preferred inflation gauge shows price pressures continuing to cool
WASHINGTON (AP) — The Federal Reserve’s preferred inflation measure cooled last month, the latest sign that price pressures are waning in the face of high interest rates and moderating economic growth. Prices were unchanged from September to October, down from a 0.4% rise the previous month. Compared with a year ago, prices rose 3% in October, below the 3.4% annual rate in September. It was the lowest year-over-year inflation rate in more than 2 1/2 years. Excluding volatile food and energy costs, increases in so-called core prices also slowed. They rose just 0.2% from September to October, down from a 0.3% increase the previous month. Compared with 12 months ago, core prices rose 3.5%, below the 3.7% year-over-year increase in September.
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Pfizer nixes more study of twice-daily obesity pill treatment that made many patients nauseous
Pfizer shares sank Friday when the drugmaker announced that it was abandoning a twice-daily obesity treatment after more than half the patients in a clinical trial stopped taking it. The New York company will focus instead on a once-daily version of the pill, danuglipron, instead of starting a late-stage study of the other version. Late-stage studies are usually the last and most expensive trials a drugmaker undertakes before seeking regulatory approval. Obesity treatments are one of the hottest and more lucrative areas of medicine. Pfizer rivals Novo Nordisk and Eli Lilly already have injectable drugs on the market.
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Thousands of fake Facebook accounts shut down by Meta were primed to polarize voters ahead of 2024
WASHINGTON (AP) — Meta says it has found and disabled thousands of fake Facebook accounts linked to China that were used to spread politically partisan content in the United States before next year’s election. The accounts disclosed Thursday were designed to look as though they were run by everyday Americans. The network reposted content from the right and the left in an apparent effort to inflame political tensions. Meta’s executives said Thursday they’re guarding against similar efforts to interfere with elections next year in the U.S. and elsewhere. Critics say Meta hasn’t done enough to address its role in spreading misinformation and hate speech. California-based Meta hasn’t publicly linked the network to China’s government.
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Congressmen ask DOJ to investigate water utility hack, warning it could happen anywhere
HARRISBURG, Pa. (AP) — Three members of Congress are asking the U.S. Justice Department to investigate how hackers breached a water utility system near Pittsburgh. The attack prompted the nation’s top cyberdefense agency to warn other water and sewage-treatment utilities they may be vulnerable. In a letter released Thursday, the Pennsylvania lawmakers say Americans must know their drinking water and other basic infrastructure is safe. The Municipal Water Authority of Aliquippa, Pennsylvania, was the system targeted. An electronic calling card left by the hackers suggests they picked their target because it uses components made by an Israeli company.
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Walmart latest big advertiser to pull out of Musk’s X amid widening concerns over hate speech, reach
SAN FRANCISCO (AP) — Walmart is the latest company to join the glowing flock of major advertisers to pull spending from X, Elon Musk’s beleaguered social media company, amid concerns about hate speech — as well as reaching a sizeable audience on the platform. Walmart said in a statement it’s not advertising on X because it “found some other platforms better reach our customers.” The announcement comes two days after Musk went on an expletive-ridden rant about companies halting ads in response to antisemitic and other hateful material. Musk said advertisers pulling out are engaging in “blackmail” and, using a profanity, essentially told them to go away.
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The S&P 500 rose 26.83 points, or 0.6%, to 4,594.63. The Dow Jones Industrial Average rose 294.61 points, or 0.8%, to 36,245.50. The Nasdaq composite rose 78.81 points, or 0.6%, to 14,305.03. The Russell 2000 index of smaller companies rose 53.62 points, or 3% to 1,862.64.