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Business Highlights: Mixed Economy Signals, GM Revenue

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US Economy Sending Mixed Signals: This Is All Meaning

Washington (AP) — The US economy is trapped in a messy and painful place. Some things are confusing. Growth appears to be booming, home sales are plummeting, and economists warn of a potential recession in the future. But consumers continue to spend, businesses continue to make money, and the economy continues to add hundreds of thousands of jobs each month. In the midst of that, prices have accelerated to their 40-year highs, and the Federal Reserve is desperately trying to put out the flames of inflation at high interest rates. As a result, borrowing is more expensive for households and businesses. The Federal Reserve wants to withdraw the central bank’s triple Axel. It slows the economy enough to curb inflation without causing a recession.

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Biden fights recession story as major economic reports approach

Washington (AP) — President Joe Biden wants to convince skeptical people that the United States isn’t really heading into recession. He is sending the message towards the release of an important report on the health of the economy as a whole. Thursday’s Department of Commerce will release new GDP figures. Top forecasts predict that this number will be negative for the second consecutive quarter. This is an informal signal that the country is in recession. The Biden administration has preemptively told voters not to judge the economy on the basis of GDP or inflation alone. Republicans see political turmoil in the water. They suggest that GDP reports show that the economy is collapsing.

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Bills to boost the semiconductor industry pass major Senate tests

Washington (AP) —The Senate is pushing for a $ 280 billion bill designed to boost the U.S. semiconductor industry and accelerate high-tech research that its backers say will be important to the economy in the coming decades. rice field. The Senate needed 60 votes to advance the bill, with 64-32 votes. The bill is currently on the runway for a final pass in the Senate later this week. House will also feature the package this week. The White House has led the bill’s support, along with industry leaders who say they need government subsidies to compete with other countries that are spending billions of dollars to seduce semiconductor makers.

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Google parents report slowest quarterly growth in two years

San Francisco (AP) — Google’s revenue growth in the last quarter slowed to its slowest pace in two years as advertisers curtailed spending in fear of a recession. The return, reported Tuesday by Google’s parent company Alphabet, is the latest sign that the tailwind driving big tech companies has shifted in a challenging new direction during the pandemic. For Alphabet, revenue for the April-June period totaled $ 69.7 billion, up 13% from the same period last year. This was the lowest growth rate since Alphabet suffered a decline in revenue from April to June 2020.

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Microsoft blames financial hardship for failing to meet profit targets

Redmond, WA (AP) — Microsoft reported on Tuesday that it had a fourth-quarter profit of $ 16.7 billion, or $ 2.23 per share. This is below analysts’ expectations of $ 2.29 per share. in recent years. Sales for the April-June period were $ 51.9 billion, up 12% from last year. Analysts were looking for $ 52.94 billion in revenue, according to FactSet. The company has had many “evolving macroeconomics” that have affected its performance, including a pandemic-related production suspension in China, a deterioration in the PC market, reduced advertising spending, and the war in Ukraine that led to Microsoft’s expansion. Condemned the situation and other unexpected items. Stop business in Russia.

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Suffering from a shortage of chips and others, GM’s profits fell 40% in the second quarter

Detroit (AP) — General Motors’ second-quarter net profit fell 40% year-over-year as a shortage of computer chips and components disrupted factory production and the company’s US sales fell by more than 15%. .. Detroit carmakers said they made $ 1.67 billion between April and June. This was partly due to the failure to deliver 95,000 vehicles during the quarter as it was manufactured without parts. Last year it was $ 2.79 billion. The company said it was below Wall Street’s estimate of $ 1.27 and achieved adjusted $ 1.14 per share. According to FactSet, revenue for the quarter was $ 35.76 billion, above the estimated $ 33.9 billion. Like other automakers, GM has been forced to slow down its factories since late 2020, primarily due to a global shortage of semiconductors.

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Severe news from Wal-Mart sends lower US market

New York (AP) — Wall Street shares have fallen on Tuesday after Wal-Mart warned that inflation was hurting American consumers’ purchasing power. The S & P 500 Index fell 1.2%, the Dow Jones Industrial Average fell 0.8%, and the Nasdaq Composite Index fell 1.9%. Wal-Mart’s share price plummeted after retail giants lowered its earnings outlook for the second quarter and the full year, and rising food and gas prices forced shoppers to cut more profitable discretionary items, especially clothing. He said he couldn’t get it anymore. Technology and telecommunications stocks were also one of the biggest weights on the market.

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Consumer confidence fell for the third straight month in July

Washington (AP) — US consumer confidence fell again in July as concerns over high food and gas prices continued to weigh on Americans. The Conference Board announced on Tuesday that the consumer confidence index fell from 98.4 in June to 95.7 in July. This is mainly due to consumer anxiety over 40 years of high inflation. The Business Research Group’s current status index, which measures consumer ratings for current business and labor market conditions, fell from 147.2 to 141.3. Inflation in the United States surged to a new 40-year high in June, putting pressure on households and pressured the Federal Reserve to aggressively raise interest rates. This tends to increase the risk of recession.

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The S & P 500 fell 45.79 points (1.2%) to 3,921.05. The Dow Jones Industrial Average fell 228.50 points (0.7%) to 31,761.54. Nasdaq was down 220.09 points (1.9%) to 11,562.57. The Russell 2000 Index for SMEs was down 12.53 points (0.7%) to 1,805.25.

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