Business Highlights: Rising US Prices, Oil Company Profits

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Inflation and wage data suggest US prices will continue to rise

WASHINGTON (AP) — Inflation rose in June and average worker wages accelerated in the spring, signs that Americans likely won’t feel any relief from rising prices anytime soon and that the Federal Reserve will feel forced to further increase borrowing costs. An inflation gauge closely watched by the Fed jumped 6.8% in June from a year earlier, the biggest such jump in four decades. Also month-on-month, prices rose 1% in June, the biggest month-on-month increase since 2005. Friday’s figures underscored the persistence of inflation that is eroding Americans’ purchasing power, weakening their confidence in the economy and threatening Democrats in Congress in the run-up to November’s midterm elections.

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Record profit for major oil drillers as prices soar

NEW YORK (AP) — Oil companies have posted record profits in recent months. They were benefiting from high energy costs at a time when Americans were struggling to pay for gas, food and other basic necessities. Consumers faced high fuel prices not only at the pump, but also in delivery costs, driving up the cost of everything. Exxon and Chevron reported record profits in the second quarter. When a gallon of gasoline topped $5 last month, President Joe Biden blamed major oil producers, saying “Exxon made more money than God this year.”

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The Senate agreement should facilitate the purchase of electric vehicles

DETROIT (AP) — Senate Democrats’ surprise agreement on a cut bill to support families, boost infrastructure and combat climate change is likely to boost sales of electric vehicles. The measure agreed to by Majority Leader Chuck Schumer and holdout Sen. Joe Manchin would give electric vehicle buyers a $7,500 tax credit starting next year, through the end of 2032. There’s also a new $4,000 credit for those who buy electric vehicles. used electric vehicles. Vehicles must be assembled in North America and there are limits on buyers’ annual income. There are also limits on the sticker prices of new electric vehicles and a $25,000 limit on the price that can be paid for used electric vehicles.

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Stocks rise again, close best month since November 2020

NEW YORK (AP) — Stocks ended higher on Wall Street on Friday as investors wrapped up the best month for the S&P 500 since November 2020. New data showed inflation rose to the highest in four decades last month, but confidence was buoyed by positive earnings news. from tech giants Apple and Amazon, as well as oil giants Exxon and Chevron. The tech-heavy Nasdaq ended July with the biggest gains since April 2020. Stocks gained momentum this month, buoyed by better-than-expected corporate earnings and falling bond yields, which retreated after soaring for much of the year. this year due to expectations of higher Interest rates.

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Inflation reaches a record 8.9% in the euro area, but the economy grows

LONDON (AP) — Inflation in European countries that use the euro soared to another record in July, fueled by higher energy prices triggered in part by the war in Ukraine. However, the economy achieved better-than-expected, albeit modest, growth in the second quarter. The European Union’s statistics agency said on Friday that annual inflation in the 19 eurozone countries rose to 8.9% in July, from 8.6% in June. Inflation has been at its highest level since euro recording began in 1997. The economy grew from April to June, expanding 0.7% compared to the previous quarter. Economists expect that to be the last bit of good news and the region to slip into recession later this year.

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California aims to make its own brand of insulin at a lower price

SACRAMENTO, Calif. (AP) — California plans to make its own insulin. The state budget includes $100 million to develop three types of insulin products and invest in a manufacturing plant. The state would contract with a private company to manufacture the insulin under the CalRx brand. This wouldn’t be the first time California has made its own medicine. The state also makes the only treatment for the rare disease infant botulism. But millions of people suffer from diabetes. Advocates say the health care industry has conspired to keep the price of insulin high. People with type 1 diabetes need insulin to survive.

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Sony sees rising profits despite declining interest in video games

TOKYO (AP) — Sony reported profit rose 3% in the latest quarter, overcoming production setbacks from COVID-19 shutdowns in Shanghai and a trend away from video games as pandemic restrictions ease. decreased elsewhere. Tokyo-based Sony’s April-June profit totaled 218 billion yen, or $1.6 billion. Quarterly sales rose 2% on strong demand for music, including Harry Styles’ “Harry’s House” and Doja Cat’s “Planet Her.” In movies, Sony expects “Bullet Train,” starring Brad Pitt and opening is scheduled for August, do well at the box office. Chief Financial Officer Hiroki Totoki says people are gambling less as COVID restrictions ease.

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P&G sales up in Q4 but cautious on outlook for fiscal 2023

NEW YORK (AP) — Procter & Gamble’s sales rose 3% in the fiscal fourth quarter, but the world’s largest consumer products maker gave a lackluster sales forecast for fiscal 2023 as it grapples with rising prices. commodity costs and freight. P&G revenue rose to $19.52 billion from $18.9 billion during the quarter, helped by higher prices. This exceeded the $19.39 billion that was sought by analysts surveyed by Zacks Investment Research. For fiscal 2023, P&G expects sales to be flat up 2% from the prior year.

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The S&P 500 rose 57.86 points, or 1.4%, to 4,130.29. The Dow Jones Industrial Average advanced 315.50 points, or 1%, to 32,845.13. The Nasdaq gained 228.09 points, or 1.9%, to 12,390.69. The Russell 2000 index of smaller companies rose 12.20, or 0.7%, to 1,885.23.

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