Slump might no longer signal danger
Slump might no longer signal danger
NEW YORK (AP) — One of the oldest trading strategies in the book is showing a yellow flag for stock investors, but analysts say it’s not quite time to sell yet.
The Dow Jones industrial average closed at an all-time high last month, extending a bull market that stretches back more than six years. However, another gauge that tracks airlines, railroad and freight companies — the Dow Jones transportation average — has gone the other way, slumping to a seven-month low at the end of May.
Eat fresher? Subway also dropping artificial ingredients
NEW YORK (AP) — Subway wants to give new meaning to its “eat fresh” slogan by joining the list of food companies to say it’s dropping artificial ingredients.
The sandwich chain told the Associated Press it will remove artificial flavors, colors and preservatives from its menu in North America by 2017.
Sustainable investing: Not a simple choice of good or bad
NEW YORK (AP) — Sometimes it takes more to be good than just not being bad.
That’s the logic behind a shift within the surging sustainable-investing market. For years, the default way to invest responsibly simply was to ignore the companies and industries some find distasteful, such as tobacco companies or casino operators. It’s still the world’s most popular approach, based on total dollars, but a more nuanced approach to sustainable investing is growing even more quickly.
Why World Cup sponsors aren’t bailing out
NEW YORK (AP) — How much scandal is too much scandal?
With billions of dollars at stake and few other ways to tap into the global love of soccer, FIFA sponsors such as Adidas, Coke and McDonald’s likely are to hang onto their marketing deals and try to weather the scandal that tarnished soccer’s governing body.
IMF urges Fed to delay rate increase
WASHINGTON (AP) — What’s the hurry?
The International Monetary Fund on Thursday urged the Federal Reserve to put off raising short-term interest rates until next year because the U.S. economy still needs help.
In its yearly check-up of the United States, the IMF predicted the American economy would grow just 2.5 percent this year, down from its April forecast of 3.1 percent. The downgrade reflects the economy’s stumbling start to the year: Gross domestic product fell the first three months of 2015, tripped up by harsh winter weather and the export-killing strength of the dollar.
Bogus buyout offer for Avon, other companies spurs SEC suit
NEW YORK (AP) — A Bulgarian man losing money in Avon Products used a bogus takeover offer to boost its stock price, a lawsuit filed by the U.S. Securities and Exchange Commission claimed on Thursday.
The lawsuit accuses Nedko Nedev, 37, and four companies of working together to violate securities laws.
The SEC’s suit said one of the companies, PTG Capital, gained access to a website maintained by the regulator and filed an offer for Avon falsely claiming it had proposed buying all the company’s stock for a large premium. As a result, Avon soared as much as 20 percent on May 14, 2015.
Applications for US jobless aid remain low at 276,000
WASHINGTON (AP) — Fewer Americans sought unemployment benefits last week, a sign that job cuts remain low as employers are confident enough in the business outlook to hold onto their staffs.
The Labor Department says applications for unemployment aid dropped 8,000 to a seasonally adjusted 276,000. The four-week average, a less volatile figure, ticked up 2,750 to 274,750.
Applications have been below 300,000, a historically low level, for 13 weeks.
Applications are a proxy for layoffs. The small number of people seeking benefits indicates that Americans are enjoying solid job security.
US productivity fell in first quarter while labor costs up
WASHINGTON (AP) — U.S. worker productivity declined more sharply in the first three months of the year than previously thought while labor costs rose more quickly.
Productivity fell at a 3.1 percent rate in the first quarter, a bigger drop than the 1.9 percent decline estimated a month ago, the Labor Department reported Thursday. Labor costs rose at a 6.7 percent rate in the first quarter, faster than 5 percent rise first estimated.
Average US rate on 30-year mortgage stays at 3.87 percent
WASHINGTON (AP) — Average long-term U.S. mortgage rates were flat to slightly lower this week, remaining near their highest levels so far this year.
Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage was unchanged from a week earlier at 3.87 percent. The rate on 15-year fixed-rate mortgages slipped to 3.08 percent from 3.11 percent.
Despite their climb in recent weeks during the height of the spring home buying season, mortgage rates remain low by historic standards. A year ago, the average 30-year rate was 4.14 percent and the 15-year was 3.23 percent.
US regulators warn: Ads for reverse mortgages can mislead
WASHINGTON (AP) — We’ve seen the TV ad pitches from celebrities like “The Fonz” Henry Winkler and actor and ex-senator Fred Thompson, touting the benefits of reverse mortgages for older homeowners.
Now U.S. regulators are warning: Don’t be fooled. Many ads don’t tell the whole story about reverse mortgages.
The Consumer Financial Protection Bureau said Thursday that a study it conducted with older homeowners found they were given the false impression by the ads that reverse mortgages are a government benefit and ensure consumers can stay in their homes for the rest of their lives.