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S&P 500 and Nasdaq close at record levels as earnings, data point to consumer strength
Investors praised strong economic data, and earnings reports showed that American consumers were willing to spend. Six of the last seven Nasdaq sessions ended with a record-high, while the S&P 500 had six top finishes since June 27, Preliminary data shows that the S&P 500 rose 35.32 points or 0.56% to 6,299.02, and the Nasdaq Composite rose 157.25 or 0.76% to 20,887.74. The Dow Jones Industrial Average increased by 247.64, or 0.56% to 44,502.42. Wall Street is on a good run after it fell in early April following President Donald Trump’s announcements about Liberation Day tariffs. The week of April 8th was seen as the test for these gains, with several key economic reports being released and the beginning of second quarter earnings season. The economic data and earnings reports of corporations "show that the economy is still very solid and therefore markets were able to grind up this week, with some data supporting where we're going," said Anthony Saglimbene. Chief market strategist at Ameriprise Financial. Data released on Thursday showed that U.S. retails sales rebounded sharply in the month of June. Investors saw renewed consumer confidence and economic momentum after mixed inflation data that showed both a stalling of producer prices and an increase in consumer inflation during the same month. Investors are watching to see if Trump's tariff policy is starting to affect the U.S. economic system. Federal Reserve officials have indicated that they will not cut interest rates until they can assess the inflationary effects of higher import taxes. Adriana Kugler of the Fed said that rate cuts will be on hold until Trump's tariffs start to increase consumer prices. According to CME's FedWatch, traders now place the odds at just over 54% for a rate cut in September. A move in July is almost ruled out. Positive comments from companies that cater to American consumers accompanied the strong retail sales. PepsiCo's stock jumped following a forecast of positive results. Demand for energy drinks, and healthier sodas helped offset concerns over a decline in core profit. United Airlines has gained since the carrier forecast stronger demand in early July. This is a rare positive sign for an industry that's been strained by Trump budget cuts and trade tensions. Delta Airlines and American Airlines are also climbing. The technology stocks, and in particular U.S. chipsmakers, were also boosted after TSMC posted a record quarter profit. The company, which is the world's largest producer of AI chips, said that demand for artificial intelligence has been increasing. TSMC shares listed in the U.S. as well as Marvell and Nvidia gained. Ameriprise's Saglimbene says the TSMC earnings explosion bodes well for chipmakers as well as the technology sector. "Before the Big Tech earnings are released in the next two weeks, the sole source of production for those chips (AI) is stating that their demand is extremely high. The set-up is positive for Big Tech, and that's why technology is dominating the news today," he said. (Reporting from Pranav Kashyap in Bengaluru, Nikhil Sharma and David French in New York. Editing by Maju Sam and David Gregorio.
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Russian crew member of a ship sunk in Yemen by Houthi militants is being treated.
According to a Russian source, the state news agency RIA reported on Thursday that a Russian crew member from a Greek cargo vessel sunk by Houthi terrorists was receiving treatment in Yemen. RIA identified Aleksei Galactikov as the Russian mariner. He was one of the crew members picked up after the sinking by the Yemeni Navy. The report quoted a high-ranking source who said that the man's condition had improved significantly since the attack. Sources in maritime security had reported earlier that 10 mariners, eight crew members and 2 security guards, had been rescued. They were taken to Saudi Arabia. Sources said that all of the crew except one Russian were Filipinos. Sources said that the Iran-aligned Houthis sank the Liberia flagged Eternity C with 22 crew members and three armed guards aboard, after attacking it with sea drones, rocket-propelled grenades and over two consecutive days. A private search for the remaining 15 passengers on board was called off. Since November 2023, the Houthis have launched more than 100 attacks on ships in an apparent act of solidarity to the Palestinians during the Gaza War. (Reporting by ; Editing by Sandra Maler)
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US Transport chief on California high speed rail: "We have to stop it"
U.S. Transportation secretary Sean Duffy is confident that the administration will win any lawsuits challenging the department's decisions to rescind the $4 billion of U.S. Government funding for California's High-Speed Rail Project. "I wish that it had gone to California. We supported the California project but it will cost more than $130 billion, and there is no funding plan or timeline for completion. Duffy told reporters in front of the department's HQ that "we have to pull out the plug". California High-Speed Rail System (California High-Speed Rail System) is a two-phase 800-mile (1,287-km) system that will connect San Francisco with Los Angeles and Anaheim. In the second phase it will extend north to Sacramento, and south to San Diego. Officials in California called the action illegal. The latest clash between the Republican Administration of President Donald Trump and California has been over the transgender athletes' rights, electric vehicle regulations, and the use of National Guard soldiers during protests in Los Angeles. Last month, the Federal Railroad Administration released a 315 page report citing missed timelines, budget shortages and questionable projections of ridership. The San Francisco to Los Angeles project, originally estimated to cost $33 billion by 2020, has now increased from $89 billion up to $128 billion. California High-Speed Rail Authority stated that it is "fast approaching the track-laying stage, with 171 mile under active construction and designing, 15,500 new jobs created, as well as more than 50 major structural structures completed." In 2008, voters approved $10 billion for this project. Former President Joe Biden's Transportation Department awarded the project approximately $4 billion. Biden, in 2021 restored the $929 million grant that Trump had revoked for California's high speed rail system.
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New US Postal Chief confident that agency will be able preserve independence
David Steiner, the new U.S. Postmaster-General, told his employees that he was confident in the Postal Service's ability to operate as an independent agency. Steiner, who began his new tenure on Tuesday, said: "I'm convinced that the strength of the Postal Service is our structure as an independent self-financing entity of the Executive Branch. We operate much like a company but with a mission of public service." He added that he hoped to maintain the Postal Service's independence "far into future." President Barack Obama will be inaugurated in February. Donald Trump USPS is a "tremendous loser for this country," He said that he would consider merging the Postal Service and the U.S. Commerce Department Democrats claimed that this would be a violation of federal law. Former Postmaster general Louis DeJoy Resignation in March . DeJoy was responsible for the restructuring of USPS, which lost money over a period of five years. Steiner said to employees that the Postal Service must be on a realistic course to match revenues to costs on a long-term, consistent basis. Steiner, former CEO of Waste Management and FedEx Board member for May After he was named the new Postal Service chief, postal unions have expressed grave concerns about his connections to a competitor. DeJoy led a dramatic restructuring of the USPS. This included cutting the forecasted cumulative losses over the next decade from $160 billion to $80 billion, even though mail volumes dropped to their lowest level since 1968. First-class stamps have increased in price by From 73 cents to 78 cents On Sunday. Stamp prices have increased by 46% from early 2019, when they cost 50 cents. USPS, a 635,000-strong agency that lost $9.5billion last year, has reduced its workforce earlier this year by 10,000 employees through a voluntary pension program. In May, the USPS reported a net loss of $3.3 billion for the three-month period ending March 31,
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Baghdad claims KRG agreed to resume oil exports to a state-owned oil marketer despite drone attacks
Iraqi Kurdistan's oil exports will resume through a pipeline in Turkey following a two-year stop, the Iraqi federal government announced on Thursday. This was despite drone attacks which have resulted in a shutdown of half of region's production for a fourth consecutive day. Baghdad, Erbil and the semi-autonomous region have been in talks since late February about ending a standoff that had stopped the flow of goods from the north to Turkey's Mediterranean Port of Ceyhan. Baghdad announced that the Kurdistan Regional Government will begin immediately supplying at least 230,000 barrels of oil per day to the state oil marketer SOMO, for export. This is in accordance with a new contract approved by the federal Cabinet. On Thursday, drone attacks continued against Iraqi Kurdistan’s oilfields. Officials pointed to Iran-backed militias for the attacks. The attacks are the first of their kind in the area and coincide with the first attack in seven months by Houthi militants, who are aligned to Iran, on ships in the Red Sea. The region's anti-terrorism service reported that the strike on Thursday was against an oilfield operated in Tawke by Norway's DNO. This was the second strike of the week on a DNO site, which operates Tawke and Peshkabour in the Zakho region bordering Turkey. Security officials said that the drones were coming from areas controlled Iran-backed militias, but no group has claimed responsibility. Two energy officials reported that no casualties were reported but the oil production in the region was reduced by 140,000 to 150,000 barrels per day. Awaiting financial details In a statement, KRG Prime Minster Masrour Bazani stated that the government has approved a joint agreement with the federal government. It is awaiting the financial details. In the past, similar agreements failed to bring about a revival of exports. It is unclear whether this agreement will be successful. Requests for comments from oil producers in Kurdistan including DNO Energy, Gulf Keystone Petroleum, Shamaran Petroleum and Genel Energy did not receive a response immediately. The previous demand was that the production-sharing contract should be left unchanged, and the debt of almost $1 billion settled. Before the pipeline's closure in March 2023, the KRG produced about 435,000 bpd. Both sides have been under pressure from the United States to come to an agreement to resume exports. Iran supports militant groups in Iraq that are a part of the Islamic Resistance, which is a group of ten hardline Shi'ite armed militias with about 50,000 fighters. Since the Gaza War erupted, they have claimed responsibility of dozens missile and drone strikes on Israel and U.S. troops in Iraq and Syria. Hunt Oil, a US-based company, operates the Ain Sifni Oilfield in Dohuk Region. It was attacked Wednesday. Hunt Oil reported that no employees were injured, but the company had to close down its facilities in order to assess damage.
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The US will give higher reviews to solar and wind energy projects
The Trump administration announced on Thursday that the Office of Interior Secretary Doug Burgum will review decisions related to solar energy and wind energy installations on federal lands to stop what they claim has been preferential treatments for renewable energy sources. This increased scrutiny aligns with the pledge of President Donald Trump to reverse the climate change and clean energy policies of his predecessor Joe Biden. The Interior Department stated that the additional reviews will apply to leases, rights-of way, construction and operation plans, and other project permits. The majority of solar and wind power plants are built on private property. Adam Suess, Acting Assistant Secretary of Lands and Minerals Management said in a press release that today's actions "further deliver on President Trump’s promise to tackle Green New Scam and safeguard the American taxpayers’ dollars." "American Energy Dominance" is a result of the U.S. production of reliable baseload electricity, and not by regulatory favoritism for unreliable projects that are dependent solely on taxpayer subsidies or foreign-sourced equipment. (Reporting from Nichola Groom).
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US Auto Safety Agency to shed more than 25% of its employees
According to data seen by Congress, the Trump administration is offering financial incentives to leave the government to more than 25 percent of the U.S. Auto Safety Agency's employees. Under the program, the National Highway Traffic Safety Administration (part of the Transportation Department) is down from 772 to 555 employees by May 31. Federal Highway Administration (FHA) and Federal Transit Administration (FTA) are both losing over 25% of their employees. Rick Larsen expressed concern about the cuts. He questioned how USDOT could "accelerate project delivery and improve safety" with a "decimated workforce." USDOT loses just under 4,100 employees, dropping from 57,000 to 52.862. The Federal Aviation Administration sheds 2,137, falling from 46.250 to 44.208. Sean Duffy, Transportation Secretary, said on Wednesday that the Department has not reduced any safety-critical staff and is actively looking to hire air traffic controllers. USDOT and NHTSA didn't immediately comment. The Transportation Department has not yet confirmed if it will still conduct a layoff programme in addition to the early retirements. NHTSA is currently conducting investigations into self-driving cars and advanced driver assistance systems involving Tesla, Alphabet Waymo, and other companies. Consumer advocacy groups urged lawmakers on Thursday to abandon proposed budget cuts to NHTSA, including cutting the operations and research account of over $10 million, "harming agency's capability to conduct rulemaking and enforcement actions, as well as research and analysis". The law would also reduce nearly $78 millions of supplemental funding from the $1 billion infrastructure law for 2021. The groups said that they were "especially concerned" about the possibility of further forced retirements or firings. These have decimated NHTSA. Reporting by David Shepardson, Editing by Chizu nomiyama and Aurora Ellis
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Waymo extends coverage to Austin, Texas as the robotaxi competition heats-up
Alphabet Waymo, the company's self driving unit, announced on Thursday that it was expanding its service area in Austin, Texas to 90 square mile from 37 square mile earlier. The software giant is trying to protect its position as the top provider in the city against rivals like Tesla. The company announced that Waymo will cover Crestview, Windsor Park Sunset Valley, Franklin Park and other neighborhoods in Austin. Waymo, which has been slowly expanding its self driving taxi service across the U.S. over the past few years, is now widely regarded as the leader in this space. It has around 1,500 vehicles in San Francisco, Los Angeles, Phoenix and Atlanta, among other cities. Tesla, the rival automaker, is trying to catch up. Last month it conducted a trial of about a dozen Model Y SUVs on a restricted area in Austin. Tesla faces an uphill battle to commercialize the technology at a large-scale and overcome regulatory obstacles. It also relies solely on artificial intelligence and cameras, and does not use sensors like radar or lidar as do Waymo and many of its competitors. Shweta Shwevastava is the senior director of Waymo's product management. She said, "Austin continues to be one of the most rapidly growing cities in America, and we do our part to keep up with that growth." Waymo vehicles reached a 100-million-mile milestone this week. They have doubled their mileage in just six months.
WSJ reports that Union Pacific is exploring a deal to purchase Norfolk Southern.
The Wall Street Journal reported that Union Pacific was looking at a deal with rival Norfolk Southern. This merger could be a game changer for the industry and attract intense regulatory scrutiny.
Norfolk's shares grew 4% in extended trade.
The Journal, citing sources familiar with the situation, said that the talks were in an early stage, and there was no guarantee they would lead to a deal or regulatory approval.
Union Pacific and Norfolk Southern have not responded to comments immediately.
The acquisition could create a railroad titan with a combined value of around $200 billion. This would further consolidate an industry which has shrunk over the last several decades from dozens to a few major carriers.
Semafor had reported that Morgan Stanley and Union Pacific were exploring the possibility of an acquisition by a competitor.
Could not confirm immediately either report.
Surface Transportation Board, a regulatory agency that oversees railroads, would have to approve a deal of this magnitude. The deal would also need to be supported by the unions of workers.
The STB approved Canadian Pacific’s $31 billion purchase of Kansas City Southern by 2023, with multiple conditions. This was the most stringent regulatory oversight ever placed on a major rail merger. (Reporting and editing by Devika Syamnath in Bengaluru)
(source: Reuters)