Profit companies

Company Highlights: US Price Rise, Oil Company Earnings

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Inflation and wage data suggest US prices will continue to rise

WASHINGTON (AP) — Inflation jumped in June and average worker wages accelerated in the spring — signs that Americans are unlikely to feel any relief from higher prices anytime soon and that the Federal Reserve will feel pressured further increase borrowing costs. An inflation gauge closely watched by the Fed jumped 6.8% in June from a year ago, the biggest such jump in four decades. Also month-over-month, prices jumped 1% in June, the biggest month-over-month rise since 2005. Friday’s figures underlined the persistence of inflation which is eroding the purchasing power of Americans, undermining their confidence in the economy and threatening Democrats in Congress ahead of November’s midterm elections.

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Unprecedented profit for big oil drillers as prices soar

NEW YORK (AP) — Oil companies have been swimming in record profits in recent months. They benefited from high energy costs at a time when Americans struggled to afford gasoline, food and other basic necessities. Consumers have had to deal with high fuel prices not only at the pump, but also delivery costs, driving up the cost of everything. Exxon and Chevron both posted record second-quarter profits. When a gallon of gasoline soared above $5 last month, President Joe Biden blamed major oil producers, saying “Exxon made more money than God this year.”

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Senate agreement should make it easier to buy electric vehicles

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

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Stocks rally again and close best month since November 2020

NEW YORK (AP) — Stocks ended higher on Wall Street on Friday as investors closed the best month for the S&P 500 since November 2020. New data showed inflation jumped the most in four decades on month, but sentiment 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 have gained momentum this month, fueled by better-than-expected corporate earnings and falling bond yields, which fell after climbing much of this year on expectations of an interest rate hike.

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Inflation hits a record 8.9% in the euro zone, but the economy is improving

LONDON (AP) — Inflation in European countries using the euro hit a new high in July, pushed by rising energy prices due in part to the war in Ukraine. But the economy still managed better-than-expected, albeit weak, growth in the second quarter. The European Union’s statistics agency said on Friday that annual inflation in the 19 eurozone countries reached 8.9% in July, from 8.6% in June. Inflation hit its highest level since the euro began recording in 1997. The economy grew from April to June, growing 0.7% from the previous quarter. Economists expect this to be the last glimmer of good news and the region to tip into recession later this year.

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California wants 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 facility. The state would contract with a private company to manufacture the insulin under the CalRx brand. It wouldn’t be the first time California has made its own drug. The state also manufactures the only treatment for the rare disease of infant botulism. But millions of people suffer from diabetes. Proponents 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 profits rise despite declining interest in video games

TOKYO (AP) — Sony said its profit edged up 3% last quarter, weathering production setbacks from COVID-19 lockdowns in Shanghai and a trend away from video games amid restrictions. pandemic have eased 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’s House” by Harry Styles and “Planet Her” by Doja Cat. In movies, Sony hopes “Bullet Train,” starring Brad Pitt and slated for release in August, will do well at the box office. CFO Hiroki Totoki says people are gambling less as COVID restrictions ease.

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P&G sales climb in fourth quarter, but cautious on fiscal 2023 outlook

NEW YORK (AP) — Procter & Gamble 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 faces rising raw material and freight costs. P&G’s revenue climbed to $19.52 billion from $18.9 billion in the quarter, helped by higher prices. That exceeds the $19.39 billion that analysts polled by Zacks Investment Research were looking for. For fiscal 2023, P&G expects sales to remain flat at 2% year-over-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 Small Business Index rose 12.20, or 0.7%, to 1,885.23.