FINANCIAL & BUSINESS NEWSLast Update: Tuesday, July 29, 2014 1:04 PM EDT
from Eyewitness News Online
US consumer confidence jumps to 90.9 in July
U.S. consumers are more confident about the economy than they have been in nearly seven years.
The Conference Board's confidence index rose to 90.9 in July from an upwardly revised 86.4 in June. The July reading is the highest since October 2007, two months before the Great Recession officially began.
It was the third straight increase in the index. Economists said that strong job growth has helped boost consumers' assessment of current conditions and also improved their outlook on jobs and the economy.
Conference Board economist Lynn Franco says that the improvements in consumers' confidence and expectations about the future indicate that the recent strengthening in overall economic growth should continue in the second half of the year.
US home price gains slow for 6th straight month
U.S. home prices rose in May from a year earlier, but at the weakest pace in 15 months.
The Standard & Poor's/Case-Shiller 20-city home price index increased 9.3 percent in May from 12 months earlier. That's down from 10.8 percent in the previous month and the smallest annual gain since February 2013.
Yearly price gains slowed in 18 of the 20 cities. They accelerated in Charlotte, N.C., and were flat in Tampa, Fla.
Existing home sales have picked up, rising to an eight-month high in June. But they are still 2.3 percent below last year's level. And an index of signed contracts dipped in June, suggesting sales will cool.
Home sales have been restrained by weak wage gains and tight credit, particularly for first time buyers.
Pfizer's 2Q profit sinks 79 pct but tops forecasts
Pfizer's second-quarter earnings plunged 79 percent from last year, when the world's second-largest drugmaker booked a business spinoff gain of more than $10 billion. The latest results still edged analyst expectations.
Pfizer says it earned $2.91 billion in the quarter. That compares with earnings of $14.1 billion last year.
Revenue slipped 2 percent to $12.77 billion, while analysts forecast $12.47 billion, on average.
Pfizer Inc. is best known for creating medicines for the masses, including the erectile dysfunction pill Viagra, the Prevnar vaccine against pneumonia and related infections and the now-generic cholesterol fighter Lipitor, which was once the world's best-selling drug.
Merck 2Q profit more than doubles
A big one-time gain and a tax benefit have helped drugmaker Merck more than double its second-quarter profit, raise the lower end of its profit forecast and easily top analysts' expectations.
The maker of popular Type 2 diabetes pill Januvia and cholesterol medicines Vytorin and Zetia says net income increased to $2 billion from $906 million in the same quarter a year earlier.
The world's fourth-biggest drugmaker reports revenue of $10.93 billion, down 1 percent from $11.01 billion a year ago.
Sales of Merck's prescription drugs totaled $9.09 billion, down 2 percent as cheaper generic competition cut into sales of some older medicines and sales of its hepatitis C drugs was hurt by new brand-name competition.
UPS 2Q profit drops, lowers outlook on spending
UPS is lowering its outlook for the year as it announces plans to spend more on technology and other enhancements to improve service during peak season.
UPS says it will spend $175 million on upgrades that include expanded operations on the day after Thanksgiving and sped-up deployment of software designed to help drivers find the quickest route to a destination.
During last year's holiday season, a big increase in online shopping and a crush of last-minute orders by shoppers who jumped on offers of free shipping caught UPS by surprise. The company was forced to hire extra workers to handle the rush, but some gifts still arrived late.
As a result of the boost to spending, UPS has lowered its full-year outlook for adjusted earnings to $4.90 to $5 a share. It previously expected to earn around $5.05 a share.
UPS also says second-quarter profit declined to $454 million from $1.07 billion in the same quarter a year earlier.
Suzuki recalls nearly 26,000 cars for fire risk
Suzuki is recalling nearly 26,000 midsize cars in the U.S. because the daytime running light modules could overheat and cause a fire.
The recall covers the Verona from the 2004-2006 model years. It's an expansion of an earlier recall of the Forenza and Reno.
All the cars were made by General Motors in Korea. Suzuki says in documents filed today with government safety regulators that a transistor in the modules can overheat in the instrument panel. That could melt the module, which could cause a fire. Suzuki says there were no fires reported in Verona models.
Dealers will replace the modules for free. Owners will be notified later.
American Suzuki Motor Corp. filed for Chapter 11 bankruptcy protection in November of 2012 and stopped selling automobiles in the U.S.
China investigating Microsoft in monopoly case
China's anti-monopoly agency says it's investigating Microsoft, stepping up regulatory pressure on foreign technology companies.
The State Administration for Industry and Commerce says it opened a case in June after complaints Microsoft improperly failed to publish all documentation for its Windows operating system and Office software. It says investigators visited Microsoft's China headquarters in Beijing and branches in three other cities this week.
Foreign technology suppliers face growing pressure from Chinese regulators, who have launched anti-monopoly investigations and announced plans to examine products for security flaws.
Microsoft has not responded to a request for comment.
Soldiers get $92M in debt relief under settlement
Thirteen states have settled an investigation into improper lending with a court agreement that's expected to provide $92 million in debt relief for some 17,800 U.S. military personnel.
New York Attorney General Eric Schneiderman says deceptive practices by Rome Finance Co. included failing to accurately disclose charges and interest rates and helping retailers inflate prices, with repayments take from soldiers' paychecks.
Rome Finance has recently done business as Colfax Capital Corp. and Culver Capital LLC.
The states involved are Colorado, Delaware, Florida, Georgia, Kentucky, Indiana, Iowa, Massachusetts, Michigan, New York, North Carolina, Tennessee and Vermont.
Authorities say military personnel will keep financed merchandise like computers and gaming systems with debt forgiven, including $2.2 million for more than 550 New York residents.
Waste Management selling subsidiary for $1.94B
Waste Management is selling a subsidiary to Energy Capital Partners for $1.94 billion as part of its effort to focus on its core business.
It's selling Wheelabrator Technologies, which owns or runs 17 waste-to-energy facilities and four independent power-producing plants in the U.S. The business also has four ash monofill landfills, three transfer stations and an ongoing development and construction project in the U.K. Wheelabrator's 2013 revenue totaled about $845 million.
Houston-based Waste Management Inc. says it plans to use proceeds from the sale to buy assets related to its core business and for stock repurchases.
The deal is targeted to close later this year. It still needs approval from the Federal Energy Regulatory Commission.
Crayola to open family attraction in Orlando
Crayon manufacturer Crayola is building a family attraction in Florida.
The company says Crayola Experience Orlando will open next summer at The Florida Mall. It will be similar to the attraction Crayola now operates in its eastern Pennsylvania hometown of Easton.
Crayola Experience Orlando will feature 25 hands-on activities in 70,000 square feet of space. One attraction will let children create their own unique crayon with a personalized wrapper. Another will let kids appear on their own coloring page.
Crayola is a subsidiary of Kansas City, Missouri-based Hallmark Cards Inc.
It says it chose Orlando because it's a top family destination. The area has three major theme park resorts, Walt Disney World, Universal Orlando Resort and SeaWorld. But it has many more specialty parks and attractions, some built around children's brands.
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