Business Highlights: Americans bump up spending in June; US firms helped keep Russian oil flowing

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Americans bump up spending in June as inflation eases in a strong jobs market

NEW YORK (AP) — Americans increased their spending last month as inflation eased in many areas, and the job market remained remarkably strong. Retail sales rose 0.2% from May to June, following a revised 0.5% increase the previous month, the Commerce Department reported Tuesday. The figure matched the pace of consumer inflation in June from the prior month, underscoring that shoppers are just about keeping up with pricing pressures. While the headline number of 0.2% was a bit weaker than expected, economists focused on the number that excludes volatile autos, gas, building materials and food services, which rose a solid 0.6% in June. That 0.6% figure is what is fed into the government’s measure of economic growth, and it’s a fairly strong spending number.

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Stock market today: Wall Street’s AI frenzy and strong bank profits send stocks higher

NEW YORK (AP) — Wall Street’s frenzy around artificial intelligence helped pushed stocks to their best level in more than 15 months. The S&P 500 rose 0.7% Tuesday to its highest finish since early April 2022. The Dow added 366 points, or 1.1%, and the Nasdaq composite climbed 0.8%. Microsoft was the biggest force pushing the S&P 500 higher with a 4% gain after announcing the pricing for some artificial-intelligence services. Stocks in the financial industry also drove the market higher after reporting stronger profits for the spring than expected. Charles Schwab, Bank of America and Morgan Stanley all rallied more than 4%.

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Liberty and tacos for all: Taco Bell prevails as Taco John’s abandons trademark to ‘Taco Tuesday’

CHEYENNE, Wyo. (AP) — Taco Bell has rung up a win in its quest to make “Taco Tuesday” free of trademark restrictions. On Tuesday, Taco John’s formally abandoned its longstanding claim to sole use of the phrase amid a challenge from its fast-food rival. In a two-page filing with the U.S. Patent and Trademark Office, Cheyenne-based Taco John’s gave up the “Taco Tuesday” trademark in 49 states, ending a high-profile spat with Taco Bell. But the dispute looks to keep simmering in New Jersey, where a restaurant promises to keep fighting Taco Bell over the exclusive right to “Taco Tuesday” promotions in that state.

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An American economist is getting a top EU job. France’s Macron isn’t happy about it

BRUSSELS (AP) — French President Emmanuel Macron isn’t happy that the European Union head office plans to hire an American expert as its chief competition economist. He is asking why no one could find a “great European researcher with academic qualifications″ to do the job. The EU’s executive Commission announced last week that it had appointed Yale economics professor Fiona Scott Morton as chief competition economist in its department tasked with ensuring fair playing ground for companies. Macron insisted that he has nothing against Scott Morton herself. But he suggested her experience advising big companies could pose a conflict of interest, and said hiring a non-EU citizen shouldn’t be allowed.

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Facebook parent Meta makes public its ChatGPT rival Llama

MENLO PARK, Calif. (AP) — Facebook parent company Meta Platforms has built an artificial intelligence system that rivals the likes of ChatGPT and Google’s Bard but it’s taking a different approach: releasing it for free. Meta CEO Mark Zuckerberg said Tuesday it is partnering with Microsoft to introduce the next generation of its AI large language model and making the technology known as Llama 2 free for research and commercial use. Much like tech peers Google and Microsoft, the social media company has long had a big research team of computer scientists devoted to advancing AI technology. But it’s been overshadowed as the release of ChatGPT sparked a rush to profit off of “generative AI” tools.

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After devastating 2022 hurricane season, AAA not renewing some insurance policies in Florida

ORLANDO, Fla. (AP) — AAA says it won’t renew a small percentage of homeowner and auto insurance policies in hurricane-wracked Florida, joining other insurers in limiting their exposure in the Sunshine State. AAA said Tuesday it wasn’t leaving Florida, but last year’s devastating hurricane season saw an “unprecedented” rise in reinsurance rates. The company refused to say how many Florida policies won’t be renewed. A week ago, Farmers Insurance said it was discontinuing new coverage of Florida auto and home policies. Florida has struggled to keep the state insurance market stable ever since 1992’s powerful Hurricane Andrew. Risks for carriers have also grown as climate change boosts the strength of hurricanes.

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Bank of America 2Q net income jumps 19%, extending the rally for big banks

Bank of America said its profits grew 19% last quarter, the latest of the big banks to see its bottom line boosted by higher interest rates. On a per-share basis, BofA earned 88 cents, topping Wall Street’s forecast. Bank of America’s net interest income rose 14% to $14.2 billion in the second quarter thanks to higher interest rates and larger loan balances. Separately, regional bank PNC Financial said it’s paying out more interest on deposits as banks compete for customer funds. Investment banking giant Morgan Stanley saw profit fall in the latest quarter, but the result still beat expectations.

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From compensating travelers to the pilot retirement age, Congress takes up aviation bill

Congress will vote this week on legislation that will shape the agency responsible for safely managing the nation’s airspace and regulating its airlines. Lawmakers will fight over the Federal Aviation Administration’s rules on everything from how pilots are trained to how long they can work and whether travelers will get more compensation for canceled and delayed flights. Congress faces a Sept. 30 deadline to act on the legislation. The House is expected to vote this week on a bill that emerged from the transportation committee with bipartisan support.

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Top US firms supplied equipment to keep Russian oil flowing after Ukraine invasion

America’s top oilfield services companies sold millions of dollars in vital oil equipment to Russia after the invasion of Ukraine. The largest, SLB, maintained and even grew its business after others eventually departed. SLB announced late last week it would stop exporting equipment to Russia as The Associated Press prepared to publish a report on the companies’ Russian operations. Customs data vetted by AP showed Russia imported more than 5,500 items worth more than $200 million from the American companies. The technology helped keep some of the world’s most challenging oilfields operating in a sector that accounts for almost half of Russia’s revenue. An SLB spokeswoman said the company operated within evolving international sanctions.

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The S&P 500 rose 32.19 points, or 0.7%, to 4,554.98. The Dow Jones Industrial Average rose 366.58 points, or 1.1%, to 34,951.93. The Nasdaq composite rose 108.69 points, or 0.8%, to 14,353.64. The Russell 2000 index of smaller companies rose 24.80 points, or 1.3%, to 1,976.07.

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