Stocks slip…Retail sales up…Business inventories, sales rise

NEW YORK (AP) — Stocks are lower in early trading on Wall Street, heading for the market’s first weekly loss since the start of August. Energy and utility companies are leading the declines. Treasurys fell after news that retail sales in August rose faster than economists predicted, reinforcing expectations that the Federal Reserve may start hiking interest rates sooner than expected.

WASHINGTON (AP) — Americans may be losing their reluctance to spend. The Commerce Department says seasonally adjusted retail sales rose 0.6 percent in August from the month before, and July’s sales were revised upward from flat to a 0.3 percent increase. Motor vehicles accounted for roughly half of the August increase. Buying also picked up at restaurants and for furniture, electronics, sporting goods and building materials. The gains were partially offset by falling sales at gasoline stations and department stores.

WASHINGTON (AP) — The Commerce Department says stockpiles held by U.S. businesses rose by a moderate amount in July while sales increased at the fastest pace in three months. Stockpiles increased 0.4 percent, while sales increased 0.8 percent, the best showing since a similar rise in April. Economists say the solid gains in business sales will give businesses confidence to boost their restocking efforts to meet the rising demand. Inventory increases spur more orders to factories and stronger economic activity.

WASHINGTON (AP) — The Obama administration is sanctioning Russia’s largest bank as part of a new round of financial penalties aimed at punishing Moscow for its support of separatists in Ukraine. The U.S. is also expanding sanctions targeting Russia’s energy and defense sectors. The penalties come hours after the European Union enacted its own sanctions on Russian banks, arms makers and the country’s biggest oil company.

DETROIT (AP) — Ford is recalling about 74,000 gas-electric hybrid SUVs in the U.S. and Canada to fix a stalling problem. The recall covers Ford Escapes from the 2005 through 2008 model years and Mercury Mariners from 2006 through 2008. The company says the coolant pump for the hybrid system could fail, causing electronics to overheat. That can shut down the engine, increasing the risk of a crash. Dealers will replace the coolant pump for free.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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