NEW YORK (AP) — Stocks are higher in morning trading. Global investors are shaking off news that the world’s third largest economy, Japan, shrank at 6.8 percent annual rate in the second quarter, thanks in part to a sales tax hike. The contraction was expected and economists expect Japanese consumer spending to pick up in the coming months. Japan’s Nikkei closed with a gain today as did most other Asian markets. Europe’s key indexes are higher, while the Dow has been up 30 to 50 points in the first hour of trading. The broader indexes are also seeing modest gains.
WASHINGTON (AP) — Retail sales were flat in July. The Commerce Department says seasonally adjusted sales rose a statistically insignificant $161 million. Spending dipped at auto dealers and department stores last month, but grocery stores, gasoline stations, restaurants, clothiers and building material stores all saw gains. The figures suggest restrained wage growth is making Americans are hesitant to spend.
WASHINGTON (AP) — Businesses added to their stockpiles at a slightly slower pace in June compared with May. The Commerce Department says stockpiles grew 0.4 percent in June on a seasonally adjusted basis, while sales rose 0.3 percent. Sales have slowed after rapid gains from February through April.
CINCINNATI (AP) — Macy’s is reporting a 4 percent increase in earnings in its fiscal second quarter. At the same time, the retailer is cutting its full-year outlook for a key sales measure, saying it couldn’t make up the sales shortfall it experienced in the first quarter, when a series of winter storms kept shoppers at home. Shares of Macy’s are down nearly 5 percent.
MOLINE, Ill. (AP) — Deere’s third-quarter profit fell 15 percent and the farming equipment maker says it expects weak sales at home and abroad will cut into earnings for the entire year. Chairman and CEO Samuel Allen says the company will be scaling back to bring production more in line with demand for its agricultural products. Deere earned a little more than $850 million, or $2.33 per share, for the three months ended July 31. Analysts had been expecting worse.
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