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US economy slowed to 2.9% annual growth last quarter
WASHINGTON (AP) — The U.S. economy expanded at a 2.9% annual pace from October through December, ending 2022 with momentum despite the pressure of high interest rates and widespread fears of a looming recession. Thursday’s government estimate showed that the nation’s gross domestic product — the broadest gauge of economic output — decelerated last quarter from the 3.2% annual growth rate it had posted from July through September. Most economists think the economy will slow further in the current quarter and slide into at least a mild recession by midyear. The economy got a boost last quarter from resilient consumer spending and the restocking of supplies by businesses. Federal government spending also helped lift GDP.
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Bed Bath & Beyond says it’s in default on its loans
NEW YORK (AP) — Bed Bath & Beyond says it’s in default on its loans and doesn’t have sufficient funds to repay what it owes. The home goods chain based in Union, New Jersey, said in a Securities and Exchange Commission filing Thursday that the default would force the company to look at alternatives including restructuring its debt in bankruptcy court. Bed Bath & Beyond’s stock fell 22% in reaction to the news.
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Colorado baker loses appeal over transgender birthday cake
DENVER (AP) — The Colorado baker who won a partial U.S. Supreme Court victory after refusing to make a gay couple’s wedding cake because of his Christian faith has lost an appeal in his latest legal fight. This case involves his rejection of a request for a birthday cake celebrating a gender transition. It was to be pink with blue frosting. Colorado’s appeals court ruled Thursday that that the cake ordered from Jack Phillips’ Masterpiece Cakeshop is not a form of speech. It also found that the state’s anti-discrimination law doesn’t violate business owners’ religious rights. Phillips plans to appeal.
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Climate groups decry selection of oil chief to oversee COP28
Hundreds of climate and environmental groups from around the world released a letter Thursday that decried the nomination of an oil executive to oversee the United Nations climate negotiations at COP28. Earlier this month, the United Arab Emirates, host of the U.N. climate talks this year, named Sultan al-Jaber to the presidency of the conference. The company he runs as chief executive, the Abu Dhabi National Oil Co., produces 4 million barrels of crude oil per day and hopes to expand to 5 million daily by the end of the decade. Activists said the selection of Al Jaber “threatens the legitimacy and efficacy” of the conference.
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HarperCollins, striking workers agree to federal mediation
NEW YORK (AP) — HarperCollins Publishers and the union representing some 250 striking employees have agreed to enter into federal mediation, the first sign of a possible settlement since the work stoppage began in early November. HarperCollins and the UAW have disagreed on union protections, workplace diversity and wages, with the UAW asking the publisher to raise the starting salary from $45,000 to $50,000. HarperCollins union members include editorial assistants, marketers and other mid- and entry-level staffers who had been working without a contract since last spring. They staged a one-day strike over the summer and walked off indefinitely on Nov. 10.
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US infiltrates big ransomware gang: ‘We hacked the hackers’
WASHINGTON (AP) — Attorney General Merrick Garland and other U.S. officials say the FBI and international partners have at least temporarily disrupted the network of a prolific ransomware gang they infiltrated last year. And as a result they have saved victims, including hospitals and school districts, a potential $130 million in ransom payments. Deputy Attorney General Lisa Monaco says that: “Simply put, using lawful means we hacked the hackers.” Officials say the gang known as Hive, operates one of the world’s top five ransomware networks. FBI Director Christopher Wray says the FBI quietly gained access to Hive’s control panel in July and was able to obtain software keys to decrypt the network of some 1,300 victims globally.
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Boeing pleads not guilty in case over deadly Max crashes
FORT WORTH, Texas (AP) — Boeing has pleaded not guilty to a criminal charge in a case revolving around two crashes of Boeing 737 Max planes. A federal judge in Texas took Boeing’s plea Thursday. The judge is considering whether to appoint a special monitor to examine safety issues at the company. It’s an unusual case because Boeing thought it had settled the issue when it reached a deal with federal prosecutors two years ago. But relatives of some of the passengers who died are challenging the settlement because they weren’t informed about secret negotiations between Boeing and the Justice Department.
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Wall Street hits highest level in nearly eight weeks
NEW YORK (AP) — Stocks climbed Thursday to send Wall Street to its highest level in nearly eight weeks following reports suggesting the economy and corporate profits may be doing better than feared. The S&P 500 rose 1.1% Thursday after briefly dipping lower in late morning trading. More swings may still be ahead, as Wall Street digests a growing torrent of earnings and economic reports. Thursday’s headliner showed the economy held up better through the last three months of 2022 than expected. Reports from Tesla and others helped build optimism a day after worries flared following forecasts from Microsoft widely seen as discouraging.
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Chipotle looks to hire 15,000 amid continuing labor shortage
Restaurants are beginning the new year with a recurring problem: labor shortages. Chipotle says it’s looking to hire 15,000 people in North America to ensure its stores are staffed up ahead of its busy spring season. Other chains are also looking for workers: Taco Bell has more than 25,000 listings for crew members posted on its website. The National Restaurant Association says U.S. restaurants have added jobs for 24 consecutive months. But restaurant employment is still 3.6% lower than before the pandemic, or the equivalent of 450,000 jobs. In a November survey, 62% of restaurant operators said they didn’t have enough staff to meet customer demand.
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Tale of 2 airlines: Big profit at American, Southwest loss
American Airlines gave more proof Thursday of the recovery in air travel, posting a better-than-expected profit for the fourth quarter, while Southwest Airlines lost money because of massive flight cancellations last month. Southwest said it also expects another loss in the first quarter while saying it was encouraged by booking trends for March. Southwest reported a $220 million loss after taking a hit of $800 million from canceling nearly 17,000 flights over the last 10 days of December. The airline had signaled it would lose money, but the adjusted loss of 38 cents per share was worse than the 7 cents per share that Wall Street expected.
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The S&P 500 fell 0.73 points, or less than 0.1%, to 4,016.22. The Dow Jones Industrial Average rose 9.88 points, or less than 0.1%, to 33,743.84. The Nasdaq composite fell 20.91 points, or 0.2%, to 11,313.36. The Russell 2000 index of smaller companies rose 4.71 points, or 0.2%, to 1,890.32.
