Update on the latest in business:

FINANCIAL MARKETS

Stocks remain broadly lower

NEW YORK (AP) _ Stocks have bounced back from session lows but remain broadly lower in afternoon trading on Wall Street. Traders were disappointed that the U.S. and China failed to reach a deal on trade before the Friday tariff deadline. Technology and industrial stocks, which would stand to lose the most in a drawn-out trade conflict, had some of the biggest losses.

The U.S. raised tariffs on $200 billion worth of Chinese goods early Friday after no deal was reached.

Advertisement

The U.S. stock market, which until this week had been expecting the two sides to reach an accord on trade, has been dropping for several days and reacted negatively again to Trump’s tweet that “there is absolutely no need to rush” to make a deal.

TRUMP-CHINA TRADE

Trump claims China tariffs help, not hurt US, talks still on

WASHINGTON (AP) _ President Donald Trump says trade talks between China and the U.S. are continuing in a “very congenial manner” despite new tariffs the U.S. imposed today on $200 billion in Chinese imports.

Trump tweeted that the increased tariffs will bring in “FAR MORE wealth” to the United States. But, a study by the Federal Reserve Bank of New York and Columbia and Princeton universities says the burden of Trump’s tariffs falls on U.S. consumers and businesses that buy imports.

Escalating tensions between the world’s two biggest economies have rattling stock markets around the world.

CONSUMER PRICES

US consumer prices rose 0.3% on higher gas, housing costs

WASHINGTON (AP) _ U.S. consumer prices increased 0.3% in April, led by more expensive gasoline, rents and appliances. The Labor Department says the consumer price index climbed 2% in the year ending in April. The figures suggest inflation is mostly subdued, despite solid economic growth and rising wages, which typically push up prices.

Excluding the volatile food and energy categories, core prices increased 0.1% last month and 2.1% from a year ago.

The figures suggest inflation is mostly subdued, despite solid economic growth and rising wages, which typically push up prices.

A big increase in gasoline costs drove more than two-thirds of April’s price rise, while rents increased 0.4%. While, food prices fell for the first time in nearly two years.

UBER-IPO

Uber begins trading nearly 7% below its IPO price

NEW YORK (AP) — Uber began trading as a public company at $42 per share Friday, nearly 7% below its initial public offering price on an already volatile day for the markets.

Initially, the ride-hailing giant sold shares in the IPO at $45 each, raising $8.1 billion and giving the company a valuation of $82 billion. Shares began trading about 2 1/2 hours after the markets opened Friday, with investors already feeling jittery over an escalating trade dispute with China.

CEO Dara Khosrowshahi (kahs-row-SHAH’-hee) tried to manage expectations for the first day of trading, telling CNBC that Uber investors are in it for the long ride.

The IPO price on Thursday came in at the lower end of Uber’s targeted price range of $44 to $50 per share. The caution may have been driven by escalating doubts about the ability of ride-hailing services to make money since Uber’s main rival, Lyft, went public six weeks ago.

TRUMP-OBAMACARE

Scrap “Obamacare”? Well, maybe not all of it.

WASHINGTON (AP) _ The Trump administration is arguing in court that the entire Affordable Care Act should be struck down as unconstitutional. But at the same time Justice Department lawyers have suggested that federal judges could salvage an important part _ its anti-fraud provisions.

Serving up more mixed messages, President Donald Trump floated last week that he’d like to revive legislation shoring up “Obamacare’s” insurance markets. Some legal experts say the administration is undercutting its own arguments.

The New Orleans-based appeals court is hearing the lawsuit after a lower court judge sided with the plaintiffs — Texas and other GOP-led states. The district judge ruled the entire law unconstitutional because Congress repealed its unpopular fines for being uninsured. Democratic states appealed, saying that’s a stretch.

OIL TRAIN RESTRICTIONS

North Dakota to sue Washington state over new oil train rule

BISMARCK, N.D. (AP) — North Dakota is preparing to sue the state of Washington over a new law targeting oil shipped by rail. Washington Gov. Jay Inslee signed a bill into law Thursday that requires a lower vapor pressure limit for crude shipped by rail. Lower than the industry standard and, that North Dakota requires.

But the bill’s sponsor says it’s about protecting communities from explosive derailments.

North Dakota officials say the Washington law would make Pacific Northwest refineries off-limits to the energy industry in North Dakota, which is the nation’s No. 2 oil producer.

North Dakota’s Attorney General says a federal lawsuit will be filed within weeks, and that they are reaching out to other oil states about possibly joining as a plaintiff or offering supportive testimony.

BEER MERGER

Sam Adams’ Boston Beer buys Dogfish Head for $300 million

MILTON, Del. (AP) _ Dogfish Head Brewery is being acquired by the Boston-based brewer of Sam Adams beer in a $300 million cash and stock deal. The founder of Dogfish Head and his family will receive shares of Boston Beer stock valued at about $128 million, with shareholders receiving $173 million in cash.

The Boston Beer Company announced Thursday that it had entered into agreements to acquire all of the equity interests in Dogfish Head Holding Co.

Officials say the combined company will be led by Boston Beer CEO Dave Burwick and maintain a significant presence in Delaware.

VIRGIN GALACTIC

Space-tourism dream edges toward reality in New Mexico

SANTA FE, N.M. (AP) _ British billionaire Richard Branson is taking another concrete step toward offering rides into the close reaches of space for paying passengers. Branson announced Friday that his company Virgin Galactic will begin shifting operations from California to a spaceport and specialized runway in the New Mexico desert in final preparations for commercial flights.

Branson said Virgin Galactic’s development and testing program has advanced enough to make the move from its current testing site in California. New Mexico officials have eagerly anticipated the arrival of space tourism by Virgin Galactic for more than a decade, and have already invested over $200 million for Spaceport America.

While the announcement signals the final countdown to regular commercial service for paying customers, Virgin Galactic has declined to say how many more test flights must be conducted. Branson has said he would like to make his first sub-orbital flight this year, as the venture’s first passenger, on the 50th anniversary of the Apollo 11 moon landing on July 20.

SCHOOL LUNCH DEBT

Company comes to aid of students offered cold jelly sandwiches

PROVIDENCE, R.I. (AP) — The yogurt company Chobani (choh-BAH’-nee) says it will pay the school lunch debt of students in a district that made headlines when they served kids cold sunflower butter and jelly sandwiches instead of a hot meal.

The mayor’s office confirmed Friday it’s coordinating with Chobani to accept nearly $50,000 for Warwick Public Schools in Rhode Island. Other businesses and organizations have also offered to donate. The school district had said it was owed $77,000 and couldn’t assume more debt.

Chobani’s founder and CEO said in a tweet Thursday that as a parent, the news broke his heart. He says access to nutritious food should be a right, not a privilege.

Copyright © 2019 The Associated Press. All rights reserved. This website is not intended for users located within the European Economic Area.