Caution is in the air on Wall Street as a very bullish June begins to draw to a close, with U.S. stock futures pointing to a near flatline open.Morning Briefread more
Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each share held, for a total value of $188.24 per Allergan share.Biotech and Pharmaceuticalsread more
"What else do you have to do that will actually have to affect the Iranians' calculus?" said Amos Hochstein, who served as U.S. special envoy for international energy affairs...World Politicsread more
Reports of tensions may have been sparked by Kraft Heinz's underperformance and because of accounting problems at the packaged goods company.Investingread more
SpaceX used its high speed boat called "Ms. Tree" to catch the nosecone its Falcon 9 rocket after Monday's launch.Investing in Spaceread more
The major indexes have stretched to all-time highs and are riding one of their best first halves in decades.Trading Nationread more
FedEx sued the U.S. government, saying it should not be held liable if it inadvertently shipped products that violated a Trump administration ban on exports to some Chinese...Traderead more
The leaders of Japan and China got off to a tense start but have made significant progress in turning around their relations in recent years.Asia Politicsread more
Tech's hottest IPOs of the year, including Beyond Meat and Zoom, dropped on Monday, falling more than the broader market.Technologyread more
Citi Private Bank says it has maintained an "overweight" stance on stocks in China, Hong Kong, Taiwan and South Korea.Asia Marketsread more
Stocks in Asia slipped on Tuesday, while investors looked toward a meeting between U.S. President Donald Trump and Chinese President Xi Jinping set to happen later in the...Asia Marketsread more
The U.S. economy grew faster than initially thought in the second quarter on solid domestic demand, showing fairly strong momentum that could still allow the Federal Reserve to hike interest rates this year.
Gross domestic product expanded at a 3.7 percent annual pace instead of the 2.3 percent rate reported last month, the Commerce Department said on Thursday in its second GDP estimate.
The GDP report, which was released in the wake of a global stock market sell-off, should offer assurance to both investors and cautious Fed officials that the United States was in good shape to weather the growing strains in the world economy.
Concerns over slowing economic growth in China sent global equity markets into a tailspin last week, raising doubts that the U.S. central bank would raise its short-term interest rate next month.
On Wednesday, New York Fed President William Dudley said that prospects of a September lift-off in the central bank's key lending rate "seems less compelling to me than it was a few weeks ago."
The upward revisions to second-quarter growth also reflected the accumulation of $121.1 billion worth of inventories, up from the previous estimate of $110 billion. That meant inventories contributed 0.22 percentage point to GDP instead of subtracting 0.08 percentage point as reported last month.
While the huge inventory build will likely weigh on growth in the third quarter, the blow could be softened by rebounding business investment on capital goods.
Economists polled by Reuters had expected that second-quarter GDP growth would be revised to a 3.2 percent rate.
Underscoring the economy's solid fundamentals, a measure of private domestic demand, which excludes trade, inventories and government expenditures, increased at a 3.3 percent rate, instead of the previously reported 2.5 percent pace.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, grew at a 3.1 percent rate, rather than the 2.9 percent pace reported last month. Consumer spending got off a to brisk start in the third quarter, with retail sales rising solidly in July.
A strong labor market, cheaper gasoline and relatively higher house prices, which are boosting household wealth, are helping to support consumer spending.
Investment in nonresidential structures was revised to show it rising at a 3.1 percent rate, reflecting stronger spending on commercial and healthcare construction. It was previously reported to have contracted at a 1.6 percent pace.
Spending on residential construction was raised to a 7.8 percent pace from a 6.6 percent rate. Business spending on equipment was not as weak as initially thought.
The energy sector continued to weigh on growth as it struggles with the lingering effects of deep spending cuts by oil-field companies like Schlumberger and Halliburton in the aftermath of a more than 60 percent plunge in crude oil prices since last year.
Spending on mining exploration, wells and shafts plunged at a 68.3 percent rate in the second quarter, the largest decline since the second quarter of 1986. This category was previously reported to have contracted at a 68.2 percent pace.
The trade deficit was smaller than previously reported, adding 0.23 percentage point to GDP growth.
The GDP report also showed after-tax corporate profits rebounded 1.3 percent in the second quarter after declining 7.9 percent in the first quarter. A strong dollar has constrained the profits of multinational corporations.