Business Highlights: The US job market remains hot, Wall Street stocks tumble


More evidence that the US job market remains hot after US job openings rise unexpectedly in August

WASHINGTON (AP) — U.S. job openings unexpectedly rose in August, another sign the U.S. labor market remains strong despite higher interest rates — perhaps too strong for the inflation fighters at the Federal Reserve. The Labor Department said Tuesday that American employers posted 9.6 million job openings in August, up from 8.9 million in July. Economists had expected 8.9 million vacancies in August. The number of layoffs and of people quitting their jobs — a sign of confidence in their prospects — were both essentially unchanged from July. The inflation fighters at the Federal Reserve want to see the red-hot U.S. job market cool off, reducing pressure on businesses to raise pay.


Biden says that all 10 drugs targeted for the first Medicare price negotiations will participate

WASHINGTON (AP) — President Joe Biden has announced that the manufacturers of all of the first 10 prescription drugs selected for Medicare’s first price negotiations have agreed to participate. Tuesday’s announcement clears the way for talks that could lower their costs in coming years and give Biden a potential political win heading into next year’s election. The White House says 9 million seniors and other Medicare beneficiaries paid more than $3.4 billion on these 10 drugs alone last year. The Centers for Medicare and Medicaid Services announced in August the first 10 drugs selected for the negotiation process and said manufacturers had until Monday to agree to participate and submit manufacturer-specific data.


Stock market today: Wall Street buckles under higher bond yields as Dow wipes out gain for the year

NEW YORK (AP) — Wall Street tumbled as it focused on the downside of a surprisingly strong job market. The S&P 500 lost 1.4% Tuesday. The Dow fell 430 points and wiped out the last of its gains for the year so far. The Nasdaq composite led the market lower with a 1.9% drop as Big Tech stocks were among the market’s biggest losers. Stocks fell after a report showed U.S. employers have many more job openings than expected. That raised expectations for interest rates to stay high, and the 10-year Treasury yield hit its highest level since 2007.


Facebook and Instagram users in Europe could get ad-free subscription option, WSJ reports

LONDON (AP) — Meta plans to give Facebook and Instagram users in Europe the option of paying for ad-free versions of the social media platforms as a way to comply with the continent’s strict data privacy rules. That’s according to the Wall Street Journal. It reported Tuesday that the company wants to charge users about $10.50 a month to use Instagram or Facebook without ads on desktop browsers. Prices for mobile would be higher, at roughly 13 euros a month. Meta reportedly is hoping to roll out paid subscriptions in the coming months as a way to comply with European Union data privacy rules that threaten its lucrative business model of showing users personalized ads.


The Supreme Court seems likely to side with the Consumer Financial Protection Bureau

WASHINGTON (AP) — The Supreme Court seems likely to preserve the work of the Consumer Financial Protection Bureau against a conservative-led challenge. Even some conservative justices sounded skeptical Tuesday of arguments that the agency, created after the 2008 financial crisis to regulate mortgages, car loans and other consumer finance, violates the Constitution in the way it is funded. The CFPB case is one of several major challenges to federal regulatory agencies on the docket this term for a court that has for more than a decade been open to limits on their operations. But a majority of the court appeared ready to reject the sweeping arguments made by the lawyer for payday lenders whose challenge to a CFPB rule spawned the Supreme Court case.


Jury selection begins in trial of fallen cryptocurrency mogul Sam Bankman-Fried

NEW YORK (AP) — Sam Bankman-Fried’s trial on charges that he defrauded thousands of customers and investors in his FTX digital coin exchange has begun. Jury selection started Tuesday morning after a prosecutor revealed that the 31-year-old crypto executive was not offered any plea deals, and there were no discussions about a possible plea since his arrest last December. The trial is expected to last up to six weeks. Prosecutors say he cheated FTX exchange customers by illegally diverting massive sums of their money for his personal use, including making risky trades at his cryptocurrency hedge fund. Bankman-Fried says he had no criminal intent with his business decisions.


A deal to expedite grain exports has been reached between Ukraine, Poland and Lithuania

KYIV, Ukraine (AP) — Officials say Ukraine, Poland and Lithuania have agreed on a plan they hope will help expedite Ukrainian grain exports. Needy countries beyond Europe will potentially benefit from speedier procedures. The Ukrainian farm ministry said Tuesday that the deal means that grain inspections would shift from the Ukraine-Poland border to a Lithuanian port on the Baltic Sea. The move seeks to facilitate the transit of Ukrainian exports through Polish territory. The grain can be exported by sea around the world from the Lithuanian port of Klaipeda. The stated goal is to hasten Ukrainian grain exports. But the agreement may also help defuse tensions over grain prices between Kyiv and Warsaw.


United Airlines makes 2nd large order for new planes in less than a year as it renews its fleet

CHICAGO (AP) — United Airlines is making its second large order of new planes in less than a year, again seeking a mix of 110 aircraft from Boeing and rival Airbus as it renews its fleet. The most recent order announced Tuesday will include 50 Boeing 787-9s, and 60 Airbus A321neos. The agreement comes with options for up to 50 more Boeing 787s and for an additional 40 A321neo aircraft at the end of the decade. In December, United ordered 100 new Boeing 787s to replace planes nearing retirement age and to expand its international flying. The company ordered 200 Boeing Max jets and 70 planes from Airbus in June 2021.


The S&P 500 shed 58.94 points, or 1.4%, to 4,229.45. The Dow Jones Industrial Average fell 430.97 points, or 1.3%, to 33,002.38. The Nasdaq composite gave back 248.31 points, or 1.9%, to 13,059.47. The Russell 2000 index of smaller companies slipped 29.66 points, or 1.7% to 1,727.15.

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