Business Highlights: TikTok Purchases, Stock Resumption

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NEW YORK (AP) – TikTok, an app known for its dance videos with 1 billion users worldwide, has also become a buying phenomenon. National chains, hoping to attract younger TikTok users to their stores, are setting up TikTok sections, reminiscent of “As Seen On TV” stores that sold peddled products on infomercials. The hashtag #TikTokMadeMeBuyIt got over 5 billion views, and the app made a bag of products a surprise hit: leggings, handbags, cleaning products, even feta cheese. Brands are often caught off guard. TikTok wants to reduce these viral product sales and is preparing to challenge Facebook as a social shopping powerhouse.

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US stocks rally the most since March as momentum strengthens

Stocks rallied on Wall Street on Thursday as the market rocked through several days of wobbly trading. The S&P 500 jumped 1.7%, its biggest gain since March. The buying wave built on momentum from a day earlier, when the market broke a three-day losing streak. The Dow Jones Industrial Average rose 1.6%, while the Nasdaq rose 1.7%. Healthcare stocks did particularly well, led by a 4.2% gain in UnitedHealth Group after the leading health insurer easily beat analysts’ earnings forecasts and raised its outlook. Apple and Microsoft each grew by more than 2%. The 10-year Treasury yield fell to 1.52%.

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Wholesale prices in the United States hit a 12-month record 8.6%

WASHINGTON (AP) – Wholesale inflation rose 8.6% in September from a year ago, the biggest gain since the 12-month change was first calculated times in 2010. The Labor Department announced Thursday that the increase in its producer price index, which measures inflationary pressures before they reach consumers, was 0.5% in September against a gain 0.7% in August. The 8.6% increase for the 12 months ending in September compared to an 8.3% increase for the 12 months ending in August. The rise in inflation this year reflects rising prices for food and energy and a number of other items, from furniture to automobiles, as the pandemic has scolded supply chains and demand has exceeded supply.

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Unemployment claims in the United States fall to their lowest level since the pandemic

WASHINGTON (AP) – The number of Americans claiming unemployment benefits has fallen to its lowest level since the start of the pandemic, a sign that the labor market continues to improve even as hiring has slowed over the last two months. Unemployment claims fell from 36,000 to 293,000, the second consecutive drop, the Labor Department said Thursday. This is the smallest number of people to claim benefits since March 2020, when the pandemic escalated.

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Bank profits soar, helped by mergers frenzy, fewer bad debts

NEW YORK (AP) – Four of the largest U.S. banks said their profits rose double-digit in the last quarter as a healthier U.S. economy allowed banks to have fewer bad debts and write-offs. Citigroup, Bank of America, Wells Fargo and Morgan Stanley results all benefited from various one-time increases in earnings. The only obstacle facing the big Wall Street banks appears to be low interest rates, which have put some pressure on the banks’ ability to grow their profits. Some of them, like Bank of America, are making up for it by lending significantly more than they did in the first months of the pandemic, a sign of confidence in the US economy.

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IMF warns economic recovery threatened by virus and inflation

WASHINGTON (AP) – The International Monetary Fund warns of growing threats to the global recovery posed by the ongoing coronavirus pandemic and spike in inflation. The lending agency says the Federal Reserve and other central banks must react quickly if current inflationary pressures are not transient. The IMF’s policy-setting panel of 190 countries concluded its annual meeting Thursday with a joint statement that also expressed concerns about the wide divergence in immunization rates between rich and poor countries. The group urged rich countries to redouble their efforts to help meet the goal of immunizing 40% of the population of all countries by the end of this year and 70% by the middle of the year. next year. ___

Deere & Co. workers go on strike after rejecting contract

MOLINE, Ill. (AP) – More than 10,000 Deere & Co. workers withdrew from the strike after the United Auto Workers union said negotiators could not come up with a new deal that would meet workers’ “demands and needs”. The vast majority of the union rejected a contract offer earlier this week that would have granted increases of 5% to some workers and 6% to others. Thirty-five years have passed since Deere’s last big strike, but workers have the courage to demand more this year after working long hours throughout the pandemic and because businesses face shortages of workers. Illinois-based Deere says it is committed to resolving the strike with a deal that benefits all employees.

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For the first time in a decade, the sales slip from the same Domino store

ANN ARBOR, Mich. (AP) – Domino’s Pizza says shortages of cooks, drivers and other staff are reducing sales at its U.S. stores. The world’s largest pizza chain said Thursday that its same-store sales __ or stores open for at least a year __ fell 1.9% in the July-September period. It was the first time in a decade that the company’s comparable store sales in the United States had declined. The job search site Indeed.com currently lists 14,558 job openings at Domino’s stores in the United States. Domino CEO Ritch Allison said understaffing has forced some stores to shorten their opening hours and lengthen delivery times.

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The S&P 500 gained 74.46 points, or 1.7%, to 4,438.26. The Dow Jones Industrial Average rose 534.75 points, or 1.6%, to 34,912.56. The Nasdaq gained 251.79 points, or 1.7%, to 14,823.43. The Russell 2000 Small Business Index added 32.21 points, or 1.4%, to 2,274.18.


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