Millennials are falling behind their boomer parents
SOUTH MILWAUKEE, Wisconsin (AP) — Baby Boomers: your millennial children are worse off than you.
Millennials earn 20 percent less than boomers did at the same stage of life, despite being better educated, according to a new analysis of Federal Reserve data by the advocacy group Young Invincibles.
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The analysis being released Friday gives concrete details about a troubling generational divide that helps to explain much of the anxiety that defined the 2016 election. Millennials have half the net worth of boomers. Their home ownership rate is lower, while their student debt is drastically higher.
Takata agrees to guilty plea, will pay $1B for hiding defect
DETROIT (AP) — Takata Corp. has agreed to plead guilty to a single criminal charge and will pay $1 billion in fines and restitution for a years-long scheme to conceal a deadly defect in its automotive air bag inflators.
The U.S. Attorney’s Office in Detroit announced the deal Friday, hours after it unsealed a grand jury indictment against three former Takata executives accused of executing the scheme.
Takata inflators can explode with too much force, spewing shrapnel into automobiles. At least 11 people have been killed in the U.S. and 16 worldwide because of the defect. More than 180 have been injured.
US stock indexes end mostly higher on solid bank earnings
Banks led U.S. stock indexes mostly higher Friday, propelling the Nasdaq composite index to its fourth record high this week.
Investors welcomed quarterly earnings from JPMorgan Chase, Bank of America and Wells Fargo, all of which reported results that exceeded Wall Street’s expectations. Financial stocks also benefited from an upward move in bond yields, which drives higher interest rates on loans.
Real estate stocks were the biggest laggard. Shares in energy companies also closed lower as crude oil prices declined. Mixed data on U.S. retail sales weighed on department store stocks.
More pay, greater confidence lifts US retail sales 0.6 pct.
WASHINGTON (AP) — Americans stepped up their auto buying and online shopping in December, reflecting a boost in confidence after the election and a solid increase in pay.
Retail sales rose a seasonally adjusted 0.6 percent, following a small 0.2 percent gain in November, the Commerce Department said Friday. Excluding autos and gas, retail sales overall were flat.
Some economists were disappointed by that figure and said it suggested that many consumers remain cautious.
Wells Fargo profit falls after sales practice scandal
NEW YORK (AP) — Wells Fargo said Friday its profit fell 5 percent in the first full quarter after regulators said that bank employees opened millions of customer accounts fraudulently to meet sales goals. The scandal has kept new customers away, with the bank reporting that new account openings plummeted last month.
In September, regulators fined the San Francisco-based bank $185 million for opening more than two million unauthorized accounts. The scandal brought nationwide attention to the bank, leading to the resignation of the bank’s CEO John Stumpf in October.
Bank of America tops 4Q profit forecasts
Bank of America’s fourth-quarter profit jumped 47 percent as the nation’s largest consumer bank benefited from higher interest rates and lower expenses.
The bank said it earned a profit of $4.34 billion after payments to preferred shareholders, or 40 cents per share, up from $2.95 billion, or 27 cents a share, in the same period a year earlier. The results topped analysts’ expectations, who were looking for 38 cents per share, according to FactSet.
Like many consumer banks, BofA struggled to grow profits for the last several years due to record low interest rates. Now that the Federal Reserve has started increasing rates, BofA can charge more for loans.
JP Morgan Chase beats earnings forecasts
NEW YORK (AP) — JPMorgan Chase & Co. said its fourth quarter profit rose 24 percent from a year earlier, helped by higher interest rates and strong results from its trading operations.
The nation’s largest bank by assets said it earned $6.73 billion, or $1.71 per share, compared with a profit of $5.43 billion, or $1.32 per share, in the same period a year ago. The results beat analysts’ forecast of $1.42 per share. The results included a tax benefit of $475 million.
Like most of Wall Street, JPMorgan benefited heavily from the stock market’s big rally that came after the U.S. presidential election.
Pandora shares up on stronger 4Q outlook, job cut plans
NEW YORK (AP) — Pandora has reported a stronger fourth-quarter revenue outlook and announced plans to cut approximately 7 percent of its workforce.
Pandora said late Thursday that the job cuts, which would exclude Ticketfly, are being done to help trim overall operating costs. The Oakland, California-based company has been facing increasing competition from Spotify and Apple Inc.’s music service.
Pandora anticipates beating its previously announced forecast for fourth-quarter revenue in a range of $362 million to $374 million, citing its strong advertising performance. Analysts polled by FactSet expect $369.6 million.
Liberty is depicted as black woman on $100 gold coin
WASHINGTON (AP) — The U.S. Mint has unveiled a commemorative $100 gold coin that features an image of Liberty as a black woman.
The 2017 American Liberty 225th Anniversary Gold Coin shows the woman’s head in profile with a crown of stars. It features the year of the mint’s founding, 1792, as well as the year 2017. The mint says the other side of the coin will depict an eagle in flight.
The coin will be released April 6. The Mint says it’s the first in a series of 24-karat gold that will also depict Liberty in designs representing Asian-Americans, Hispanic-Americans and Indian-Americans.
Toyota adds 543,000 vehicles to Takata air bag recalls
TOKYO (AP) — Toyota Motor Corp. says it is recalling another 543,000 vehicles in the U.S. for defective front passenger air bag inflators made by Japan’s Takata Corp.
Takata is at the center of a massive recall of inflators that can explode in a crash, spewing metal shrapnel inside the vehicles.
Toyota said Friday that the recall includes various models of sedans and SUVs made between 2006 and 2012. Among those recalled are the 2008-2009 Scion xB; 2009 and 2012 Corolla and Corolla Matrix, 2007-2009 and 2012 Toyota Yaris, 2012 4Runner and Sienna and various versions of Lexus made between 2006 and 2012.
The Dow Jones industrial average fell 5.27 points, or 0.03 percent, to 19,885.73. The S&P 500 index rose 4.20 points, or 0.2 percent, to 2,274.64. The Nasdaq gained 26.63 points, or 0.5 percent, to 5,574.12.
Benchmark crude oil fell 64 cents, or 1.2 percent, to close at $52.37 a barrel in New York. Brent crude, which is used to price oil sold internationally, slid 56 cents, or 1 percent, to close at $55.45 a barrel in London. In other energy trading, wholesale gasoline was little changed at $1.61 a gallon, while heating oil slipped 2 cents to $1.65 a gallon. Natural gas futures gained 3 cents, or 1 percent, to $3.42 per 1,000 cubic feet.