Orders to U.S. factories for big-ticket manufactured goods posted a sizable gain in June, while business investment rebounded after two months of declines.
Orders for durable goods jumped 3.4 percent in June from May, when orders had fallen 2.1 percent, the Commerce Department reported Monday. The gain was the best result since March and largely reflected a surge in demand for commercial aircraft
A category viewed as a proxy for business investment plans jumped 0.9 percent, also the best showing since March. This category had declined in April and May and had been weak for a number of months. The result may suggest growing confidence among manufacturers as consumers boost their spending.
U.S. manufacturers have struggled this year from the effects of a strong dollar and a plunge in energy prices. The higher value of the dollar against foreign currencies makes U.S. goods more expensive and less competitive in major export markets, while the lower oil prices have led energy companies to scale back investment plans.
SEC Questions Smirnoff-Maker Diageo's U.S. Distribution
British spirits-maker Diageo (DEO) is under scrutiny in the United States, where the U.S. Securities and Exchange Commission has asked for information to see whether it shipped excess inventory to U.S. distributors, a practice known as "channel stuffing."
A spokeswoman for Diageo, the world's biggest spirits company with brands including Smirnoff vodka and Johnnie Walker whisky, confirmed the company received an inquiry from the SEC and was responding to its questions.
It was unclear if a full-scale investigation will follow.
Channel stuffing allows a company to book sales ahead of actual orders. U.S. drug company Bristol Myers Squibb paid $150 million in 2004 to settle SEC charges that the company booked $1.5 billion of excess revenue that way.
"Diageo has received an inquiry from the SEC regarding its distribution in the United States," the spokeswoman said. "Diageo is working to respond fully to the SEC's requests for information in this matter."
Feds Probe Possible Price-Gouging by Four Airlines
The U.S. Transportation Department is investigating possible price gouging by the five biggest U.S. airlines while train service was disabled between New York and Washington following a deadly Amtrak crash in May, it said Friday.
The regulator sent letters on Friday asking each carrier to detail average fares along the route before, during and after the crash. It demanded an explanation for price increases, if any, and asked the airlines whether they communicated with each other about those fares, which might signal collusion.
The review involves Delta Air Lines (DAL), American Airlines Group (AAL), United Continental Holdings (UAL), Southwest Airlines (LUV) and JetBlue Airways (JBLU), all of which said they were cooperating with the probe.
These airlines have allegedly raised fees beyond what you would ordinarily expect in the Northeast Corridor at a time when the Amtrak line was shut down.
American and United added they were confident that no wrongdoing would be found, while Delta said it didn't increase prices but instead lowered some of its highest fares by nearly 50 percent following the crash.
4 Sneaky New Credit Card Fees You Need to Know About
New research shows that credit card providers are going the way of airlines and slamming customers with more fees.
In an analysis of 100 U.S. credit cards, CreditCards.com found that the average card now charges six fees -- though some tip the scales at double that number.
They include some of the usual suspects, such as late payment and cash advance fees (charged by 99 and 98 percent of credit card providers, respectively).
But others might surprise you. For instance, some providers hit credit card holders with annual fees for adding an authorized user to an account, while others are guilty of charging customers for copies of monthly statements.
The survey even found one provider that charges a $25 reopening fee to clients who have second thoughts about closing their accounts.
And as mobile payments grow increasingly popular, watch out for alternative payment method fees -- which might fine you for making a plastic-free payment.
Amazon's Value Surpasses Walmart After Surprise 2Q Profit
The sharp increase in shares brought Amazon's market value to $247.77 billion, more than its biggest rival, Walmart Stores (WMT), signaling a sea change in retailing. Amazon, which just turned 20, is now valued higher than the world's largest retailer.
Bentonville, Arkansas-based Walmart Stores is valued at about $230.53 billion. The company, with 11,767 stores worldwide, still has much higher sales, $485.65 billion in the year ended Jan. 31, compared with Amazon's $89 billion in annual revenue last year.
But investors applauded Amazon's ability to keep costs in check while growing its revenue. Amazon credited the profit to continued strength of its cloud-computing business and strong revenue growth both domestically and abroad. That came as it held costs for marketing and package delivery in check.
5 Simple Ways to Save $100 a Month on Groceries
If you've been to the grocery store lately, you know just how expensive it can be to buy groceries. This fact is only made worse when you have a family to shop for and you like to eat healthy. The Department of Agriculture reported recently that the average family of four spends $563 to nearly $1,300 a month on groceries. While that is a significant range, the fact remains that groceries can be costly.
Most people know that coupons are a great way to save money on groceries, but they only work when they offer discounts on items you'd already be purchasing. There are other ways to save money on groceries that allow you to eat well without having to cut back significantly. The following ways, either together or on their own, will help you cut $100 out of your monthly grocery bill without too much effort.
