Stocks mixed...Fed leaves key rate unchanged...Mortgage rates highest in 7 years
NEW YORK (AP) — Stock indexes are mixed in afternoon trading on Wall Street following yesterday’s rally. The Dow Jones Industrial Average was slightly higher and the S&P 500 index and the Nasdaq composite slightly lower. Technology companies are slipping after chipmaker Qualcomm gave a disappointing revenue forecast for the current quarter. Shares of energy drink maker Monster Beverage Corp. tumbled after the company said its partner Coca-Cola Co. is developing energy drinks of its own.
WASHINGTON (AP) — The Federal Reserve is leaving its key policy rate unchanged but signaling that it plans to keep responding to the strong U.S. economy with further rate hikes. The Fed is keeping its benchmark rate in a range of 2 percent to 2.25 percent. Despite a U.S. trade war with key nations, weaker corporate investment and a sluggish housing market, the Fed is expressing confidence in the economy’s resilience. It has projected three rate increases in 2019 after an expected fourth hike of the year next month.
WASHINGTON (AP) — Mortgage rates have jumped this week to the highest level in seven years, a trend that is pulling down home sales and slowing home price growth. Mortgage buyer Freddie Mac says the average rate on a 30-year, fixed-rate mortgage rose to 4.94 percent, from 4.83 percent last week. A year ago the rate was 3.9 percent. The average rate on a 15-year, fixed rate loan increased to 4.33 percent, from 4.23 percent last week.
DETROIT (AP) — Subaru is recalling nearly 400,000 vehicles in the U.S. to fix two problems that can cause them to stall. The first recall covers about 229,000 Outback and Legacy vehicles from the 2018 model year. Government documents say a software problem can stop the low-fuel warning light from illuminating and make the miles-to-empty display inaccurate. The other recall covers the 2012 to 2014 Impreza, and the 2013 BRZ, XV Crosstrek and Toyota Scion FR-S. The engine valve springs in about 166,000 of the vehicles can fracture, causing the engines to malfunction or stall.
TRENTON, N.J. (AP) — A new version of the once-popular asthma inhaler Primatene Mist will soon return to U.S. stores. The Food and Drug Administration has approved the over-the-counter aerosol inhaler. It’s for temporary relief of mild, intermittent asthma symptoms in people ages 12 and up. The original Primatene Mist was pulled from store shelves seven years ago after the inhaler’s ozone-depleting propellant was banned. The new product from Amphastar Pharmaceuticals uses a safer propellant.