U.S. Wholesale Inventories Rise Less Than Expected In July

Wholesale inventories in the U.S. increased by less than expected in the month of July, according to a report released by the Commerce Department on Friday.

The report showed wholesale inventories rose by 0.6 percent in July after surging by 1.8 percent in June. Economists had expected wholesale inventories to climb by 0.8 percent.

The smaller than expected advance in wholesale inventories came as a 1.0 percent jump in inventories of durable goods was partly offset by a 0.1 percent dip in inventories of non-durable goods.

Meanwhile, the Commerce Department said wholesale sales tumbled by 1.4 percent in July after leaping by 1.6 percent in June.

Sales of non-durable goods plunged by 3.2 percent, more than offsetting a 0.6 percent increase in sales of durable goods.

With inventories rising and sales slumping, the inventories/sales ratio for merchant wholesalers climbed to 1.29 in July from 1.26 in June.

BJ’s Wholesale Club Will Now Accept SNAP EBT Payment

Membership-based big box retailers, BJ’s Wholesale Club (NYSE: BJ), announced that they will be accepting SNAP EBT payments for the purchases at checkout on BJs.com or the retailer’s mobile application. The payment option is also valid for the company’s other services such as free pick up, shipping and one-day delivery.

Monica Schwartz, EVP and Chief Digital Officer of the company said, “Over the course of the last few months, we’ve been actively working to expand our online SNAP EBT payment options for our members across all the states we currently do business in.”

The payment can also be divided between the SNAP EBT card and debit or credit card according to the choice of the customer. “EBT payment options afford our members the time and money saving benefits that we know they love and expect from BJ’s,” added Schwartz.

Alan Alda on ‘M*A*S*H’: ‘Everybody Had Something Taken From Them’

As the acclaimed “situation tragedy” turns 50, the star reflects on its innovations: “The crazy behavior wasn’t just to be funny. It was a way of separating yourself for a moment from the nastiness.”

Send any friend a story

As a subscriber, you have 10 gift articles to give each month. Anyone can read what you share.

By Saul Austerlitz

Tesla Planning To Build Lithium Refining Factory In Texas

Electric vehicle giant Tesla Inc. (TSLA) is reportedly planning to build a lithium refining factory in Texas.

According to CNBC, in an application filed with the Texas Comptroller’s Office, Tesla is seeking tax rebates to build a plant in the state.

“The potential battery-grade lithium hydroxide refining facility, which Tesla touted as the first of its kind in North America, will process “raw ore material into a usable state for battery production”, the company said in an application filed with the Texas Comptroller’s Office.”

If the project is approved, Tesla says that it could start construction as soon as in the fourth quarter of 2022, which would enable it to reach commercial production by the end of 2024.

In April, Tesla CEO Elon Musk said the company may need to get into lithium refining because the cost of the metal had “gone to insane levels.” Musk had referred to the facility as a “license to print money.” The price of lithium is up 120% this year.

Gold Extends Losses On Fears Of Harsher Fed Policy

Gold prices continued to decline post the U.S. CPI shocker on Tuesday that dashed the hopes of a softening in the Fed’s monetary policy. Prices of the yellow metal which were around $1,740 before the release of the CPI numbers, plunged to $1,662 in the day’s trade.

The Dollar’s strength, in the backdrop of changed expectations on Fed Policy as well as the hardening of bond yields have been dragging Gold’s prices since Tuesday. The retail sales numbers released on Thursday only reinforced the belief that the Fed would do all it can to control inflation, deepening the bearish sentiment on the precious metal.

On Friday, the Dollar strengthened against major currencies causing the Dollar Index to rally to 110.26. It is currently at 110.12, higher by 0.35 percent on an overnight basis.

The hardening of the U.S. ten-year bond yields by 0.73 percent in the day’s trade, increasing the opportunity cost of holding non-yielding bullion, added to the price pressure on the yellow metal.

Gold Futures for December settlement weakened 10 points overnight to trade at $1,667.45, down 0.59 percent on an overnight basis. Prices oscillated between $1,662.05 and $1,676.60.

European Economics Preview: UK Retail Sales Data Due

Retail sales from the UK and final inflation data from the euro area are due on Friday, headlining a light day for the European economic news.

At 2.00 am ET, the Office for National Statistics releases UK retail sales for August. Sales are forecast to fall 0.5 percent on month, in contrast to the 0.3 percent rise in July.

In the meantime, the European Automobile Manufacturers’ Association is scheduled to issue new car registrations data for July.

At 3.00 am ET, the Czech Statistical Office releases producer prices figures. The producer price index is expected to climb 26.0 percent on year in August, following July’s 26.8 percent increase.

In the meantime, harmonized consumer prices from Austria and Slovakia are due.

At 4.00 am ET, Italy’s Istat publishes foreign trade data for July. The trade deficit is seen narrowing to EUR 1.5 billion versus -EUR 2.17 billion in June.

At 5.00 am ET, Eurostat is scheduled to release euro area consumer price data for August. According to flash estimate, inflation rose to 9.1 percent in August from 8.9 percent in July.

Also, Italy’s final CPI & HICP data is due at 5.00 am ET.

At 6.30 am ET, Bank of Russia announces its monetary policy decision. The bank is expected to cut its key rate to 7.50 percent from 8.00 percent.