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Business Highlights

By The Associated PressJuly 25, 2019

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Google crushes second quarter earnings expectations

SAN FRANCISCO (AP) — Google parent Alphabet beat analyst expectations for its second quarter financials Thursday, pleasing investors and sending its stock price up. The Mountain View, California-based company brought in revenue of $38.9 billion during the quarter, a 19% bump from the same period last year.

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Apple buys Intel’s smartphone modem division for $1 billion

SAN FRANCISCO (AP) — Apple is paying Intel $1 billion for the chip maker’s smartphone modem division in a deal driven by the upcoming transition to the next generation of wireless technology. The agreement announced Thursday comes three months after Apple ended a long-running dispute with one of Intel’s rivals, Qualcomm, to ensure it would have a pipeline of chips it needs for iPhones to work on ultrafast wireless networks known as 5G. That truce prompted Intel to abandon its attempt to make chips for 5G modems.

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Are Facebook users better off after its $5 billion fine?

If you’re one of Facebook’s two billion users, are you any better off now than you were before the Federal Trade Commission this week imposed new privacy restrictions and a $5 billion fine on the company? Facebook’s settlement with the FTC provides a detailed account of the company’s sneaky behavior and secures a handful of new safeguards. But privacy experts say it’s not likely to restrict Facebook’s harvesting of vast amounts of sensitive personal information.

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Amazon’s 2Q profits miss Wall Street expectations

NEW YORK (AP) — Amazon is reporting that second quarter profits are below Wall Street estimates as increasing competition for faster delivery is putting pressure on the online leader’s business. The Seattle-based company says that profits for the three-month period ended June 30, was $2.6 billion, or $5.22 per share. That compares with $2.53 billion, or $5.07 per share in the year ago quarter.

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California skirts Trump, signs mileage deal with 4 companies

DETROIT (AP) — Four major automakers have reached a deal with California to increase gas mileage and greenhouse gas emissions standards, bypassing the Trump administration’s plan to freeze requirements at 2021 levels. Ford, BMW, Honda and Volkswagen are parties to the deal with the California Air Resources Board, which had been at odds with the Trump administration for months.

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First CRISPR study inside the body to start in US

Patients are about to be enrolled in the first study to test a gene-editing technique known as CRISPR inside the body to try to cure an inherited form of blindness. Two companies said Thursday that they plan to start treating patients this fall in the U.S. The treatment aims to supply a healthy version of a gene that kids and adults with the disease lack.

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NYC sues American Airlines over employee sick leave

NEW YORK (AP) — New York City’s worker protection department says American Airlines is violating the city’s sick leave law by retaliating against workers who use sick days or not letting them use the sick leave they’ve accrued. The Department of Consumer and Worker Protection announced the lawsuit Thursday. The agency seeks $375,000 in restitution covering more than 750 ground crew workers. American says employees have generous sick leave benefits and it will work to make sure they continue to do so.

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Juul exec: Never intended vaping device to be used by teens

WASHINGTON (AP) — The co-founder of vaping giant Juul told Congress that his company never intended its electronic cigarettes to be used by underage teens. House lawmakers are investigating the e-cigarette maker amid a recent explosion of vaping among American youth. Thursday’s hearing marks the first time the privately held company has been called before Congress.

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Grounded Boeing plane takes a bigger bite out of airlines

DALLAS (AP) — Airlines are feeling more financial pain from the grounding of Boeing’s 737 Max jet, which is causing thousands of canceled flights. American Airlines says its 2019 earnings will be cut by $400 million. Southwest Airlines will end service at Newark Liberty International Airport to use its remaining planes more efficiently.

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US long-term mortgage rates fall; 30-year average at 3.75%

WASHINGTON (AP) — U.S. long-term mortgage rates fell this week, edging toward three-year lows amid signals from Federal Reserve officials that they could cut their benchmark interest rate at their meeting next week. Mortgage buyer Freddie Mac says the average rate on the key 30-year mortgage dipped to 3.75% from 3.81% last week.

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Stocks slide over disappointing earnings reports

NEW YORK (AP) — U.S. stocks retreated from record highs as large companies delivered weak earnings reports and disappointing forecasts. The slump marks a turnaround from Wednesday, when solid earnings reports helped push indexes to record highs. Facebook pushed communications stocks lower following the latest disclosure that it is being investigated for alleged anticompetitive behavior. PayPal plunged after cutting its revenue forecast. Invisalign maker Align Technology sank after giving a weak forecast.

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The S&P 500 index fell 15.89 points, or 0.5%, to 3,003.67. The Dow Jones Industrial Average fell 128.99 points, or 0.5%, to 27,140.98. The Nasdaq composite fell 82.96 points, or 1%, to 8,238.54. The Russell 2000 index of smaller-company stocks fell 18.97 points, or 1.2%, to 1,561.45.

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