(NEW YORK) — Shares in former President Donald Trump’s social media company fell more than 12% Wednesday morning on the heels of Tuesday’s presidential debate, which a CNN poll indicated was won by Vice President Kamala Harris.
Shares of Trump Media & Technology Group, the parent company of Truth Social, were trading Wednesday at the lowest level since the company first went public — a drop of more than 70% since a closing high of $66.22 on March 27.
As of noon, the company’s shares were selling for $16.29.
For some investors, Trump Media serves as a bellwether for the former president’s odds in the upcoming presidential election. When Trump was convicted on 34 felony counts in New York in May, the company’s stock price tumbled — but the stock surged in the days following the July presidential debate and the assassination attempt on the former president.
Analysts have said that the company’s stock performance is removed from the financial outlook of the company, which reported losing more than $16 million over a three-month period ending in June during which it only brought in $836,000 in revenue.
The stock price has been buoyed by a number of passionate individual investors who bought shares in the company to support Trump or because they believe in the company’s mission.
Next week, Trump faces a pivotal choice about his investment in the company. The lockup provision that barred him from selling his shares for the first six months since the company went public expires next week, meaning that Trump could begin selling his shares in the company as early as Sept. 19.
According to filings with the Securities and Exchange Commission, Trump owns approximately 115 million shares of the company, which are worth nearly $2 billion based on Wednesday’s stock price.
On paper, Trump has lost more than $4 billion in his stake over the last six months as the company’s stock price has declined.
A representative for Trump Media & Technology Group did not immediately respond to a request for comment from ABC News.
(NEW YORK) — Consumer prices rose 2.5% in August compared to a year ago, slowing more than expected and delivering welcome news for the Federal Reserve, days before a widely expected interest rate cut.
Inflation cooled significantly from a year-over-year rate of 2.9% recorded in the previous month.
Price increases have fallen from a peak in 2022, but inflation remains higher than the Federal Reserve’s target rate of 2%.
The chances of an interest rate cut at the Fed’s meeting next week are all but certain, according to the CME FedWatch Tool, a measure of market sentiment. Market observers are divided over whether the Fed will impose its typical cut of a quarter of a percentage point, or opt for a larger half-point cut.
So far this year, the job market has slowed alongside cooling inflation. That trend was underscored last week by a weaker-than-expected jobs report, though employers added a solid 142,000 jobs. The unemployment rate has ticked up this year from 3.7% to 4.2%.
The Fed is guided by a dual mandate to keep inflation under control and maximize employment. In theory, low interest rates help stimulate economic activity and boost employment, while high interest rates slow economic performance and ease inflation.
Recent trends have shifted the Fed’s focus away from controlling inflation and toward ensuring a healthy job market.
Speaking at an annual gathering in Jackson Hole, Wyoming last month, Fed Chair Jerome Powell said the “time has come” for the Fed to adjust its interest rate policy.
At previous meetings, Powell said the Fed needed to be confident that inflation had begun moving sustainably downward to its target rate of 2% before instituting rate cuts. Last month, Powell appeared to indicate that the Fed had achieved that objective.
“My confidence has grown that inflation is on a sustainable path down to 2%,” Powell said.
Since last year, the Federal Reserve has held interest rates at their highest level in more than two decades. High borrowing costs for everything from mortgages to credit card loans have helped slow the economy and lower inflation, but the policy risks tipping the U.S. into a recession.
Last month, Goldman Sachs economists raised the probability of a U.S. recession in the next year from 15% to 25%. However, economists disagree about whether current economic conditions warrant serious concern.
Former President of the United States Donald J. Trump and Vice President Harris’s first Presidential Debate is displayed on a TV screen in Foster City, California, United States on September 10, 2024. (Tayfun Coskun/Anadolu via Getty Images)
(PHILADELPHIA) — Vice President Kamala Harris and former President Donald Trump met for the first time Tuesday in their first presidential debate of the 2024 election, hosted by ABC News.
The high-stakes, 90-minute debate was held at Philadelphia’s National Constitution Center, with Trump and Harris arguing their cases for the White House.
As the Democratic and Republican nominees debated the most pressing topics facing the nation, ABC News live fact-checked their statements on the economy for answers that were exaggerated, needed more context or were false.
HARRIS CLAIM: 16 Nobel laureates say Trump’s plan would increase inflation and land us in a recession
FACT-CHECK: Mostly true
Harris correctly describes what the Nobel laureates said about inflation during Trump’s presidency: “There is rightly a worry that Donald Trump will reignite this inflation.” But while the group describes Harris’ agenda as “vastly superior” to Trump’s, their letter doesn’t specifically predict a recession by the middle of 2025. Rather, the group wrote: “We believe that a second Trump term would have a negative impact on the U.S.’s economic standing in the world and a destabilizing effect on the U.S.’s domestic economy.”
The 16 economists are George Akerlof, Angus Deaton, Claudia Goldin, Oliver Hart, Eric S. Maskin, Daniel L. McFadden, Paul R. Milgrom, Roger B. Myerson, Edmund S. Phelps, Paul M. Romer, Alvin E. Roth, William F. Sharp, Robert J. Shiller, Christopher A. Sims, Joseph Stiglitz and Robert B. Wilson.
HARRIS CLAIM: Trump wants a “20% tax on everyday goods” that would cost families “about $4,000 more a year.”
FACT-CHECK: True, but needs context
Trump has proposed a universal “10-20%” tariff on all U.S. imports, from cars and electronics to wine, food products and many other goods. He has also proposed a 60% tariff on imports from China. Vice President Harris called the plan “Trump’s sales tax,” though the former president has not explicitly proposed such a tax. Independent economists, however, say the proposed import tariffs would unquestionably result in higher prices for American consumers across the board.
The precise financial impact on families is hard to predict and estimates vary widely — from additional annual costs per household of $1,700 to nearly $4,000, depending on the study. Trump has not called for any tax hikes for American families.
He has proposed exempting Social Security benefits and tips from taxation, as well as extending individual tax cuts enacted in 2017.
TRUMP CLAIM: Trump said, “We have inflation like very few people have ever seen before. Probably the worst in our nation’s history.”
FACT-CHECK: False, but it was very high
It’s true that early in Joe Biden’s presidency the annual inflation rate peaked at roughly 9% (June of 2022), but that’s not the highest it’s ever been. There are several examples of the inflation rate being much higher than 9% in the U.S, including in the immediate aftermath of World War II and during the oil embargo and shortages of the late ’70s and early 1980s, when the inflation rate peaked at 14.5%.
The inflation rate as of July 2024 is at 2.9% annual inflation, the lowest it has been in three years. It should also be noted that President Biden has falsely claimed that he inherited a high rate from his predecessor. In fact, inflation was at 1.4% when he took office.
*Data for this fact check was gathered from Federal Reserve Bank of St. Louis, or St. Louis Fed
HARRIS CLAIM: Harris said, “Trump left us the worst unemployment since the Great Depression.”
FACT-CHECK: Needs context
The unemployment rate peaked at 14.8% in April 2020 when Trump was in office — that was indeed the highest level since the Great Depression, according to the Bureau of Labor Statistics. But unemployment rapidly declined to 6.4% in January 2021 by the time Trump left office, as the economy started to rebalance. And that 6.4% unemployment rate is still better than the 10% peak during the Great Recession in October 2009.
If you eliminate pandemic statistics, the lowest unemployment rate under Trump was just slightly higher than the lowest point under Biden. Both were good: 3.5% under Trump and 3.4% under Biden at their lowest respectively, according to data provided by the Federal Reserve Bank of St. Louis and Bureau of Labor Statistics.
(NEW YORK) — A fresh inflation report on Wednesday will show whether price increases have continued a monthslong cooldown as they fall toward normal levels.
Economists expect prices to have increased 2.6% over the year ending in August. That figure would mark a notable slowdown from the year-over-year rate of 2.9% recorded in the previous month.
After six consecutive months of slowing price increases, inflation stands at its lowest level since March 2021. However, inflation remains nearly a percentage point higher than the Federal Reserve’s target rate of 2%.
The new price data on Wednesday holds major implications for the course of widely expected interest rate cuts.
The chances of an interest rate cut at the Fed’s meeting next week are all but certain, according to the CME FedWatch Tool, a measure of market sentiment. Market observers are divided over whether the Fed will impose its typical cut of a quarter of a percentage point, or opt for a larger half-point cut.
So far this year, the job market has slowed alongside cooling inflation. That trend was underscored last week by a weaker-than-expected jobs report, though employers added a solid 142,000 jobs. The unemployment rate has ticked up this year from 3.7% to 4.2%.
The Fed is guided by a dual mandate to keep inflation under control and maximize employment. In theory, low interest rates help stimulate economic activity and boost employment, while high interest rates slow economic performance and ease inflation.
Recent trends have shifted the Fed’s focus away from controlling inflation and toward ensuring a healthy job market.
Speaking at an annual gathering in Jackson Hole, Wyoming last month, Fed Chair Jerome Powell said the “time has come” for the Fed to adjust its interest rate policy.
At previous meetings, Powell said the Fed needed to be confident that inflation had begun moving sustainably downward to its target rate of 2% before instituting rate cuts. Last month, Powell appeared to indicate that the Fed had achieved that objective.
“My confidence has grown that inflation is on a sustainable path down to 2%,” Powell said.
Since last year, the Federal Reserve has held interest rates at their highest level in more than two decades. High borrowing costs for everything from mortgages to credit card loans have helped slow the economy and lower inflation, but the policy risks tipping the U.S. into a recession.
Last month, Goldman Sachs economists raised the probability of a U.S. recession in the next year from 15% to 25%. However, economists disagree about whether current economic conditions warrant serious concern.
(NEW YORK) — For any Google users who send and receive emails thanks to the software company’s free Gmail service, it may be time to take stock of your account to ensure it’s not deleted.
The search engine site’s popular Gmail app has more than 1.5 billion active users worldwide, according to the company, and while it doesn’t limit the number of accounts a user can create, they must follow a set of guidelines to maintain an active status.
Google has an inactive account policy, which states that users with “an account that has not been used within a 2-year period” can be deleted due to inactivity.
“This policy applies to your personal Google Account. This policy doesn’t apply to any Google Account that was set up for you through your work, school, or other organization,” the company said.
How to prevent your Gmail account from being deleted
For users with a single Google account that has not been used within the last two years, here are some helpful steps from the company to reconnect and stay online.
Read or send an email.
Share a photo or watch a YouTube video while signed into the relevant Google account.
(NEW YORK) — Keurig, the company behind the popular home brewing and single-serving coffee maker systems, will pay the SEC a $1.5 million civil penalty after it failed to disclose concerns from two major recycling companies about the K-Cup pods in its annual reports.
The Securities and Exchange Commission announced Tuesday that Keurig Dr Pepper Inc. will settle with the agency for the hefty fine after it was “charged with making inaccurate statements regarding the recyclability of its K-Cup single use beverage pods.”
“Public companies must ensure that the reports they file with the SEC are complete and accurate,” John T. Dugan, Associate Director for the regional Boston office of the SEC said in a press release. “When a company speaks to an issue in its annual report, they are required to provide information necessary for investors to get the full picture on that issue so that investors can make educated investment decisions.”
A spokesperson at Keurig Dr Pepper told ABC News that the company was “pleased to have reached an agreement that fully resolves this matter.”
“Our K-Cup pods are made from recyclable polypropylene plastic (also known as #5 plastic), which is widely accepted in curbside recycling systems across North America. We continue to encourage consumers to check with their local recycling program to verify acceptance of pods, as they are not recycled in many communities. We remain committed to a better, more standardized recycling system for all packaging materials through KDP actions, collaboration and smart policy solutions,” the statement continued.
In consecutive annual reports for the company’s fiscal years 2019 and 2020, the SEC found that “Keurig stated that its testing with recycling facilities ‘validated that [K-Cup pods] can be effectively recycled.’ But Keurig did not disclose that two of the largest recycling companies in the United States had expressed significant concerns to Keurig regarding the commercial feasibility of curbside recycling of K-Cup pods at that time and indicated that they did not presently intend to accept them for recycling.”
According to the government agency’s review of the 2019 report, “sales of K-Cup pods comprised a significant percentage of net sales of Keurig’s coffee systems business segment, and research earlier conducted by a Keurig subsidiary indicated that environmental concerns were a significant factor that certain consumers considered, among others, when deciding whether to purchase a Keurig brewing system.”
The SEC order found that “Keurig violated Section 13(a) of the Securities Exchange Act of 1934 and Rule 13a-1 thereunder.
Keurig agreed to a cease-and-desist order, according to the SEC, without admitting or denying the findings in the order.
The SEC investigation was conducted by Michael Franck, Cassandra H. Arriaza, Susan Cooke, and Michele T. Perillo of the Boston Regional Office.
(NEW YORK) — Apple is unveiling its new iPhone 16 on Monday replete with artificial intelligence-driven features as the company introduces the buzzy technology into its signature smartphone.
The Cupertino, California-based company is also releasing fresh versions of its Apple Watch and Apple AirPods.
The announcements arrive months after Apple raised the curtain on an AI-fueled operating system to be used across many of its products.
The generative AI capability, called Apple Intelligence, will allow users to summarize messages and enhance photos, among other features, the company said.
The product rollout on Monday marks the first time consumers get a look at exactly how the firm is incorporating AI into some of its top items, analysts told ABC News.
“There is still a large question mark around AI of, ‘Should I care?’” Ben Bajarin, an analyst at research firm Creative Strategies, told ABC News. “That’s the question that the industry has to address.”
For Apple, Bajarin added, the latest round of product updates are a “big deal.”
Investors, however, appeared unimpressed about an hour after the product release event began. The stock dipped roughly 1.5%.
Here are the new products released by Apple on Monday:
Apple Watch Series 10
Nearly 10 years after Apple announced the debut of its Apple Watch, the company released its Series 10 model, featuring a wider display, brighter screen and new processor.
The display screen on the Series 10 is as much as 30% larger than previous models of the Apple Watch, the company said. The larger display eases typing and reading on the product, Apple said.
Meanwhile, the screen is nearly 40% brighter than previous models. The display updates once per second in always-on mode instead of once per minute.
The updates are powered by a new chip: the S10 SiP. The improved processing enables better crash and fall detection, among other benefits, the company said.
The Series 10 Apple Watch starts at $399. It can be preordered today and will be available beginning on Sept. 20, the company said.
The company also released a new model of its high-powered Apple Watch Ultra. The Apple Watch Ultra II starts at $799. It can also be preordered today and will be available on Sept. 20.
AirPods 4
The company released AirPods 4, the latest model of its ear-bud headphones. The new product features the capacity for noise cancellation, as well as an upgraded processor and improved surround sound, the company said.
AirPods 4 allows users to nod their head “yes” or “no” in response to prompts from Siri, Apple said. Meanwhile, the product uses what Apple calls “noise isolation” in order to automatically remove background noise during a phone conversation.
When a user begins a conversation with someone in his or her immediate environment, AirPods 4 automatically turns down music or other media perviously playing through the ear buds, the company said.
A new H2 chip fuels the new features, Apple said.
AirPods 4 begin at $129. A version of the ear buds that includes noise cancellation will cost $179. The product is available for preorder and will go on sale on Sept. 20, the company said.
An enhanced version of the product, AirPods 4 Max, will begin at $249.
iPhone 16
The iPhone 16 will incorporate Apple Intelligence for summaries of emails and texts, aid in composing messages, enhanced camera functions and improved Siri, the company said.
The generative AI technology designed for iPhone 16 will help users draft or revise text written in third-party apps, such as Slack messages or Goodreads reviews, Apple said.
In addition, users can create novel emojis by writing a description of the desired animation.
Apple Intelligence will also improve the function of the iPhone 16 camera, allowing users to instantly learn information about the subject captured in a photo, such as a restaurant’s hours of operation or a dog’s breed, the company said.
Meanwhile, Siri will draw on Apple Intelligence to better understand prompts, even when a user stumbles on their words, the company. The new version of Siri will also respond to written prompts.
Apple Intelligence will be available in a U.S. dialect of English this year, and is expected to be released in other dialects of English next year. Months later, the company expects to release versions of Apple Intelligence in Mandarin Chinese, Spanish and other languages, the company said.
Beyond AI, the iPhone 16 will feature a wider screen display and new chip. The iPhone 16 will boast a 6.1-inch screen, while the iPhone 16 Pro will feature a 6.7-inch screen.
The new A18 chip will process up to 30% faster than the chip built into the company’s previous smartphone model.
The iPhone 16 begins at $799, while the high-powered iPhone 16 Plus begins at $899.
The price of the iPhone 16 matches the cost of last year’s iPhone 15. The unchanged price aligns with a trend initiated by Apple in recent years, said Bajarin of Creative Strategies.
“This is a priority for them to keep pricing in line,” Bajarin said.
(NEW YORK) — Concerns about inflation have increasingly turned to concerns about the job market. Last month’s weaker than expected jobs report led to turmoil in stocks.
The U.S. added 142,000 jobs in August, according to the Bureau of Labor Statistics report on Friday. The figure was lower than expectations.
The reports showed a slowing but steady job market. The unemployment rate fell to 4.2%.
Jobs were added in construction and health care, according to the Bureau of Labor Statistics. July and June numbers were revised to show 86,000 fewer jobs than previously reported.
While these numbers are lower than expected, and do show a weakening job market, for now, this is still an economy that is adding a decent number of jobs. Given this latest data, the Fed is still on track to cut interest rates at its next meeting on Sept. 18.
Fed Chair Jerome Powell last month said “the time has come” to lower interest rates.
Powell indicated the Fed would soon bring interest rates down from a 23-year high. The shift could lower borrowing costs for everything from credit cards to auto loans to mortgages.
While the unemployment rate remains historically low, it ticked up to 3.8% last month. A sharp downward revision of job growth estimates in June and July lowered those totals by a combined 110,000 jobs.
(NEW YORK) — Concerns about inflation have increasingly turned to concerns about the job market. Last month’s weaker than expected jobs report led to turmoil in stocks.
Expectations are that Friday’s report will show 161,000 jobs added when it’s released at 8:30 a.m.
If jobs come in around expectations it would mean a slowing but steady job market. Some economists are expecting less, around 150,000, pointing out that August data can often come in worse than expected and can be revised later.
Still, a significantly worse-than-expected report could once again lead to concerns that the Fed’s rapid raising of interest rates has hurt the economy and job market more than previously known.
The Fed is on track to cut interest rates at its next meeting announcement on Sept. 18.
Fed Chair Jerome Powell last month said “the time has come” to lower interest rates.
Powell indicated the Fed would soon bring interest rates down from a 23-year high. The shift could lower borrowing costs for everything from credit cards to auto loans to mortgages.
While the unemployment rate remains historically low, it ticked up to 3.8% last month. A sharp downward revision of job growth estimates in June and July lowered those totals by a combined 110,000 jobs.
Shein and Temu icons are seen displayed on a phone screen in this illustration photo taken in Krakow, Poland on August 27, 2024. (Jakub Porzycki/NurPhoto via Getty Images)
(NEW YORK) — Federal safety regulators are calling for an investigation into popular Chinese e-commerce websites Shein and Temu over concerns shoppers can easily purchase baby and toddler products that do not meet U.S. safety regulations.
In a joint letter Monday, Consumer Product Safety Commission Commissioners Peter A. Feldman and Douglas Dziak cited “recent media reports that deadly baby and toddler products are easy to find on these platforms.”
The letter did not single out specific products, but one report from business technology publication The Information, cited in the CPSC letter, found that padded crib bumpers, which were banned by Congress in 2022, are still available on the retailer websites.
Temu said in a statement to ABC News that it requires all sellers “to comply with applicable laws and regulations, including those related to product safety.”
“Our interests are aligned with the U.S. Consumer Product Safety Commission (CPSC) in ensuring consumer protection and product safety, and we will cooperate fully with any investigation,” a Temu spokesperson said.
A Shein spokesperson also told ABC News that the company prioritizes customer safety.
“At SHEIN, customer safety is our top priority and we are investing millions of dollars to strengthen our compliance programs,” Shein said in a statement. “In the last year SHEIN has spent over $10 million building a strong global compliance function and developing partnerships with internationally renowned testing agencies such as Intertek, SGS, BV, and TUV, to further enhance our safety practices. Earlier this year it was also announced that an additional $50 million dollars will be dedicated to fortifying our Global Compliance Center and initiatives to ensure strict adherence to our rigorous product safety standards and full compliance with applicable laws and regulations.”
The spokesperson added, “Our global team, including more than 1,000 U.S. employees, remains steadfast in its commitment to quality and safety for our customers, and we resolutely support the Commission’s mandate.”
Both Temu and Shein have exploded in popularity in the U.S., in part because their sites offer cheap prices on a variety of products from clothes to home goods.
The CPSC commissioners said e-commerce platforms can offer great deals to consumers, but it’s critical they comply with U.S. safety standards to avoid any risk of injury.
