Big banks post strong Q3 profits, but warn higher rates and inflation could bite

NEW YORK (AP) — Wall Street’s biggest banks have reported another strong quarter as U.S. consumers continue to pay bills and businesses invest in AI. Despite this, JPMorgan Chase, Citigroup, Wells Fargo, and Goldman Sachs are warning about the long-term impact of higher interest rates and inflation. JPMorgan posted a $15.3 billion profit in the third quarter, but missed analysts’ expectations. CEO Jamie Dimon cited strong business investment and consumer spending but warned of challenges like inflation and rising interest rates. Goldman Sachs reported increased profits due to stock-trading revenue, but bond trading slowed. Citigroup and Wells Fargo also reported strong profits, beating Wall Street forecasts.

US stocks edge back from their record following the first big batch of profit reports for the summer

NEW YORK (AP) — The first big batch of summertime profit reports from U.S. companies made waves on Wall Street after topping analysts’ expectations, but many canceled each other out. That left U.S. stock indexes little changed near their records on Tuesday. The S&P 500 edged down by less than 0.1% to pull a bit further from its all-time high set last week. The Dow Jones Industrial Average fell 0.3%, and the Nasdaq composite dipped 0.2%. Those modest moves masked some big swings happening underneath the market’s surface. Goldman Sachs and others flipped between gains and losses following their profit reports. Treasury yields eased after oil prices fell.

US hits Bank of America with $1.2 billion fine, saying it violated money laundering, sanctions laws

WASHINGTON (AP) — The U.S. Treasury Department says it’s imposing $1.2 billion in fines on Bank of America for allegedly violating anti-money laundering and sanctions laws. The fines Tuesday on America’s second-biggest bank amount to the third-largest in the department’s history. Treasury said Bank of America also reached an $11.6 million settlement with the department’s Office of Foreign Assets Control over “apparent violations of numerous sanctions programs, including on Iran, Russia, narcotics, and global terrorism."

Kroger to lay off 3,000 corporate employees over 3 years as it leans into artificial intelligence

Grocery store chain Kroger says it will lay off 3,000 corporate employees over the next three years as it ramps up its use of artificial intelligence to streamline operations. In a memo to Kroger employees on Monday, CEO Greg Foran said the company needs to take advantage of recent advances in technology. Kroger last month outlined its AI strategy with the goal of improving the customer experience and making work easier for its employees. Cincinnati-based Kroger is the largest standalone U.S. supermarket chain with 409,000 employees and more than 2,700 stores operating under various brands, including Ralphs, King Soopers, Smith’s and Fred Meyer.

US home sales rose in September, but slowed from a year earlier as mortgage rates, prices rose

Sales of previously occupied U.S. homes rose in September from the previous month, but slowed compared to a year ago, the latest sign the housing market remains stalled as rising mortgage rates and home prices discourage prospective homebuyers. The National Association of Realtors said Tuesday that existing home sales rose 1.5% last month from August to a seasonally adjusted annual rate of 3.99 million units. Sales fell 2.2% compared with September last year. This is the second month in a row that the annual sales pace has dropped below 4 million. The U.S. median sales price increased 1.3% in September from a year earlier to $417,500.

CVS agrees to pay $315 million to settle Justice Department case over opioid prescriptions

WASHINGTON (AP) — CVS Pharmacy Inc. and various subsidiaries have agreed to pay $315 million to resolve a Justice Department case alleging it unlawfully dispensed medically unnecessary prescriptions of highly addictive opioids. The settlement announced Tuesday resolves a lawsuit brought in 2024 that accused the healthcare giant of providing massive amounts of opioids and other controlled substances “to fuel its own profits at the expense of public health and safety.” It’s the latest effort by the federal government to hold accountable companies that officials have alleged helped fuel the U.S. addiction and overdose crisis.

Trump says he cares for Americans. They think he's more focused on his wealth, an AP-NORC poll finds

NEW YORK (AP) — A new AP-NORC poll shows that most Americans think Donald Trump is profiting off the presidency in unethical or illegal ways and is focused more on adding to his personal wealth than helping the country since returning to the White House. The poll results come after a blockbuster year for Trump's family businesses in which they have expanded their real estate empire rapidly and branched into crypto ventures helped by his administration's policies. About 6 in 10 U.S. adults believe the Republican president is either illegally profiting from the presidency or doing something unethical but not illegal. The White House dismisses accusations Trump and his family business are benefiting financially from his office.

Tensions flare over the EU’s next long-term budget ahead of unpredictable elections in 2027

BRUSSELS (AP) — Political tensions are rising over the European Union's next long-term budget. The EU aims to finalize the spending package before unpredictable elections in major member countries next year. The budget accounts for about 1.2% of the bloc’s gross national income. Ireland, holding the EU presidency, has proposed a budget of 1.62 trillion euros, a 30% increase over the current package. But Sweden and other net contributors have demanded significant cuts. Germany's Chancellor Friedrich Merz says the bloc is still far from reaching an agreement. The budget must balance EU ambitions with economic realities in an unpredictable world and with war raging in Ukraine.

Supreme Court agrees to hear watchdog lawsuit seeking records on Elon Musk’s DOGE

WASHINGTON (AP) — The Supreme Court has agreed to hear arguments in a watchdog’s lawsuit seeking public records about trillionaire Elon Musk’s Department of Government Efficiency. The high court said on Tuesday that it will intervene for a second time in Citizens for Responsibility and Ethics in Washington’s case, which seeks access to DOGE records. Last year, the high court reined in a district court’s order for the government to produce DOGE-related records to CREW. The high court concluded that the district judge ruled too broadly in ordering documents to be turned over. A CREW attorney said Tuesday it will “continue to pursue transparency for the American people, who deserve to know the details” of the Trump administration’s efforts “to unilaterally remake the federal government.”

Cyberattacks hit European supermarket chains and disrupt refrigeration systems

PARIS (AP) — Cyberattacks have disrupted European supermarket chains, causing refrigeration systems to overheat at hundreds of stores in France. This forced a major grocer to shut down websites serving customers in Europe and the United States. French Finance Minister Roland Lescure told Parliament on Tuesday that about 700 of the country’s 10,000 supermarkets were affected. The Paris prosecutor’s office said Tuesday that its cybercrime unit was investigating the attack. Danish technology company Danfoss, which supplied the refrigeration management software, said Monday that most affected systems were older products. Danfoss said it was working with affected customers to limit the damage.