US revises down last quarter’s economic growth to 2.7% rate
The U.S. economy expanded at a 2.7% annual rate from October through December, a solid showing despite rising interest rates and elevated inflation, the government said in a downgrade from its initial estimate. The government had previously estimated that the economy grew at a 2.9% annual rate last quarter. The Commerce Department’s revised estimate of last quarter’s gross domestic product — the economy’s total output of goods and services — marked a deceleration from the 3.2% growth rate from July through September. While overall growth was solid in the fourth quarter, business spending barely rose, and consumers spent cautiously, suggesting that the economy lost momentum at the end of 2022.
Stocks rise on Wall Street and break a 4-day losing streak
Stocks climbed after a see-saw day on Wall Street to break out of their longest losing streak since December. The S&P 500 rose 0.5% Thursday for its first gain in five days. Tech stocks helped lead the way after Nvidia reported better results for the latest quarter than expected. It’s a turnaround for tech and high-growth stocks, which have struggled recently because of worries about rising interest rates. They’re seen as some of the most vulnerable as the Federal Reserve jacks rates higher in hopes of stamping out inflation. Treasury yields fell Thursday to take some pressure of the stock market.
Raimondo seeks to rally US behind $52 billion chip program
Commerce Secretary Gina Raimondo is calling on the country to unite around a $52 billion effort to restore the U.S. as the world leader in advanced computer chips. She says the government investment will only succeed with a shared national effort. There is already bipartisan support. Senate Republican leader Mitch McConnell voted for it because of its importance for national security. Factories, autos, appliances, electronics, toys, toothbrushes and weapons systems all depend on semiconductors. Starting next week, the application process will begin for semiconductor firms seeking to qualify for $39 billion in government backing to help fund their expansion of production.
Train crew had little warning before Ohio wreck, probe finds
The crew operating a freight train that derailed in East Palestine, Ohio, didn’t get much warning before dozens of cars went off the tracks, and there is no indication that crew members did anything wrong. That’s according to federal safety investigators, who released a preliminary report Thursday into the fiery wreck that prompted a toxic chemical release and an evacuation. The National Transportation Safety Board says the train’s crew did not receive a critical warning about an overheated axle until just before dozens of cars went off the tracks. The report’s release came as Transportation Secretary Pete Buttigieg made his first visit to East Palestine since the wreck nearly three weeks ago.
Winter storms sow more chaos, shut down much of Portland
Winter storms are sowing more chaos across the U.S. The weather shut down much of Portland after the city experienced its second snowiest day in history and paralyzed travel from parts of the Pacific Coast all the way to the northern Plains. The nearly 11 inches of snow that fell in Portland stalled traffic during the Wednesday evening rush hour and trapped drivers on freeways. Some spent the night in their vehicles or abandoned them altogether as crews struggled to clear roads. The storms brought heavy snow to places that rarely see it, knocked out power to hundreds of thousands of homes and grounded or delayed thousands of flights.
Russia launches rescue ship to space station after leaks
Russia has launched a rescue ship for two cosmonauts and a NASA astronaut whose original ride sprang a dangerous leak at the International Space Station. The new, empty Soyuz capsule should arrive at the orbiting lab on Sunday, following its liftoff Friday from Kazakhstan. The capsule leak in December was blamed on a micrometeorite that punctured an external radiator, draining it of coolant. The same thing happened again earlier this month, this time on a docked Russian cargo ship. Russia delayed the launch of the replacement Soyuz after the second leak, looking for any manufacturing defects. No issues were found.
North Korea says it test-fired long-range cruise missiles
North Korea says it test-fired long-range cruise missiles in waters off its eastern coast a day earlier, adding to a provocative streak in weapons demonstrations as its rivals step up military training. The U.S. and South Korean militaries didn’t immediately confirm the exercise, which North Korea’s state media said were intended to verify the reliability of the missiles and the rapid-response capabilities of the unit that operates those weapons. The launches would have taken place as the United States and South Korea held a simulated military exercise in Washington aimed at sharpening their response to North Korean nuclear threats.
More bodies found in China mine collapse, 48 remain missing
Rescuers with backhoes and bulldozers are digging through tons of earth and rubble for 48 people missing after a landslide buried an open-pit mine in northern China. State broadcaster CCTV says the confirmed death toll in the disaster rose to five. Conditions in the area remain dangerous, and the search had to be suspended for several hours after a second landslide at the gigantic facility in Inner Mongolia’s Alxa League. On Thursday afternoon, more than a dozen bulldozers, trucks, SUVs and fire engines were seen passing through a police checkpoint about 15 miles from the mine.
By wire sources