FINANCIAL MARKETS
Stocks surge
NEW YORK (AP) — Stocks are holding onto big gains after surging in morning trading on Wall Street, after U.S. and Chinese officials agreed to continue trade talks in Washington next week.
The gains mark a turnaround after the market ended lower Thursday following a disappointing holiday sales report.
Investors are also looking at quarterly results from major U.S. companies. Bank, energy and materials stocks are showing the biggest gains. All 11 sectors in the S&P 500 are higher.
Snack and beverage giant Pepsi gained despite relatively soft fourth-quarter results. Much like rival Coca-Cola on Thursday, the company gave investors a weak forecast for the year as it faces a stronger dollar. PepsiCo moved to a profit in its fourth quarter, getting a boost from a large tax benefit as sales in its Frito-Lay unit North America strengthened
Pepsi rose 3.2 percent and Coca-Cola was flat.
INDUSTRIAL PRODUCTION
Industrial production falls
WASHINGTON (AP) — Industrial production fell 0.6 percent in January, a decline caused in large part by an 8.8 percent plunge in the making of motor vehicles and auto parts. The Federal Reserve says that the manufacturing component of the index dropped 0.9 percent last month, reversing a 0.8 percent gain in December. Manufacturing of wood products, computers, electrical equipment, apparel and chemicals also fell in January. Utility output rose 0.4 percent as the winter caused more natural gas usage.
CHINA-US-TRADE TALKS
More talks slated next week
UNDATED— With a deadline looming, U.S. and Chinese negotiators will hold more talks in Washington next week aimed at ending a battle over Beijing's technology ambitions. The announcement came after U.S. Trade Representative Robert Lighthizer told Chinese President Xi Jinping that negotiators had "made headway" on important issues in two days of talks that wrapped up Friday in Beijing.
According to the official Xinhua News Agency, Chinese President Xi Jinping told Lighthizer after the negotiations ended, "I hope you will continue to work hard to promote a mutually beneficial and win-win agreement".
The decision to hold more talks suggested they were making progress. But there was no indication of movement on the thorniest dispute: U.S. pressure on Beijing to scale back plans for government-led creation of Chinese global leaders in robotics and other technologies.
Lighthizer told Xi, "We feel we have made headway on very, very important and difficult issues." He says, "We have additional work we have to do but we are hopeful."
Washington, Europe, Japan and other governments say Beijing's industry plans violate its market-opening obligations. Some American officials worry they might erode U.S. industrial leadership.
FLORIDA ATTORNEY SENTENCED
Attorney sentenced for securities fraud
MIAMI (AP) — A Florida attorney has been sentenced to seven years in prison and ordered to pay $19.7 million in restitution for securities fraud. Court records show that 77-year-old James Schneider was sentenced Thursday in Miami federal court.
He was convicted in December of multiple charges, including conspiracy to commit securities and wire fraud. He must pay restitution to more than 2,000 investors, as well as forfeit $4.8 million.
Prosecutors said 11 other defendants also have been convicted in the pump-and-dump scheme: Schneider's role was to author fake legal opinion letters to create 20 shell companies; investors then spent millions for shares of the companies from 2008 to 2013.
BRITISH ECONOMY
Retail sales rise in Britain despite Brexit uncertainty
LONDON (AP) — Official figures show the average British consumer shrugged off uncertainty surrounding Brexit at the start of the year.
The Office for National Statistics said Friday that retail sales during January were up 1 percent from the month before, with clothing and footwear heavily in demand.
The monthly increase was greater than the expected 0.2 percent increase.
Analysts cautioned about reading too much into the January figures as they came after a relatively poor Christmas period that's seen some retailers struggle to stay afloat.
And Brexit uncertainty hasn't gone away. If anything, it's getting more acute.
James Smith, developed markets economist at ING bank, said there is a risk that, as the March 29 Brexit date draws nearer, "nervousness about the impact of 'no deal' will creep into the consumer mindset."
AMAZON DUMPS NYC
Amazon pulls out of NYC amid opposition
NEW YORK (AP) — Amazon says it will not be building a new headquarters in New York, a stunning reversal after a yearlong search. The online retailer has faced opposition from some New York politicians, who were unhappy with the tax incentives Amazon was promised. Amazon said Thursday it does not plan to look for another location, and will continue to build out offices in Arlington, Virginia, and Nashville, Tennessee.
Some experts say that Amazon's decision to scrap plans to build the massive headquarters in New York City could scare off other companies thinking about either making New York their home or a place to expand.
It's been a complicated few weeks for Amazon with its unexpected pullout from New York City and extortion claims related to intimate selfies taken by its founder Jeff Bezos. While these events seem unlikely to pose much threat to Amazon's business, they're indicative of the mounting challenges the e-commerce giant faces as it grows larger and more dominant
AVERAGE TAX REFUNDS FALL
Tax refunds down
WASHINGTON (AP) — The average tax refund and the total amount of refunds issued are down for a second week. That has the potential to intensify a political flashpoint seized by Democrats as proof that the Republican-written tax law hurts the middle class. The average refund in the second week of the filing season ended Feb. 8 was $1,949, down 8.7 percent from $2,135 a year earlier, according to IRS data released Thursday. Total refunds to date are down 23 percent to $22.2 billion, from $28.9 billion last year.
