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BUSINESS Saturday 30 September
A25
Walmart armors up for food fight with Amazon

By A. D’INNOCENZIO supermarkets fight to win a younger customers in urban will be some time next year, are the most efficient in val-
AP Retail Writer bigger slice of the grocery areas, offering them select according to Walmart of- ue and shipping and ad-
Walmart’s Jet.com will market. And pushing pri- coffee, olive oil, paper tow- ficials.The moves are part justs prices based on what
launch a higher-end gro- vate brands — when they els and other products.Jet. of an overall strategy by items are in the checkout
cery line targeting millen- work — offers high profit com, which sells products Marc Lore — who found- cart, as well as how far the
nials, just over a year after margins since stores have including clothing, gadgets ed Jet.com in 2015 and desired products are from
Walmart spent more than $3 control of sourcing. Whole and home furnishings, will is now head of Walmart’s the shopper’s home. So
billion for the fast-growing Foods has done well with its also be carrying some of U.S. e-commerce — to set as shoppers throw items in
online retailer amid more private label 365 By Whole the niche brands like Mod- the startup apart from the their cart, they’re encour-
intense competition from Foods Market, which is be- Cloth and Bonobos that Walmart.com website and aged to continue shopping
Amazon.Amazon.com Inc. ing expanded to Amazon. Walmart has acquired in make it more upscale. and build a more efficient
last month closed on its ac- com.Jet.com said Friday recent months. ModCloth Jet.com is built on a real- cart and buy items labeled
quisition of Whole Foods, as that the new brand, called is now starting to be car- time pricing algorithm that “smart cart” for more
Walmart, Target, and other Uniquely J, will focus on ried on Jet, while Bonobos determines which sellers savings.q
Technology firms and small companies lead US stocks higher

By MARLEY JAY cent, to $70.45. The stock
AP Markets Writer gained more ground Fri-
NEW YORK (AP) — Large day than it had for the rest
technology and health of this year put together.
care companies and Rival Hormel Foods, whose
smaller U.S.-focused firms brands include Skippy, rose
rose again Friday as stocks 43 cents, or 1.4 percent,
finished the third quarter at to $32.14. Those compa-
record highs. nies and their competitors
Stocks were mixed at the have struggled in recent
start of trading, as they years as Americans look for
had been the day be- fresher food options.Tech-
fore. But chipmakers and nology companies rose
big-name technology further and were the best-
companies pulled stocks performing S&P 500 sector
higher, as they have done in the third quarter. They
all year. Health care com- also held that distinction in
panies also did better the first quarter.
than the rest of the mar- The S&P 500 technology
ket. Tyson Foods climbed index has climbed 26 per-
after it gave strong profit cent in 2017, while the
forecasts, and investors S&P 500 is up 12.5 percent.
cheered strong quarterly In this Wednesday, July 8, 2015 photo, Federal Hall’s George Washington statue stands near the Facebook added $2.14,
results from homebuilder flag-covered pillars of the New York Stock Exchange. Large technology and health care compa- or 1.3 percent, to $170.87
KB Home. nies and smaller U.S.-focused firms rose again Friday as stocks finished the third quarter at record and chip equipment mak-
The market ended the highs. er Applied Materials rose
quarter on a four-day win- (AP Photo/Bebeto Matthews) $1.47, or 2.9 percent, to
ning streak that began af- Financial Research. “She’s percent, to 6,495.96. The President Donald Trump’s $52.09. Chipmaker Nvid-
ter Federal Reserve Chair confident in the economy S&P 500 and Nasdaq both administration will reduce ia advanced $3.09, or
Janet Yellen said the cen- and the economic back- closed at all-time highs. taxes.Tyson Foods jumped 1.8 percent, to $178.77.
tral bank plans to continue drop is very solid.” The Russell 2000 index of after the food company The recent gains for tech
to raising interest rates. The Standard & Poor’s 500 small-company stocks add- raised its annual guidance companies have come in
“It’s all about the con- index rose 9.30 points, or 0.4 ed 2.08 points, or 0.1 per- and said profits for its beef spite of a slump for Apple,
fidence they have that percent, to 2,519.36. The cent, to 1,490.86. It’s also business were better than the world’s most valuable
despite low inflation, it still Dow Jones industrial aver- at record highs after a big expected. publicly-traded company.
makes sense to raise in- age turned higher to finish rally this month. It climbed Thanks in part to cost cuts, While Apple has soared
terest rates,” said Randy with a gain of 23.89 points, 6 percent in September Tyson also forecast a big- this year, it’s down 4 per-
Frederick, vice president or 0.1 percent, at 22,405.09. as investors felt positive ger profit than analysts cent since it announced
of trading and derivatives The Nasdaq composite about the U.S. economy expected for next year.Ty- its new line of iPhones and
at the Schwab Center for jumped 42.51 points, or 0.7 and hoped Congress and son climbed $5, or 7.6 per- other products Sept. 12.q
US consumer spending up weak 0.1 percent in August

By MARTIN CRUTSINGER ed Friday. It was the small- measured by the gross do- nearly 70 percent of eco- at 3.6 percent of after-tax
AP Economics Writer est gain since June. The mestic product, grew at a nomic activity. incomes in August, the
WASHINGTON (AP) — Con- August weakness reflected robust annual rate of 2.1 Some analysts say GDP same as July. Both months
sumers barely boosted their a big drop in sales of du- percent in the April-June growth could be as low as represented the lowest sav-
spending in August, a sign rable goods such as autos. quarter. But many econo- a 2 percent annual rate ing rate since a 3.2 percent
that overall economic ac- Income growth slowed mists believe growth has in the third quarter. They reading in December.A
tivity could be weaker this to a gain of just 0.2 per- slowed in the current July- are, however, expect- measure of inflation closely
quarter. cent. Wages and salaries, September quarter, reflect- ing a rebound in the final watched by the Federal
Consumer spending rose the biggest component, ing the impact of a string three months of the year, Reserve posted a slight 0.2
just 0.1 percent, following showed no gain at all af- of devastating hurricanes helped in part by spending percent increase. Over the
a much larger 0.3 percent ter strong increases in June and the subsequent slow- on rebuilding after the hur- past 12 months it is up 1.4
advance in July, the Com- and July. down in consumer spend- ricanes.The personal sav- percent, still far below the
merce Department report- The overall economy, as ing, which accounts for ing rate was unchanged Fed’s 2 percent target.q