Business Highlights: Record Thanksgiving travel rush kicks off; OpenAI rehires CEO it fired days ago
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OpenAI brings back Sam Altman as CEO just days after his firing unleashed chaos
The ousted leader of ChatGPT maker OpenAI is returning to the company that fired him just days ago. The move culminates a short but chaotic power struggle that shocked the tech industry and underscored the conflicts around how to safely build artificial intelligence. San Francisco-based OpenAI said late Tuesday that it’s also bringing on a new board of directors that replaces the one that fired Altman as CEO on Friday. Lack of transparency surrounding Altman’s firing led to a weekend of internal conflict and growing outside pressure from the startup’s investors. An expert says the turmoil “shows how fragile the AI ecosystem is right now, including addressing AI’s risks.”
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Record Thanksgiving travel rush off to a smooth start despite snowy forecast
Holiday travelers are starting their final sprint. About 2.7 million people were expected to board flights on Wednesday, and Sunday is expected to set an all-time record of 2.9 million. Many millions of other Americans will drive to Thanksgiving celebrations. Airlines and the Federal Aviation Administration say they are prepared for the onslaught. But airport security lines could be long. Delta is telling passengers to arrive at the airport at least two or three hours before their flight. On the positive side, the government says airfares are lower than they were last year, and gasoline prices are down too.
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More Americans are expected to ‘buy now, pay later’ for the holidays. Analysts see a growing risk
NEW YORK (AP) — Consumers are expected to use “buy now, pay later” payment plans heavily this holiday season, a forecast that bodes well for retailers but that has credit experts again sounding alarm bells. The short-term loans often come with consumer-friendly interest rates and allow shoppers to make an initial payment at checkout, then pay the rest in installments, typically over a few weeks, even months. That can be appealing to a shopper buying multiple gifts for family and friends during the holidays, particularly if they’re balancing other debt such as student loans or credit cards. But analysts say key features of the plans can make borrowing too easy and saddle consumers with excessive debt.
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Broadcom planning to complete deal for $69 billion acquisition of VMWare after regulators give OK
SAN JOSE, California (AP) — Computer chip and software maker Broadcom says it has cleared all regulatory hurdles and plans to complete its $69 billion acquisition of cloud technology company VMware on Wednesday. The company announced the plan after China joined the list of countries that had given a go-ahead for the acquisition. Broadcom wants to establish a stronger foothold in the cloud computing market, and VMware’s technology allows large corporations to blend public cloud access with internal company networks. VMware has close relations with every major cloud company and provider, including Amazon, Google and Microsoft. Broadcom said there was “no legal impediment to closing under U.S. merger regulations.”
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The average long-term US mortgage rate falls to 7.29% in fourth-straight weekly drop
LOS ANGELES (AP) — The average long-term U.S. mortgage rate fell for the fourth time in as many weeks, more positive news for prospective homebuyers who have been held back by sharply higher borrowing costs and heightened competition for relatively few homes for sale. The latest decline brought the average rate on a 30-year mortgage down to 7.29% from 7.44% last week, mortgage buyer Freddie Mac said Wednesday. A year ago, the rate averaged 6.58%. Rates have been declining in recent weeks along with the 10-year Treasury yield, which lenders use as a guide to pricing loans, amid hopes that inflation has cooled enough to pave the way for the Federal Reserve to cut rates.
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Black Friday is almost here. What to know about the holiday sales event’s history and evolution
NEW YORK (AP) — If you didn’t already guess it from a barrage of sales ads in your inbox, the holiday shopping season is upon us. And Black Friday is right around the corner. While Black Friday may no longer look like the crowd-filled, in-person mayhem that it was just decades ago — in large part due to the rising dependence on online shopping that was accelerated by the COVID-19 pandemic — the holiday sales event is still slated to attract millions of consumers. The extension of Black Friday sales and growing strength of other shopping events (hello Cyber Monday) is also changing what holiday spending looks like today.
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Regulators and law enforcement crack down on crypto’s bad actors. Congress has yet to take action
WASHINGTON (AP) — While the scandals in the cryptocurrency industry seem to never end, Washington policymakers appear to have little interest in pushing through legislation to codify the structure of the industry. The latest shoe to drop is Binance’s multibillion dollar settlement with U.S. authorities this week. Efforts in Congress to come up with legislation have gone nowhere, especially in this chaotic year that has been dominated by geopolitical tensions, inflation and the upcoming 2024 election. Meanwhile, law enforcement officials and regulators have stepped in, winning the conviction of Sam Bankman-Fried and suing smaller crypto companies for violating securities laws.
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Stellantis recalls more than 32,000 hybrid Jeep Wrangler SUVs because of potential fire risk
AUBURN HILLS, Mich. (AP) — Automaker Stellantis has announced a recall of more than 32,000 of its hybrid Jeep Wrangler SUVs because they pose a potential fire risk. During a review of customer information, Stellantis determined that eight of the hybrid Wranglers had caught fire while they were turned off and parked. Six of the vehicles were being charged when the fires started. The company said it doesn’t believe anyone was hurt in the fires. The recall covers 2021-2024 models of the Jeep Wrangler 4xe SUVs. Stellantis is advising people not to charge the affected SUVs or park them by buildings until they can be fixed.
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U.S. unemployment claims drop by 24,000 to 209,000, another sign of labor market resiliency
WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell sharply last week, a sign that U.S. job market remains resilient despite higher interest rates. The Labor Department reported Wednesday that jobless claims were dropped by 24,000 to 209,000. The four-week moving average of claims, which smooths out week-to-week volatility, fell by 750 to 220,000. The applications are viewed as a proxy for layoffs. They remain extraordinarily low by historical standards, signalling that most Americans enjoy unusual job security.
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Stock market today: Wall Street ends higher ahead of Thanksgiving holiday in the US
Stocks closed higher on Wall Street, keeping the market on track for a fourth straight weekly gain. The S&P 500 rose 0.4% Wednesday, the Dow added 184 points, and the Nasdaq composite rose 0.5%. Nvidia fell even after reporting blowout profits. The stock has more than tripled this year amid rapid growth in demand for its chips in artificial intelligence applications. Crude oil prices closed lower after OPEC postponed a meeting to discuss production cuts to next week. Trading was muted ahead of the Thanksgiving holiday on Thursday. U.S. markets will be open for half a day on Friday.
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The S&P 500 rose 18.43 points, or 0.4%, to 4,556.62. The Dow Jones Industrial Average rose 184.74 points, or 0.5%, to 35,273.03. The Nasdaq composite rose 65.88 points, or 0.5%, to 14,265.86. The Russell 2000 index of smaller companies rose 12.28 points, or 0.7% to 1,795.54.