Business Highlights
Roundup of top economy stories
ARMONK, N.Y. — IBM says it is breaking off a $19 billion chunk of
its business to focus on cloud computing. The 109-year-old tech company said Thursday it is spinning off its managed infrastructure services unit into a new public company, temporarily named NewCo. The separation is expected to take effect by late 2021. IBM’s annual revenue was $77.1 billion last year. Krishna said in April at his first quarterly earnings call as CEO that the company will continue to eliminate software and services that don’t align with IBM’s top two focus areas for growth: cloud computing and artificial intelligence. Once a household name for its personal computers, IBM shed its PC business in 2005 and has since become focused on supplying software services to big businesses, governments and other organizations. It has worked to strengthen its cloud computing business but has struggled to compete with top cloud rivals Amazon, Microsoft and Google.
NEW YORK — Stocks closed higher on Wall Street Thursday as hope remains that Washington can approve more aid for the economy and after a report suggested the pace of layoffs is slowing a bit, though it remains incredibly high. The S&P 500 rose 0.8%. It tacked more gains onto Wednesday’s rise after President Donald Trump apparently backtracked on his decision to halt talks on more aid for the economy. He said Thursday morning that “very productive” talks have begun. Banks, technology and communications companies led the gains. Energy stocks jumped after the price of U.S. crude oil climbed more than 3%.
CHARLOTTE, N.C. — JPMorgan Chase says it will extend billions in loans to Black and Latino homebuyers and small
business owners in an expanded effort toward fixing what the bank calls “systemic racism” in the country’s economic system. The bank said it is committing $30 billion over the next five years toward programs that include earmarking more money for getting Black and Latino families into homeownership and providing additional financing to build affordable rental housing units. The bank said it expects the $30 billion to help finance 40,000 additional mortgages for Black and Latino households, another 20,000 loans that will refinance mortgages and help construct 100,000 affordable rental units. WASHINGTON — U.S. long-term mortgage rates changed little last week, flattening in recent weeks following a year-long decline amid economic anxiety in the recession set off by the coronavirus pandemic. Home loan rates have remained at historically low levels. Mortgage buyer Freddie Mac reports that the average rate on the 30-year loan eased to 2.87% from 2.88% last week. The average rate on the 15-year fixed-rate mortgage ticked up to 2.37% from 2.36%. The low borrowing rates have bolstered demand by prospective homebuyers, who on the other hand have been constrained by the scarcity of available homes for sale.