SIGN OF HEALTH: RETAIL SALES RISE 0.4 PERCENT IN JUNE

U.S. retail sales rose at a solid pace last month, providing crucial support to the economy at a time when other drivers of growth have faded.

The Commerce Department said Tuesday that retail sales rose

0.4 percent in June, the fourth straight increase. Sales at online retailers, grocery stores, home and garden stores, and at restaurants and bars all increased at a healthy pace.

June’s figures underscore the importance of consumer spending to the U.S. economy. Business investment has weakened, factory output has faltered and slower global growth is weighing on exports. But measures of consumer confidence remain historically high, and June’s retail sales figures suggest that consumer spending, which drives twothirds of the economy, is strong.

“The onus falls on American consumers to drive economic growth,” Ksenia Bushmeneva, an economist at TD Economics, said in a research note. “It seems that they are up to this task.”

Steady hiring and modest wage increases, along with low interest rates, have helped fuel greater spending.

WELLs FArGO rEsuLts tOP WALL StrEEt ExPECtAtIONs.

TON» Wells Fargo reported betterthan-expected earnings despite lower interest income in the second quarter, a potential concern for investors with a Fed interest rate cut likely on the horizon. Shares in the consumer banking giant slid 3 percent.

Wells Fargo & Co., still under growth restrictions by regulators after years of missteps and scandals, reported net interest income for the quarter of $12.1 billion. That is down 4 percent from $12.5 billion in the second quarter last year and a 2 percent decline from the first quarter of 2019.

Analysts surveyed by FactSet were expecting $12.2 billion in net interest income for the bank.

Net interest income carries extra importance for commercial banks such as Wells Fargo, which rely less heavily on fee revenue than investment banks. Like other banks, Wells Fargo has benefited from a rise in interest rates in recent years, somewhat offsetting the restrictions placed on the bank by regulators.

But the days of rising rates appear to be coming to an end for now, because the Fed recently signaled that it could cut interest rates at its meeting at the end of the month.

BOEING JEt trOuBLE LEADs tO Cuts At EurOPE’s BusIEst AIrLINE.

LONDON»

Europe’s biggest airline, budget carrier Ryanair, will cut flights and close some of its bases beginning this winter because of the delay to deliveries of Boeing 737 Max jets, which have been grounded globally after two fatal crashes.

The airline also warned Tuesday that its growth in European summer traffic for 2020 will be lower than expected because of the slowed deliveries.

Ryanair chief Michael O’Leary said his airline “remains committed” to the Boeing 737 Max jets and expects them to be back in service before the end of the year, but that the date is uncertain.

Ryanair, Europe’s top airline by passengers, said some delays are expected and doubts about when the jets can return to the skies means it will take delivery of only 30 Max aircraft a year from now, rather than the previously scheduled 58. — Denver Post wire services