Daily business briefing

Biden signs Democrats' Inflation Reduction Act into law, Walmart shares jump after positive earnings report, and more [Try 6 risk free issues of The Week magazine. Order now.]( [The Week Logo]( [Subscribe to The Week magazine]( [Subscribe to The Week magazine]( Daily business briefing 1. [Biden signs Democrats' sweeping health and climate law]( President Biden on Tuesday [signed the Inflation Reduction Act]( a landmark climate change and health care bill representing the "final piece" of his trimmed-down domestic agenda. The law, which passed with no Republican support, includes about $375 billion to fight climate change, the biggest investment the federal government has ever made to address what Biden has described as a key priority for his administration. The legislation will also extend expanded health insurance subsidies offered since the start of the coronavirus pandemic, and cap out-of-pocket prescription drug costs at $2,000 per year for Medicare recipients. The law will fund itself and raise money for deficit reduction through new taxes on large companies and tougher tax enforcement by the Internal Revenue Service on wealthy taxpayers. [[The Associated Press]( [Share to Facebook]( [Share to Twitter]( [Send in email](mailto:?Subject=Biden+signs+Democrats'+sweeping+health+and+climate+law&body=Read the story here: utm_campaign=business_briefing_newsletter_20220817&utm_source=business_briefing_newsletter) 2. [Walmart shares jump as price cuts boost sales]( Walmart shares rose 5 percent on Tuesday after the retail giant reported better-than-expected quarterly earnings. Walmart said it expects a smaller drop in profits this year than previously predicted thanks to a positive response from customers to price cuts on clothing, electronics, and other non-essential goods. The company said it now expects earnings per share for the year to fall 8 percent to 10 percent, instead of the 10 percent to 12 percent decline it forecast on July 25. Walmart reported quarterly earnings per share of $1.77, down 1 cent from a year earlier but better than the $1.62 percent analysts surveyed by Refinitiv had forecast. Walmart is the nation's largest retailer, so analysts watch its earnings for signs of overall economic strength. [[CNN]( [Share to Facebook]( [Share to Twitter]( [Send in email](mailto:?Subject=Walmart+shares+jump+as+price+cuts+boost+sales&body=Read the story here: utm_campaign=business_briefing_newsletter_20220817&utm_source=business_briefing_newsletter) 3. [Tencent reports first-ever revenue decline]( Chinese tech giant Tencent Holdings on Wednesday reported its first-ever quarterly revenue drop. The WeChat operator laid off nearly 5 percent of its workers, its first staffing decline since 2014, as its revenue fell by a sharper-than-expected 3 percent, to $19.8 billion, as China's economy slumped amid a resurgence of COVID-19-triggered lockdowns in major cities. Beijing also imposed stricter regulations around gaming. Tencent missed both revenue and profit forecasts. The deepening economic downturn in the world's No. 2 economy has hit a broad range of businesses, including cloud computing and gaming. [[Bloomberg]( [CNBC]( [Share to Facebook]( [Share to Twitter]( [Send in email](mailto:?Subject=Tencent+reports+first-ever+revenue+decline&body=Read the story here: utm_campaign=business_briefing_newsletter_20220817&utm_source=business_briefing_newsletter) 4. [Arizona, Nevada, Mexico face emergency water cutsÂ]( The federal government announced Tuesday that it is declaring a Tier 2 water shortage on the Colorado River starting in January, which will impose [further reductions in use of the river by Arizona, Nevada, and Mexico](. Arizona will face the deepest cuts, about 21 percent of its annual allotment. California will not yet get hit with the mandatory cuts under the first-ever Tier 2 shortage. The West's historic drought and water overuse are drying up the Colorado River and draining Lake Mead and Lake Powell, the nation's largest reservoirs. Lake Mead's water level is expected to fall below the Tier 2 cutoff of 1,050 feet above sea level by early 2023. The Colorado River provides drinking water to 40 million people, irrigates farms, and powers electric grids. [[CNN]( [Share to Facebook]( [Share to Twitter]( [Send in email](mailto:?Subject=Arizona,+Nevada,+Mexico+face+emergency+water+cuts &body=Read the story here: utm_campaign=business_briefing_newsletter_20220817&utm_source=business_briefing_newsletter) 5. [Stock futures slip after Tuesday's boost from Walmart, Home Depot]( U.S. stock futures fell slightly early Wednesday after better-than-expected earnings from Walmart and Home Depot helped lift the 30-stock Dow Jones Industrial Average to its fifth straight day of gains on Tuesday. Futures tied to the Dow were down 0.5 percent at 6:30 a.m. ET. S&P 500 and Nasdaq futures were down 0.7 percent and 0.8 percent, respectively. Target reported before the bell Wednesday that its earnings fell nearly 90 percent from a year ago, confirming its warning that steep markdowns on unwanted merchandise would hurt profits. But the big-box retailer said it was poised to rebound. The Dow jumped 0.7 percent on Tuesday, with Walmart and Home Depot its biggest gainers. The S&P 500 rose 0.2 percent, while the tech-heavy Nasdaq fell 0.2 percent. [[MarketWatch]( [CNBC]( [Share to Facebook]( [Share to Twitter]( [Send in email](mailto:?Subject=Stock+futures+slip+after+Tuesday's+boost+from+Walmart,+Home+Depot&body=Read the story here: utm_campaign=business_briefing_newsletter_20220817&utm_source=business_briefing_newsletter) [Read more business stories at theweek.com]( MOST POPULAR [Related image]( [Academy apologizes to Sacheen Littlefeather, who turned down Marlon Brando's 1973 Oscar in protest]( Brendan Morrow [Related image]( [Starbucks accuses labor board of unfairly helping pro-union workers]( Kelsee Majette [Related image]( [Cheney, Murkowski, Palin: A quick look at Tuesday's big primaries]( Brigid Kennedy [Related image]( [Ezra Miller breaks silence on criminal allegations: 'I am suffering complex mental health issues']( Brendan Morrow [Related image]( [The debate over the Catholicism 'trend']( Grayson Quay [Speed reads banner] [Article image]( [FDA approves over-the-counter hearing aids in bid to lower costs, increase access]( August 17, 2022 [Article image]( [Alaska primary: Lisa Murkowski, Sarah Palin, other top candidates advance in new ranked-choice system]( August 17, 2022 [Article image]( [Ukrainian attacks inside Russian-occupied Crimea are key to Kyiv's Kherson counteroffensive, analysts say]( August 17, 2022 [Article image]( [Rep. Liz Cheney concedes GOP primary race: 'Now the real work begins']( August 16, 2022 [Read more of today's best articles at theweek.com]( [Try 6 risk-free issues of The Week magazine]( [Unsubscribe from this list]( | [Privacy Policy]( © Future US LLC. Registered address: 10th floor, 1100 13th Street NW, Washington, DC 20005. [The Week Logo]( [Follow The Week at Facebook.com]( [Follow The Week at Twitter.com]( [The Week magazine cover]( Try 6 Risk Free issues of The Week [Try it out]( [Try it out]( [Subscribe]( [Subscriber login]( [Give a gift]( [Classroom subscriptions]( [Newsletters]( [RSS]( [Ad info]( [Privacy policy]( [Terms & conditions]( [The Week UK]( [Customer service]( [Contact Us]( [Accessibility](