Retail sales power on

Shell suspends shipments in the Red Sea, December retail sales beat expectations, and more [View this email in your browser]( [What makes a subscription to The Week so valuable now? Click the banner]( [The Week]( Daily business briefing 1. [Shell halts shipments through the Red Sea]( British oil giant Shell has halted shipments through the Red Sea due to fears that attacks on vessels by Houthi rebels in Yemen could escalate following [U.S. and U.K. strikes against Houthi targets]( The Wall Street Journal reported Wednesday, citing people familiar with the matter. The United States and Britain hit Houthi military targets after the Iranian-backed group launched dozens of missiles and drones at commercial ships in the region, purportedly in a show of support for Hamas in its war with Israel in Gaza. A tanker chartered by Shell was targeted by a drone and Houthi boats last month. Shell CEO Wael Sawan said at the World Economic Forum in Davos, Switzerland, that rerouting ships will increase costs. [The Wall Street Journal]( 2. [Retail sales beat expectations]( Retail sales rose 0.6% in December compared to the previous month, the Commerce Department reported Wednesday. The gains beat economists' expectations and marked an acceleration after November's 0.3% increase. Retail sales data is adjusted for seasonal swings but not inflation, according to CNN. Sales at department stores had the biggest gains, rising 3%, while gas stations, furniture stores and personal-care retailers saw a drop. A strong labor market can boost sales, and the retail data followed government figures showing that hiring remained solid and unemployment held at a low 3.7% last month. Together, the figures fueled expectations that shoppers could continue helping to keep the economy strong this year. [CNN]( 3. [Stocks struggle to recover as rate-cut hopes dim]( U.S. stocks dropped on Wednesday after stronger-than-expected December retail sales data dampened investors' hopes that the [Federal Reserve might start cutting interest rates]( as soon as March. As benchmark 10-year Treasury yields climbed, the Dow Jones Industrial Average fell 0.3%. The S&P 500 and the tech-heavy Nasdaq dropped 0.6%. The S&P 500 real estate sector index, which is particularly sensitive to interest rates, fell 2.7% to the lowest level in a month. U.S. stock futures rose slightly early Thursday coming off the losing session. Dow futures were flat, but those tied the S&P 500 and the Nasdaq were up 0.4% and 0.7%, respectively, at 7 a.m. ET. [Reuters]( [CNBC]( 4. [Apple to sell Apple Watches without banned blood-oxygen feature]( Apple said it would start selling the Apple Watch Series 9 and Apple Watch Ultra 2 without their blood oxygen sensor, a feature banned due to an ongoing patent case. The iPhone maker said it would make the revised versions of its newest Apple Watches available on its website starting at 9 a.m. Apple said the change would have "no impact" on Apple Watch users who already have the versions with the health feature. A court filing confirmed earlier this week that the versions with the blood oxygen features removed had been approved for sale. Apple made the change with a software workaround, Bloomberg reported, so the new models will include the tool, but it won't function. [Bloomberg]( [The Verge]( 5. [Freezing temperatures frustrate EV owners]( The bitter cold gripping much of the United States this week has reminded electric-vehicle owners of a key drawback to the technology — the batteries lose range and efficiency in freezing temperatures. In Chicago, where temperatures dropped below zero, frustrated drivers lined up at charging stations, The New York Times reported Wednesday. Uber driver Javed Spencer told the Times he set out to charge his rented Chevy Bolt with his battery showing 30 miles of charge but it quickly died, so he had to get towed to the charging station. "It's kind of like, I don't really want a Tesla," said Joshalin Rivera, who woke up once to find a third of her 2023 Tesla Model 3 battery had drained overnight. [The New York Times]( [Share to Facebook]( [Share to Twitter]( [Share via email](mailto:?Subject= Freezing temperatures frustrate EV owners &body=Read the story here utm_campaign=business_briefing_newsletter_20240118&utm_source=business_briefing_newsletter)   [Read more business stories at theweek.com](     [Play The Week's daily puzzles](   Popular reads [Trump and his lawyer Alina Habba had a rough day in court]( [Schools are suffering from low attendance]( ['New denial': There's a shift in climate denialism on YouTube](   [Read more on theweek.com](     [What makes a subscription to The Week so valuable now? Click the banner](   © Future US, Inc • [theweek.com]( [Unsubscribe from this newsletter]( [Privacy Policy]( The Week is published by Future US, Inc. Full 7th Floor, 130 West 42nd Street, New York, NY, 10036.