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Mining company partners with Virginia Tech on rare earths plant

SUMMARY:

  • Aclara Resources plans to invest $10 million on separation pilot plant at
  • U.S. considers establishing rare earth a matter of national security
  • Aclara Resources is seeking location for full-scale separating facility

Canadian mining company Aclara Resources plans to invest about $10 million to establish a rare-earth elements separation pilot plant at the Virginia Tech Corporate Research Center, according to the company’s chief operating officer.

Rare earths are a group of 17 elements used to manufacture a wide range of high-tech products, including smartphones, electric vehicles and semiconductors, and has a monopoly on many of the elements and their processing.

The company plans to hire seven new workers for the pilot plant in . They will process rare earth feedstock from an Aclara mine in Brazil with solvent extraction to separate out high-purity light and heavy rare earth elements.

Aclara COO Hugh Broadhurst said he expects the facility to be up and running quickly: “Starting from September through Q4 this year, we’re going to be ramping up our operations there.”

The project will be conducted in cooperation with Virginia Tech.

Aclara Technologies, the company’s U.S.-based subsidiary, recently signed a nonbinding memorandum of understanding with the university, which, according to the parties, “lays the groundwork for a long-term academic and scientific alliance that includes Aclara’s rare earths separation pilot plant.”

“We’re going to be hiring Virginia Tech staff and students to supplement our own staff,” Broadhurst said, adding that students will also be able to do research at the facility.

Aclara first contacted Virginia Tech about a partnership earlier this year, according to Aaron Noble, head of the department of mining and minerals engineering in Virginia Tech’s College of Engineering.

In the past decade, Virginia Tech faculty members have led more than 64 federally sponsored rare earths projects totaling over $32 million in research funding. Additionally, Virginia Tech faculty have filed 11 invention disclosures related to rare earths and since 2021.

A partnership allows Aclara to layer Virginia Tech’s “extensive experience in rare earths” with the company’s operational know-how, according to a statement from Francisco Haussmann, a project superintendent for Aclara.

National security matter

China has a large stock of rare earth reserves and processes 90% of rare earths. Rare earth deposits can be found in other parts of the globe, but the United States has only one active rare earths mine, the Mountain Pass mine in California.

A July article in Econofact, an economic policy publication from Tufts University, summed up why that should matter to Americans: “The U.S. has almost no domestic capacity to process and refine rare earths into end-use components. … Dependence on China for these key components remains a vulnerability in the manufacturing supply chains for many military and high-technology products.”

“It’s something that various funding and federal agencies have been looking at for the last decade and trying to build both technology and human capacity for that, but we’re kind of getting to the point where [we’ve] got to do something now,” Noble said.

The urgency partially stems from China’s April announcement that it would impose export restrictions on seven rare earths as retaliation for tariffs imposed by . In June, China announced a deal that would loosen rare earths exports to the United States.

The two countries have paused tariff increases through Nov. 10, while U.S. and Chinese leaders negotiate a deal, but even without the trade war, experts view domestic processing of rare earths as an important goal to reduce supply chain dependency on China.

Establishing the pilot rare earths separation plant in Blacksburg, Broadhurst said, is a step toward addressing “a critical vulnerability for the United States and other countries.”

Building facilities needed to process rare earths is one thing; the United States also needs to bolster its workforce. The nation’s mining industry as a whole faces a shortage.

Virginia Tech is one of only 14 mining engineering programs in the United States. Last year, the university’s Department of Mining and Minerals Engineering graduated fewer than 30 students, according to Noble. A department job fair held in Blacksburg each year typically attracts representatives from about 50 companies.

The talent situation is even more grim when it comes to rare earths.

“Right now, China has all the capability, all the expertise, all the talent,” Noble said. “We’re trying to rebuild that outside of China, and that’s part of what this partnership is about.”

Students who work at Aclara’s pilot plant could find themselves working for the company after graduation.

Aclara is currently seeking a U.S. site — probably in the Southeast, according to Broadhurst —  to construct a full-scale rare earths separation plant by early 2029. The company, he says, has not yet determined how long the pilot plant will remain operational or if it will continue to run after the full-scale plant is running.

“Our customers are located in the U.S.,” Broadhurst said, “so it really makes sense for us to root ourselves in the United States so that we can provide product to them reliably and sustainably.”

Mary Washington Healthcare, UMW plan to launch medical school

SUMMARY:

  • Mary and the University of Mary Washington plan to launch ‘s first medical school
  • A $40 million conference and education center under construction could house future medical school programs
  • Medical school could open in 2029

is planning to partner with the University of Mary Washington to launch a new medical school — a move designed to address the shortage of in the region.

Dr. Christopher Newman, who became president and CEO of Mary Washington Healthcare in March and also serves on the university’s board of visitors, confirmed to that the university and health system are in “serious planning stages” for launching a medical school, which would be the first in Northern Virginia.

Newman pitched to UMW President Troy D. Paino the idea of the two entities collaborating on the creation of a medical school after a feasibility study conducted by national consulting firm Tripp Umbach had recently wrapped up, finding the proposed school viable. Numerous discussions about the proposed medical school also were held this summer with state representatives, Gov. Glenn Youngkin’s administration and community stakeholders, Newman added.

“We’re really starting to push things forward,” Newman said. “And the university has put it in their six-year strategic plan, which they are presenting to the state.”

The boards for the health system and the university plan to take up the matter this fall and will likely vote in 2026 to officially move forward with the project. The medical school would also require approval from the State Council of and the Virginia General Assembly.

Starting a new medical school typically costs around $200 million, Newman said, but a significant portion of that funding has already been invested through completed or in-progress facilities. For example, the health system broke ground in June on a $40 million, 39,000-square-foot building, located across from its Mary Washington Hospital, that will house a conference center and education facility, featuring a training space, classrooms, office space and simulation spaces. Construction is expected to be completed in the fourth quarter of 2026.

Initially, the Mary Washington Healthcare Conference Center will serve as home to a graduate program the health system launched in 2023, which includes physician residencies and fellowships. However, Newman said, the building could also be used in the future to house the medical school’s programs.

In addition to the center, medical school courses could also take place in various training clinics in the region, as well as UMW facilities like the hospital.

If approvals line up and “everything goes perfectly,” Newman said, the first class of about 100 medical students would be able to start learning at the medical school in 2029.

Shortages driving medical school

One of the main drivers for launching a medical school is what Newman describes as an “extreme physician shortage” in the Fredericksburg region.

“You would have an easier time finding a primary care doc in rural Wyoming or South Dakota than you would in the Fredericksburg region,” he said. “And folks that are moving into this area are definitely feeling that. And we’re also one of the fastest-growing regions in the country, particularly [in] the state of Virginia, and that’s only compounding the issue.”

Mary Washington Healthcare has approximately 1,000 credentialed providers, of which the health system employs 600, and the remainder are either private practice physicians or contracted physicians. And that’s “nowhere near the need,” Newman said. “So, we probably need twice that right now to be able to provide adequate access to the community.”

The health system has discussed investing millions into subsidizing tuition for medical students, he said, “because … on average, it’s about $100,000 a year a cost to train a medical student, and we want to keep the tuition reasonable so that we can attract local Virginia students into the medical school that would have a commitment of staying in the region.”

Newman noted that only about 25% of medical school graduates in Virginia remain in the state, and he hopes to change that, with Mary Washington offering a “community-focused” medical school.

While there are regulatory hurdles and details that need to be ironed out before the project can get underway, the health system and university feel “very optimistic” about bringing a medical school to the Fredericksburg region, Newman said.

Level 2 trauma center

In other news regarding the health system, Mary Washington Hospital announced on Wednesday that it had successfully been redesignated as a Level 2 trauma center by the .

The hospital says the redesignation recognizes Mary Washington Healthcare’s ongoing investment in advanced trauma care, medical staff expertise and specialized facilities designed to handle complex and life-threatening injuries.

“Our trauma center has always stood as a beacon of hope in moments of crisis,” Newman said in a statement. “This redesignation reflects our relentless pursuit of excellence and our dedication to ensuring patients receive the best possible care — right here at home. It means fewer transfers and faster access to life-saving treatment for our community.”

One level below the top Level 1 designation, Level 2 trauma centers include “24-hour immediate coverage by general surgeons, as well as coverage by the specialties of orthopedic surgery, neurosurgery, anesthesiology, , radiology and critical care,” according to the Falls Church-based American Trauma Society. However, it may need to transfer a patient to a Level 1 center to address more complex cases. Specialty requirements may be fulfilled by on call staff.

The designation makes Mary Washington Hospital the ninth Level 2 trauma center in the state, according to the state health department.

Mary Washington Healthcare is a nonprofit health care system that provides inpatient and outpatient care at over 80 facilities, including Mary Washington Hospital, a 471-bed tertiary hospital; Stafford Hospital, a 100-bed community hospital; four emergency departments; and a multispecialty graduate medical education program.

Trump calls on Federal Reserve governor to resign after official accuses her of mortgage fraud

SUMMARY:

  • calls for Fed governor ‘s
  • Cook accused of claiming two homes as primary residences
  • Dispute heightens Trump’s bid to influence central bank

WASHINGTON (AP) — on Wednesday called on governor Lisa Cook to resign after a member of his administration accused Cook of committing , the latest example of the ‘s efforts to gain control over the central bank.

Bill Pulte, director of the agency that oversees mortgage giants Fannie Mae and Freddie Mac, urged the Justice Department to investigate Cook, who was appointed to the Fed’s governing board by former president Joe in 2022. She was reappointed the following year to a term that lasts until 2038, the longest remaining term among the seven governors.

Pulte, in a letter to Attorney General , alleged that Cook claimed two homes as her principal residences in 2021 to fraudulently obtain better mortgage lending terms. On June 18 of that year she purchased a home in Ann Arbor, Michigan, and then two weeks later bought a condo in Atlanta, the letter said.

Pulte also charged that Cook has listed her condo in Atlanta for rent. Mortgages for homes used as principal residences typically carry lower interest rates than properties that are purchased to rent, the letter said.

The Federal Reserve declined to comment on the accusation. A Justice Department spokesperson also declined to comment.

The allegation represents another front in the Trump administration’s attack on the Fed, which has yet to cut its key interest rate as Trump has demanded. If Cook were to step down, then the White House could nominate a replacement. And Trump has said he would only appoint people who would support lower rates.

The more members of the Fed’s governing board that Trump can appoint, the more control he will be able to assert over the Fed, which has long been considered independent from day-to-day politics.

Trump will be able to replace Chair Jerome Powell in May 2026, when Powell’s term expires. Yet 12 members of the Fed’s interest-rate setting committee have a vote on whether to raise or lower interest rates, so even replacing the Chair doesn’t guarantee that Fed policy will shift the way Trump wants.

Yet appointing more board members would give Trump more power over the institution. All seven members of the Fed’s governing board are able to vote on rate decisions. The other five voters include the president of the Fed’s New York branch and a rotating group of four of the presidents of the Fed’s other 11 regional branches.

Trump appointed two members of the Fed’s board in his first term, Christopher Waller and Michelle Bowman. Both dissented July 30 from the central bank’s decision to keep its rate unchanged, in favor of a rate cut.

Another Fed governor, Adriana Kugler, stepped down unexpectedly Aug. 1, and Trump has appointed one of his economic advisers, Stephen Miran, to fill out the remainder of her term until January.

If Trump is able to replace Cook, the first Black woman to serve on the Fed’s board, as well as Kugler, that would give him a clear majority on the board of governors. If Powell leaves the board when his term as chair ends next May, then Trump will be able to fill a fifth spot. However, Powell could stay on the board until early 2028 after finishing his term as chair.

The presidents of the regional Federal Reserve banks are selected by the boards of directors of those banks, but are subject to the approval of the Fed’s board of governors. The terms of all 12 of the regional Fed presidents end next February.

Trump has for months demanded that the Federal Reserve reduce the short-term interest rate it controls, which currently stands at about 4.3%. He has also repeatedly insulted Powell, who has said that the Fed would like to see more evidence of how the economy evolves in response to Trump’s sweeping tariffs before making any moves. Powell has also said the duties threaten to raise inflation and slow growth.

Trump says that a lower rate would reduce the ‘s borrowing costs on $37 trillion in debt and boost the housing market by reducing mortgage rates. Yet mortgage borrowing costs do not always follow the Fed’s rate decisions.

The Trump administration has made similar claims of mortgage fraud against Democrats that Trump has attacked, including California Sen. Adam Schiff and New York Attorney General Letitia James.

Trump administration eyes 10% stake in Intel amid US chip push

SUMMARY:

  • seeks 10% U.S. stake in through grant conversion
  • Move aims to boost domestic chip production, curb reliance
  • Intel struggles with losses as rivals Nvidia and surge

SAN FRANCISCO (AP) — wants the U.S. to own a piece of Intel, less than two weeks after demanding the Silicon Valley pioneer dump the CEO that was hired to turn around the slumping chipmaker. If the goal is realized, the investment would deepen the ‘s involvement in the computer industry as the president ramps up the pressure for more U.S. companies to manufacture products domestically instead of relying on overseas suppliers.

What’s happening?

The Trump administration is in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel’s largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world’s largest economy.

Why would Trump do this?

In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around , to pay a 15% commission on their sales of chips in China in exchange for export licenses.

Trump’s interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country’s dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence.

Didn’t Trump want Intel’s CEO to quit?

That’s what the president said August 7 in an unequivocal post calling for Intel CEO to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan’s past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an “amazing story.”

Why would Intel do a deal?

The company isn’t commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone’s 2007 debut.

Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year.

Would this deal be unusual?

Although rare, it’s not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM.

Would the government run Intel?

U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel’s business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration’s financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company’s chips.

What government grants does Intel receive?

Intel was among the biggest beneficiaries of the Biden administration’s CHIPS and Science Act, but it hasn’t been able to revive its fortunes while falling behind on projects spawned by the program.

The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program — money that Lutnick derided as a “giveaway” that would better serve U.S. taxpayers if it’s turned into Intel stock. “We think America should get the benefit of the bargain,” Lutnick told CNBC. “It’s obvious that it’s the right move to make.”

Lowe’s to buy Foundation Building Materials for $8.8 billion

SUMMARY:

  • Lowe’s to acquire in $8.8B deal, closing in Q4
  • Move boosts Lowe’s presence in professional builder market
  • Rival expanding through GMS and SRS

is buying , a distributor of drywall, insulation and other products, for approximately $8.8 billion as the retailer intensifies its focus on .

FBM also provides metal framing, ceiling systems, commercial doors and hardware and other products that serve large residential and commercial professionals in both new and repair and remodel applications. It has more than 370 locations in the United States and Canada serving 40,000 professional customers.

The acquisition is part of Lowe’s move to provide more options for professional builders. The Mooresville, North Carolina-based company recently closed on its $1.3 billion acquisition of Artisan Design Group, a provider of design, distribution and installation services for interior surface finishes, including flooring, cabinets and countertops, to home builders and property managers.

Rival Home Depot has been making similar moves. In June the home improvement retailer announced that it was buying specialty building products distributor GMS for $4.3 billion.

GMS Inc. of Tucker, Georgia, is a distributor of specialty building products like drywall, steel framing and other supplies used in both residential and commercial projects.

Home Depot’s acquisition of GMS came after it purchased SRS Distribution, a materials provider for professionals, last year for more than $18 billion including debt. SRS provides materials for professionals like roofers, landscapers and pool contractors.

Neil Saunders, managing director of GlobalData, said that the professional builder market provides a growth opportunity to both Home Depot and Lowe’s as there’s a lot of spending in the segment.

“Pro is basically the new battleground for home improvement,” he said. “Naturally, with two big giants in the arena, there are likely to be some bruising battles ahead. However, at this stage, we believe the market is big enough and fragmented enough to allow both players to extract some wins.”

Lowe’s deal for FBM is expected to close in the fourth quarter.

Aside from the acquisition, Lowe’s reported its fiscal second-quarter financial results on Wednesday. The company posted an adjusted profit of $4.33 per share, which topped the $4.23 per share that analysts polled by Zacks Investment Research expected.

Revenue totaled $23.96 billion in the period, which met Wall Street’s expectations.

Lowe’s raised its full-year sales outlook to a range of $84.5 billion to $85.5 billion. It previous predicted sales would be between $83.5 billion and $84.5 billion for the year.

The company’s stock rose more than 3% before the market open.

Target taps longtime executive as new CEO amid sales slump

SUMMARY:

  • COO Michael Fiddelke named , replacing Brian Cornell after 11 years
  • Retailer faces weak sales, messy stores and market share losses to and TJ Maxx
  • Analysts question whether insider pick can reverse Target’s sales struggles

NEW YORK (AP) — Target is counting on a company veteran to revive its magic as it struggles to compete with rivals like Walmart.

The Minneapolis-based retailer said Wednesday that Chief Operating Officer Michael Fiddelke, who has been with Target for 20 years, will become CEO Feb. 1.

He succeeds Brian Cornell, who helped reenergize the company when he took the helm in 2014 but has struggled to turn around weak sales in a more competitive landscape since the COVID pandemic.

Fiddelke has overhauled Target’s supply network and expanded the company’s stores and digital services while cutting costs. In May, the company announced that he would lead a new office focused on faster decision-making to help accelerate sales growth.

Fiddelke is taking over at time when Target’s sales are in a funk, its stores are messy and understocked, and it’s losing market share to rivals.

He said he’s stepping into the role with three urgent priorities: reclaiming the company’s merchandising authority; improving the shopping experience by making sure shelves are consistently stocked and stores are clean; and investing in at the company’s stores and in its supply network.

“When we’re leading with swagger in our merchandising authority, when we have swagger in our marketing, and we’re setting the trend for retail, those are some of the moments I think that Target has been at its highest in my 20 years,” he said.

The change in leadership was announced Wednesday at the same time that Target reported another quarter of sluggish results.

The announcement surprised some analysts who expected Target to pick an outsider to turn things around. Neil Saunders, a managing director at GlobalData Retail, said he had mixed feelings.

“While we think Fiddelke is talented and has a somewhat different take on things compared to current CEO Brian Cornell, this is an internal appointment that does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years,” he said.

Target reported a 21% drop in net income in the quarter ended Aug. 2. Sales were down slightly and the company reported a 1.9% dip in comparable sales — those from established physical stores and online channels. Target has seen flat or declining comparable sales in eight out of the past 10 quarters including the latest period.

Target, which has about 1,980 U.S. stores, has been the focus of consumer boycotts since late January, when it joined rival Walmart and a number of other prominent American brands in scaling back corporate diversity, equity and inclusion initiatives.

Target’s sales also have languished as customers defect to Walmart and off-price department store chains like TJ Maxx in search of lower prices. But many analysts think Target is stumbling because consumers no longer consider it the place to go for affordable but stylish products, a niche that long ago earned the retailer the jokingly posh nickname “Tarzhay.”

In fact, out of 35 merchandise categories that Target tracks, it gained or maintained market share in only 14 during the first half of the company’s fiscal year, Fiddelke said.

Meanwhile, Walmart gained market share among households with incomes over $100,000 as U.S. inflation caused consumer prices to rise rapidly. Lower-income shoppers have driven customer growth at Target, suggesting it may have lost appeal with wealthier customers, according to market research firm Consumer Edge.

“It’s probably not the best sign, especially because higher-income consumers continue to hold up a little bit better” during times of economic uncertainty, said Consumer Edge Head of Insights Michael Gunther.

In March, members of Target’s executive team told investors they planned to regain the chain’s reputation for selling stylish goods at budget prices by expanding Target’s lineup of store label brands and shortening the time it took to get new items from the idea stage to store shelves. The moves would help the company stay close to trends, executives said.

“In a world where we operate today, our guests are looking for Tarzhay,” Cornell told investors. “Consumers coined that term decades ago to define how we elevate the everything everyday to something special, how we had unexpected fun in the shopping that would be otherwise routine.”

Before joining Target in 2014, Cornell, 66, spent more than 30 years in leadership positions at retail and consumer-product companies, including as chief marketing officer at Safeway Inc. and CEO at Michaels, Walmart’s Sam’s Club and PepsiCo America Foods. In September 2022, the board extended his contract for three more years and eliminated a policy requiring its chief executives to retire at age 65. When Fiddelke takes over, Cornell will transition to be executive chair of the board.

When he got to Target, the company was facing a different set of challenges.

Cornell replaced former CEO Gregg Steinhafel, who stepped down nearly five months after Target disclosed a huge data breach in which hackers stole millions of customers’ credit- and debit-card records. The theft badly damaged the chain’s reputation and profits.

Cornell reenergized sales by having his team rev up Target’s store brands. It now has 40 private label brands in its portfolio. And even before the pandemic, Cornell spearheaded the company’s mission to transform its stores into delivery hubs to cut down on costs and speed up deliveries.

Target’s 2017 acquisition of Shipt helped bolster the discounter’s same-day, store-based fulfillment services. Cornell also focused on making its stores better tailored to the local community

The coronavirus pandemic delivered outsized sales for Target as well as its peers as stayed home and bought pajamas, furnishings and kitchen items. And it continued to see a surge in sales as shoppers emerged from their homes and went to stores. But the spending sprees eventually subsided.

As inflation started to spike, Target reported a 52% drop in profits during its 2022 first quarter compared with a year earlier. Purchases of big TVs and appliances that Americans loaded up on during the pandemic faded, leaving the retailer with excess inventory that had to be sold off.

In July 2023, as shoppers feeling pinched by inflation curtailed their spending, Target said its comparable sales declined for the first time in six years.

Moreover, Target started losing its edge as an authority on style by focusing too much on home furnishings basics, and not enough trendy items, Fiddelke said.

A customer backlash over the annual line of LGBTQ+ Pride merchandise  carried that year further cut into sales.

Although Walmart retreated from its diversity initiatives first, Target has been the focus of more concerted consumer boycotts. Organizers have said they viewed Target’s action as a greater betrayal because the company previously had held itself out as a champion of inclusion.

Home Depot Q2 sales rise but miss Wall Street forecast

Summary

  • Q2 revenue rose to $45.28B, below $45.41B forecast
  • Comparable store sales rose 1% overall, 1.4% in U.S.
  • Consumers shift toward smaller projects
  • Company warns of modest price hikes from rising

‘s sales improved during its fiscal second quarter as consumers remained focused on smaller projects amid cost concerns and economic uncertainty, but its performance missed Wall Street’s expectations.

The Atlanta-based company also said shoppers should expect modest price increases in some categories as a result of rising tariff costs, though they won’t be broad-based. Company executives told analysts during the earnings call after the results were released that more than 50% of its products are sourced domestically and wouldn’t be subject to any tariffs.

In May, Home Depot said it didn’t expect to raise prices because of tariffs, saying it had spent years diversifying the sources for the goods on its shelves.

But Billy Bastek, executive vice president of merchandising at Home Depot, told analysts on Tuesday that tariff rates are significantly higher than they were when it released earnings results in May.

“Our customers tend to shop for the entire project, ” Bestek said. “And you think about a small flooring project, tile grout, bath tub and vanity and a bath project. And so we’re laser focused on protecting the cost of the entire project.”

Revenue for the three months ended August 3 climbed to $45.28 billion from $43.18 billion, but fell short of the $45.41 billion that analysts polled by FactSet were looking for.

Sales at stores open at least a year, a key indicator of a retailer’s health, rose 1%. In the U.S., comparable store sales increased 1.4%.

Home Depot’s stock surged more than 3% in Tuesday afternoon trading.

Neil Saunders, managing director of GlobalData, said that Home Depot saw consumers concentrating on smaller projects and gardening during the quarter.

“As the largest improvement player, Home Depot is getting the lion’s share of this growth and remains the number one destination for consumers due to strong customer service, a comprehensive range, and sharp pricing,” he said. “The latter factor will serve it well as consumers become more price conscious.”

Customer transactions declined less than 1% in the quarter. The amount shoppers spent rose to $90.01 per average receipt from $88.90 in the prior-year period.

“Our second quarter results were in line with our expectations,” Chair and Ted Decker said in a statement. “The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects.”

Home improvement retailers like Home Depot have been dealing with homeowners putting off bigger projects because of increased borrowing costs and lingering concerns about inflation.

The U.S. housing market has been in a sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows.

Sales of previously occupied homes have slumped as elevated mortgage rates and rising prices discourage home shoppers.

Sales of such homes in the U.S. slid in June to the slowest pace since last September as mortgage rates remained high and the national median sales price climbed to an all-time high of $435,300.

Home sales fell last year to their lowest level in nearly 30 years.

Home Depot earned $4.55 billion, or $4.58 per share, for the second quarter. A year ago, the Atlanta-based company earned $4.56 billion, or $4.60 per share.

Removing certain items, earnings were $4.68 per share. Wall Street was looking for earnings of $4.72 per share.

The company reaffirmed its fiscal 2025 forecast for total sales growth of about 2.8%. It still expects adjusted earnings to decline about 2% from $15.24 per share a year earlier.

FTC alleges Maryland reseller marked up tickets, including for Taylor Swift concerts

Summary

  •  filed suit against a Pikesville-based ticket reseller in Maryland .
  • Company allegedly resold nearly 400,000 tickets using fake IP addresses and other methods.
  • FTC claims violations of the Better Online Ticket Sales (BOTS) Act.
  • Resellers say they do not use bots and do not violate ‘s rules.

The Federal Trade Commission on Monday sued a Pikesville-based ticket reseller, alleging it illegally bought and marked up nearly 400,000 event tickets, including to concerts on Taylor Swift’s Eras Tour.

The FTC alleges that Key Investment Group, the company’s principals and related businesses used thousands of Ticketmaster accounts and credit card numbers, fake and proxy IP addresses, and other methods to buy at least 379,776 tickets in about a year.

It alleges that they bought $57 million worth of tickets in just over a year and sold “a portion” of them for $64 million, in violation of the Better Online Ticket Sales Act, or BOTS Act, which seeks to prevent resellers from using bots to circumvent ticket platforms’ security measures.

The trade regulator sued in Maryland , naming as defendants Key Investment Group, TotalTickets.com, Totally Tix, Front Rose Tix, WLK Investments, Key Investment Group Yair Rozmaryn, CFO Elan Rozmaryn and chief strategy officer Taylor Kurth.

“Defendants’ actions have injured consumers, who otherwise may have been able to purchase those tickets in the first instance from Ticketmaster at a lower price,” the lawsuit states.

“Today’s action puts brokers on notice that the -Vance FTC will police operations that unlawfully circumvent ticket sellers’ purchase limits, ensuring that consumers have an opportunity to buy tickets at fair prices,” FTC Chairman Andrew Ferguson stated in a news release.

Ferguson noted an executive order by that seeks to ban  in the  industry.

Ticketmaster did not respond to a request for comment.

Bezalel Stern, a partner at Manatt, Phelps & Phillips in , D.C., is representing Key Investment Group, the Rozmaryns and Kurth. Stern did not answer a phone call on Tuesday.

Among the allegations is that from March to August 2023, the defendants purchased 2,280 tickets to 38 Taylor Swift concerts. They paid $744,970 and resold the tickets for $1,961,9801.

A month ago, Key Investment Group preemptively sued Ferguson and other members of the FTC in an attempt to challenge the BOTS Act as applied. The lawsuit seeks declaratory judgment and injunctive relief, arguing that the BOTS Act is unconstitutionally vague as applied to the company.

“In order for their business model to make sense, Plaintiffs — and the rest of the legitimate secondary-ticket market — use multiple accounts to secure tickets,” the complaint states.

“Many other companies, businesses, and individuals also use multiple accounts to secure tickets. Defendants’ position is that any individual or company who uses more than one account to purchase tickets from a primary ticket seller, such as Ticketmaster, violates the BOTS Act.”

The complaint states that the ticket resellers do not use bots and do not violate Ticketmaster’s rules. It says Ticketmaster does not “enforce posted event ticket purchasing limits” or “maintain the integrity of posted online ticket purchasing order rules.”

“A violation of the BOTS Act requires the use of bots,” it adds. “Plaintiffs do not use bots.”

U.Va. medical school names interim dean

The University of Virginia and leadership last week announced will soon be its interim of the U.Va. School of Medicine.

He is succeeding , who is leaving as dean effective Sept. 3. Kibbe is the sole finalist for the presidency of the University of Texas Health Science Center at Houston, also known as UTHealth Houston. Last year, Kibbe and then- Health Dr. K. Craig Kent were the subjects of a no confidence vote by 128 UVA Health , who called for the two leaders’ resignations. Kent resigned in February, following a closed-session meeting of the U.Va. Board of Visitors.

U.Va. also announced that Dr. Howard Goodkin, former chair of U.Va.’s neurology department, will serve as Derdeyn’s senior adviser for a period of six months.

Derdeyn received his undergraduate and medical degrees from U.Va. After serving in various clinical and leadership roles at University of Iowa and Washington University School of Medicine/Barnes Jewish Hospital, he returned to his alma mater in January 2024 as chair of radiology and medical imaging.

“I will work to build trust, listen to all voices and ensure diverse perspectives are represented in our decisions,” Derdeyn said in a statement addressed to his colleagues. “ Our success depends on harnessing the strengths of every department and discipline. We face real challenges in the months ahead — recruitment, funding pressures, and the need to maintain momentum in a time of change — but I believe our extraordinary and our dedication to all our missions will carry us forward. Together, we can strengthen our foundation today and position ourselves for lasting success.”

The -based medical school enrolls 156 students each year.

Virginia Chamber appoints interim CEO

The of Commerce Board of Directors announced on Tuesday that it has appointed former chamber executive as interim president and , effective Sept. 2.

The announcement comes after former chamber President and CEO Cathie J. Vick resigned unexpectedly after only four months on the job.

Martin will lead the chamber — Virginia’s largest business advocacy organization with more than 30,000 members — while its board conducts a nationwide search for a permanent president and CEO. Additionally, Martin will assume the role of executive vice president of public policy and relations, overseeing the chamber’s policy and advocacy agenda.

“Keith is a proven leader with deep relationships across the business community, policymakers, and chambers throughout Virginia,” said board chair Linda Stanley in a statement, adding that the chamber’s board has “full confidence” in Martin’s ability to guide the chamber during the transition.

Martin has more than 20 years of experience in public policy and business advocacy, including a previous tenure working for the Virginia Chamber from 2011 to 2024 as executive vice president of public policy and general counsel, as well as executive director of the Virginia Chamber Foundation. According to his LinkedIn profile, he is currently director of government relations for Appalachian Power and previously served as a policy director for the Virginia Department of Transportation.

The chamber said Martin helped shape the chamber’s public policy recommendations, including significant contributions to three editions of Blueprint Virginia, the state’s comprehensive business plan. He also successfully managed the chamber’s legislative agenda through multiple General Assembly sessions.

“I am honored to return to the Virginia Chamber and to serve in this leadership role during such a critical time,” said Martin in a statement. “I look forward to working with the board, [the chamber] team and our members to advance the chamber’s mission and strengthen Virginia’s position as the best state for business.”

Martin has a law degree from Thomas Cooley Law School and both bachelor’s and master’s degrees from .