In brief: Durable goods orders drop 1 percent in May
WASHINGTON – Orders for U.S. durable goods tumbled 1 percent in May as demand for military equipment fell sharply. But excluding defense-related goods, orders actually rose, and orders in a key category that signals business investment also increased.
The gains outside of military goods suggest business spending is picking up, which could give the economy a much-needed boost.
The Commerce Department said Wednesday that orders, excluding defense, rose 0.6 percent in May, after falling 0.8 percent in April. Orders for core capital goods, which reflect business investment, increased 0.7 percent, after a 1.1 percent drop.
Demand for military goods is highly volatile and had surged in April, so the sharp drop in May wasn’t a surprise and was dismissed by many economists.
Factories reported higher demand for steel and other metals, computers and autos.
NEW YORK – Barnes & Noble hopes to survive by splitting in two.
The largest U.S. brick-and-mortar bookseller, beset by tough competition from online retailers like Amazon and discount stores like Wal-Mart, said Wednesday that it plans to split off its Nook e-reader division as it looks to boost shareholder value.
The company’s retail business, which has been outperforming its Nook unit, includes its bookstores and BN.com businesses. Nook Media, which counts software company Microsoft Corp. and educational book publisher Pearson Inc. among its investors, houses the digital and college businesses of Barnes & Noble.
CEO Michael Huseby said in an interview with the Associated Press that the separation is the best option for shareholders.
Barnes & Noble spent years investing heavily in its Nook e-book reader and e-book library, but they struggled to be profitable. Huseby said the company will continue to offer its Nook GlowLight e-reader but for the most part the Nook business will focus on software and its e-book library.
GoPro camera maker set to hit Wall Street
NEW YORK – GoPro has climbed mountaintops and dived to ocean bottoms. Now it’s headed somewhere only slightly tamer: Wall Street.
The maker of wearable sports cameras, loved by mountain climbers, divers, surfers and other extreme sports fans, said late Wednesday it sold 17.8 million shares at $24 each in its initial public offering of stock.
The IPO was priced at the high end of GoPro’s expected range and raised $427 million, valuing the whole company at about $3 billion. The proceeds from the IPO could rise to $491 million if underwriters use their option to buy more shares.
The stock will begin trading on the Nasdaq stock market today under ticker symbol “GPRO.”