Home Depot on Tuesday topped quarterly expectations, but cautioned that sales will be weaker than expected in the back half of the year as high interest rates and consumer uncertainty dampen demand.

The home improvement retailer said it now expects full-year comparable sales to decline by 3% to 4% compared with the prior fiscal year. It had previously expected comparable sales, a metric that takes out the impact of store openings and closures and other one-time factors, to decline about 1%.

Home Depot’s total annual sales will get a boost from its recently completed acquisition of SRS Distribution, a company that sells supplies to professionals in the landscaping, roofing or pool businesses. Total sales are expected to increase between 2.5% and 3.5% including a 53rd week in the fiscal year and approximately $6.4 billion in sales from SRS. Yet excluding sales from SRS, its new full-year forecast would have amounted to a revenue cut.

In an interview with CNBC, Chief Financial Officer Richard McPhail said Home Depot has contended with consumers who have a “deferral mindset” since the middle of 2023. Interest rates have caused them to put off buying and selling homes and borrowing money for bigger projects, such as a kitchen renovation. 

Yet over the past quarter, he said surveys of customers and home professionals like contractors have captured another challenge: a more cautious consumer.

“Pros tell us that, for the first time, their customers aren’t just deferring because of higher financing costs,” he said. “They’re deferring because of a sense of greater uncertainty in the economy.”

Here’s what the company reported compared with what Wall Street expected for the three-month period that ended July 28, based on a survey of analysts by LSEG:

The company’s shares were up nearly 2% in early afternoon trading.

Home Depot kicks off a wave of retail earnings, as economists, investors and politicians pay close attention to the health of the American consumer and try to forecast the economic outlook, including the odds of a recession. Though inflation has cooled, higher prices — particularly for everyday costs like groceries, energy and housing – continue to frustrate customers. They’ve also become a major talking point on the 2024 campaign trail.

Consumer clues will keep coming this week and next, as Walmart reports earnings and the government shares retail sales numbers on Thursday. Other retailers, including Target, Macy’s and Best Buy, will also post results in the coming weeks.

Compared with many other retailers, Home Depot has a more financially stable customer base. About half of its sales come from home professionals and about half come from do-it-yourself customers. About 90% of those DIY customers own their own homes.

Yet Home Depot still felt the impact of consumer uncertainty, McPhail said. He said the company saw slower demand for a wide range of project-driven items, including lighting and flooring.

Home Depot’s net income for the fiscal second quarter decreased to $4.56 billion, or $4.60 per share, from $4.66 billion, or $4.65 per share, in the year-ago period.

Revenue rose slightly from $42.92 billion in the year-ago period.

Comparable sales dropped 3.3% in the quarter across the business and declined 3.6% in the U.S. That was worse than the 2.1% decrease that analysts expected, according to StreetAccount.

It marked the seventh consecutive quarter of negative comparable sales at Home Depot.

Shoppers visited Home Depot’s stores and its website less frequently, and spent less when they did, during the quarter compared to the year-ago period. Customer transactions fell nearly 2% and average ticket dropped slightly to $88.90 from $90.07 in the year-ago quarter

Consumers have postponed projects in part because of a widely anticipated rate cut by the Federal Reserve, McPhail said. In late July, Fed Chair Jerome Powell said policymakers could cut rates at the central bank’s September meeting if the data supports it.

That would lead to lower mortgage rates and borrowing costs for homeowners who want to tack on an addition or finance a project, such as a bathroom remodel.

“What our customers tell their pros is, ‘Everything I read tells me interest rates will be lower in three to six months,’” McPhail said. ”‘Why would I borrow to finance the project now rather than just wait a few months?’”

Yet Home Depot leaders have emphasized home improvement’s bright long-term outlook, referring to the country’s aging homes, its shortage of houses and significant property value gains, especially during the years of the Covid pandemic. 

And McPhail said most of Home Depot’s customers remain financially healthy and employed, even if they’re spending less on home improvement right now.

Shares of Home Depot closed at $345.81 on Monday. As of Monday’s close, the company’s shares are down less than 1% so far this year, trailing behind the S&P 500′s 12% gains. 

– CNBC’s Robert Hum contributed to this story.

The Murdoch family feud taking place in an obscure Nevada court highlights the state’s surging popularity as a global center of family trusts and a friendly home to the world’s biggest fortunes.

According to legal industry rankings, Nevada is now the top state in the country when it comes to so-called asset-protection trusts like the one at the center of the Murdoch dispute. The state’s unique combination of no income taxes, iron-clad secrecy protections and strong defenses against creditors makes it the ideal location for big family trusts created to protect assets.

Nevada doesn’t report the total amount of assets in its trusts. The Western state’s fast-growing industry of trust and estate attorneys, trust companies and facilitators keeps a deliberately low profile. Yet experts estimate the state likely has hundreds of billions of dollars in trust assets locked away in nondescript office buildings or trust companies, offering little to no visibility to the outside world.

“Nevada is No. 1 and has been for at least four years,” said Steven Oshins, a Nevada attorney who publishes the most widely cited ranking of states based on their appeal to asset-protection trusts.

South Dakota is a “close second,” and then “there is a big drop-off for the next batch with Tennessee, Delaware and others,” Oshins added.

Nevada’s advantage puts it at the forefront of a massive wealth surge pouring into the asset-protection trusts. The U.S. hosted more than $5.6 trillion in trust and estate assets as of 2021 — more than double the level of 2011, according to data from economists Thomas Piketty, Emmanuel Saez and Gabriel Zucman. The estimate is just “the top of a multitrillion-dollar iceberg,” according to the group, since many trusts are not reported to the IRS.

Much of the recent growth is being driven by the so-called Great Wealth Transfer, in which over $80 trillion is expected to be passed down to the next generations, according to trust and estate attorneys. The possible expiration next year of the estate and gift tax exemption, which currently lets couples give away up to $27 million tax-free, is also driving the creation of new trusts. Fears of a global wealth tax, the IRS crackdown on wealthy taxpayers and a wave of foreign millionaires and billionaires using the U.S. as the latest offshore tax haven are also fueling demand.

In the race among states to attract the hundreds of billions of dollar in new trust assets, Nevada has a comfortable lead. Its legislature frequently updates its trust laws and regulations to make them more attractive.

Nevada has no state income tax, no corporate income tax and no inheritance tax, which helps trusts grow in value without having a chunk taken out. Its secrecy laws are also among the strictest in the country. In 2009, the legislature passed a law stating that any records submitted to the Division of Financial Institutions are “confidential.”

While all trust cases in Nevada are officially part of the public record, filing attorneys can use a new 2023 law to keep the trust name, settlors and beneficiaries confidential without a court order. Adding to the confidentiality, it is one of seven states that allow “silent trusts,” which permit the trustee to keep the existence of the trust from the beneficiaries under the trust terms.

Nevada is also unusual in having “no exception creditors” — meaning even ex-spouses, child support claims or lawsuit plaintiffs can’t gain access to a trust. Perhaps its most powerful advantage, and the one with direct bearing on the Murdoch case, is trust flexibility.

At the center of the Murdoch case is the Murdoch Family Trust, which holds the powerful voting shares in News Corp. and Fox Corp. that effectively control the companies. (The trust also contains the family farm in Australia, the Murdoch art collection and its Disney shares.)

Under the arrangement’s current terms, when Rupert Murdoch dies, control of the trust would pass to four of his children: Lachlan, James, Elisabeth and Prudence. Each would get one vote, meaning no sibling could gain control without the others. The trust was created as an irrevocable trust, meaning it’s designed to be permanent.

Yet according to The New York Times and The Wall Street Journal, Rupert Murdoch has moved to rewrite the trust to give Lachlan control after Rupert’s death. He argues that it’s in the best financial interests of the other children, which at least some of them have challenged. Spokespeople for News Corp. and Fox declined to comment.

Changing an irrevocable trust is virtually impossible in many states. Yet in Nevada, it’s common, thanks to a special carve-out known as “decanting.” The state allows irrevocable trusts to be decanted, or changed, into a new trust as long as certain provisions are met. In the case of the Murdoch dispute, Rupert will have to prove to a probate court that he is acting “in good faith and for the sole benefit of the heirs.”

“In Nevada, you can usually fix those things fairly easily,” said Elyse Tyrell, a probate lawyer with Tyrell Law PLLC in Henderson, Nevada. 

Trust and estate attorneys in Nevada said it’s slightly unusual for a trust donor — in this case Rupert Murdoch — to argue that he’s acting in the interests of heirs who are opposing him. Yet if he can make the case that Lachlan’s control would maximize the financial value of News Corp. and Fox Corp., and therefore benefit all the siblings, the court may take his side. The trial starts in September.

It’s also unusual for a family to be able to create a trust in Nevada without business or personal ties to the state. Residing in Nevada is not a requirement for establishing a trust. None of the Murdochs appear to own any homes in Nevada, and none of their businesses have any public headquarters there.

“Normally a family would have some ties in Nevada to establish trust, either living here or having real estate,” Tyrell said. “I don’t believe any of the Murdochs ever lived here.”

Starbucks is replacing its CEO with the head of Chipotle as it seeks to revive flagging sales and appease outside investors.

Starbucks announced Tuesday morning that Brian Niccol, who has led the burrito chain since 2018, will take over the coffee giant starting next month.

Laxman Narasimhan, who took over as Starbucks’ CEO in March 2023, is leaving the company.

Starbucks’ stock closed more than 24% higher, while Chipotle shares fell more than 7%.

Starbucks has struggled this year, hurt by weak sales in the U.S. and China. It had also faced increasing customer complaints about declining service quality and rising prices. It had recently come under pressure from so-called activist investors who’d purchased large stakes to force changes. Starbucks shares were down nearly 20% this year before Tuesday’s trading session.

Chipotle has faced similar gripes: It raised prices this year and also confronted a wave of social media criticism over uneven portion sizes. But Chipotle has better weathered those issues, recently reporting strong earnings that bucked a broader industry slowdown. Heading into Tuesday, its stock was up over 20% this year.

In its release announcing the change, Starbucks said Niccol had ‘transformed’ Chipotle.

‘His focus on people and culture, brand, menu innovation, operational excellence, and digital transformation have set new standards in the industry and driven significant growth and value creation,’ Starbucks said. It added that Chipotle’s stock price had increased nearly 800% during his tenure, ‘all while increasing wages for retail team members, expanding benefits, and strengthening the culture.’

Mellody Hobson, who stepped down as Starbucks’ chair to become lead independent director as part of Tuesday’s leadership shake-up, told CNBC on Tuesday that the board had been thinking about replacing Narasimhan for several months.

“Our board, a couple months ago, started to engage in a conversation about the leadership of the company, and I made an overture through someone to Brian, and he took the call,” Hobson said on CNBC’s “Squawk Box.” “We thought we had the opportunity to engage with one of the biggest names in the industry, someone whose track record is just clearly proven, not only through the spectacular results that he’s had at Chipotle, but also before that at Pizza Hut and Taco Bell. He knows this industry, and we thought he would be the right leader for this moment.”

Hobson acknowledged that Narasimhan faced some challenges coming into Starbucks without restaurant experience but added that he helped decrease turnover and address supply chain issues. However, it appears that the board has more confidence that Niccol will be able to turn the business around quickly.

“What we saw with Brian was someone who’s, quite honestly, been there, done that — through all sorts of market environments, all sorts of cycles. When I talked to him, I remember him saying, ‘I know what to do,’” Hobson said.

In a statement, Starbucks chairman emeritus and former CEO Howard Schultz, who had been critical of the company’s recent performance, praised the change.

“Having followed Brian’s leadership and transformation journey at Chipotle, I’ve long admired his leadership impact,’ Schultz said. ‘His retail excellence and track record in delivering extraordinary shareholder value recognizes the critical human element it takes to lead a culture and values driven enterprise. I believe he is the leader Starbucks needs at a pivotal moment in its history. He has my respect and full support.”

Starbucks Chief Financial Officer Rachel Ruggeri will step in as interim chief executive until Sept. 9, when Niccol officially takes over the top job.

Chipotle Chief Operating Officer Scott Boatwright will serve as interim CEO of the burrito chain. Chipotle CFO Jack Hartung, who had planned to retire next year, will stay on as president of strategy, finance and supply chain.

Mars will acquire Kellanova for $35.9 billion in cash, tying together some of the largest U.S. candy and snack brands, the companies announced Tuesday.

The M&M owner Mars is acquiring the Kellogg spin-off company for $83.50 per share, according to the press release. The addition of Kellanova, which separated from its parent company in 2023, will bring massive brands like Pringles and Cheez-Its to Mars’ snacking unit.

“Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision,” said Steve Cahillane, chairman, president and CEO of Kellanova, in a statement.

The move comes after Kellogg separated its business last year, with its cereal segment trading under WK Kellogg Co, and the remaining snacking and plant-based brands under Kellanova. Kellanova’s 2023 net sales topped $13 billion.

After years of high inflation, some consumers are pulling back on spending and struggling to afford brand-name snacks, making acquisitions more attractive. Many grocers have leaned into private-label options to entice consumers who are looking for value.

Mars’ buyout aims to create a “broader, global snacking business” through recognized and popular brands, according to Andrew Clarke, global president of Mars Snacking.

“The Kellanova brands significantly expand our Snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth,” Clarke said in a statement.

The growing snacking category includes brands marketed as healthier. Kellanova will bring products like RXBAR and Nutri-Grain to the Mars business, complementing KIND and other Mars snacks, according to the release.

The transaction is expected to close in the first half of 2025, according to the release.

Google on Tuesday announced new artificial intelligence features that are coming to Android devices. The move to bring its Gemini AI assistant to supported devices shows again how Google aims to put its AI in front of consumers before Apple, which will launch its AI on iPhones, Macs and iPads later this year.

Google doesn’t make a lot of money from its hardware business but the latest Android features could help drive new revenue through the company’s Gemini AI subscription program.

“We’ve completely rebuilt the assistant experience with Gemini, so you can speak to it naturally the way you would with another person,” said Android Ecosystem President Sameer Samat in a Tuesday blog post. “It can understand your intent, follow your train of thought and complete complex tasks.”

“Starting today, you can bring up Gemini’s overlay on top of the app you’re using to ask questions about what’s on your screen,” Samat wrote. It will be available on hundreds of phone models from dozens of device makers, according to Google.

Google previously had some AI features in Android, but this is the first year it’s heavily emphasizing new capabilities powered by a large AI language model installed on devices.

One example the company provided involved a user uploading a photo of a concert list and asking Gemini to see if their calendar is free, after which Gemini checks Google Calendar. If the user has availability in their schedule, Gemini offers to create a reminder to check ticket prices later that night.

The assistant can also perform tasks using information from Google apps.

“For example, Gemini can help create a daily workout routine based on your personal trainer’s email, or use your resume in Google Drive to write a work bio,” the company stated in its blog post. 

The company also said a user might ask the Gemini assistant to draft an email and “create an image of a cake for someone who loves space,” which the assistant can create and attach to the email. Or, in YouTube, a user might ask Gemini a question about the content in a video.

You can ask about what’s on your phone screen in other apps, too, like Maps, Flights and Gmail. Google said it’s working to add support for third-party extensions, which suggests developers may be able to add the option to their apps later.

Gemini’s assistant has a range of voices. A user can have a human-like conversation through its Gemini “Live” feature, which the company first announced at its May developer conference. “Live” will initially be available for select devices and subscribers to Google’s Gemini Advanced program, which costs $19.99 per month.

In June, Apple announced its long-awaited artificial intelligence push, Apple Intelligence, that can do tasks like recognize notifications important to personal context, and do cross-application tasking as well as letting Siri tap into OpenAI’s ChatGPT when needed for tasks such as its writing tools and creating images.

Apple’s system is currently in testing. Some early features will launch this fall alongside new iPhones, but the bulk of the system won’t be released until next year.

Google also announced its latest line of homegrown “Pixel” phones, including the Pixel 9, the Pixel 9 Pro, the Pixel 9 Pro XL and the Pixel 9 Pro Fold, which come with the Gemini AI features.

The Pixel 9 series has, among other new features, an upgraded camera and a screen that’s 35% brighter for better viewing in direct sunlight. It ships with Google’s latest Tensor G4 processor and 16GB of RAM to support AI use. RAM stands for random access memory —an important part of a computer’s hardware that stores data needed to run applications.

RAM is a crucial component for running artificial intelligence inside a smartphone. Google has said that the amount of memory is a major factor in determining whether a phone can run AI.

By contrast, only high-end iPhones released in 2023 can run Apple Intelligence, which AI developers believe is due to lower amounts of memory installed on older iPhones.

The Pixel 9 starts at $799, which costs $100 more than the Pixel 8, however, smartphone costs have risen across most phone makers in the last year. The Pixel 9 Pro, which comes with a free year of “Gemini Advanced” subscription, starts at $999 and the Pixel 9 Pro XL starts at $1,099. The Pixel 9 Pro Fold starts at $1,799.

Lastly, Google also announced the Pixel Watch 3. It’s available in two sizes, 41 millimeter and 45 mm, with larger screens than earlier models. New features include the option to plan running workouts, information on your recovery with readiness and cardio load data, and AI-powered workout recommendations. Google also said the Pixel Watch 3 is more deeply embedded with its ecosystem, allowing you to access Nest camera and doorbell feeds, the Google TV remote, offline Google Maps, and more. The Pixel Watch 3 offers up to 24 hours of battery life, or up to 36 hours with Battery Saver mode.

— CNBC’s Kif Leswing contributed to this report.

Wall Street believes Brian Niccol is the right choice to turn around Starbucks — and move the chain past the decadeslong Howard Schultz era.

Starbucks tapped Niccol as its latest chief executive and chair on Tuesday. Niccol replaces Laxman Narasimhan, who took over the top job in March 2023 after being handpicked by former CEO Schultz. In its last two quarters, Starbucks reported same-store sales declines as its U.S. business floundered. Once he takes over, Niccol will be charged with rejuvenating demand for the company’s coffee.

“In our view, Starbucks picks up a hall of fame restaurant CEO, and his appointment as Starbucks CEO and Chairman suggests a new era is underway,” TD Cowen analyst Andrew Charles wrote in a note to clients, emphasizing the importance of the combined role.

Investors are confident that he can revive the company. Shares of Starbucks climbed 20% in afternoon trading on the news, putting them on pace for their best day since the company’s IPO in 1992. Meanwhile, Chipotle’s stock fell 9% as shareholders bemoaned the loss of the longtime chief executive.

Piper Sandler, TD Cowen and Baird all upgraded Starbucks stock in the wake of the leadership changes.

Other analysts wrote glowingly of Niccol, seeing him as the right person to tackle Starbucks’ sluggish sales. A challenging consumer environment, worsening customer experience and rising competition from smaller coffee shops have hurt the chain’s performance recently.

“We view this as a dream hire for SBUX, and could not think of a more equipped leader to take a fresh look at SBUX’s operations, competitive positioning and overall strategy,” Oppenheimer analyst Brian Bittner said.

Niccol’s hiring could also spell the end of Schultz’s huge influence over the company he turned into a global coffee giant.

“Importantly, Brian is likely the one restaurant executive that has the gravitas to address the Howard Schultz Founder ‘overhang,’” Evercore ISI analyst David Palmer wrote.

Schultz served as CEO from 1986 to 2000, from 2008 to 2017 and then from 2022 to 2023, stepping in twice to save the company when sales turned sluggish. His last return sparked concerns about the company’s succession.

At the end of his last stint, he swore that he wouldn’t return as chief executive again, although his presence still looms large over the company. In May, after a brutal quarter for Starbucks, he wrote an open letter on LinkedIn about the company’s challenges and offered advice to its leaders — without naming Narasimhan.

Even after his retirement, Schultz’s involvement in the company has remained “a question hanging over the stock,” Morgan Stanley analyst Brian Harbour wrote in a note Tuesday. Mellody Hobson, who stepped down as Starbucks chair to become lead independent director as part of Tuesday’s leadership shake-up, said on CNBC’s “Squawk Box” that she told Schultz about the discussions with Niccol, keeping him in the loop despite him having no formal role within the company anymore.

Schultz also remains a major Starbucks shareholder, with a roughly 2% stake.

Schultz endorsed Niccol’s hiring in the press release announcing the shakeup. In a statement, the chairman emeritus said he believes that Niccol is the leader the company needs at a “pivotal moment in its history.”

Some analysts believe that having Niccol, an experienced restaurant CEO, in the driver’s seat could mean that Schultz finally moves on. Niccol will also succeed Hobson as chair of the board, giving him more latitude to make changes.

“This will be the last time investors care what he has to say because Niccol now has the wheel and there is no longer ANY room for a backseat driver,” Gordon Haskett analyst Don Bilson wrote.

Niccol also has previous experience taking over a founder-led brand and making it his own. When he joined Chipotle in 2018, he took the reins from founder Steve Ells, who had led the chain since 1993. Niccol moved the burrito chain’s headquarters from Denver to Newport Beach to attract different talent — and maybe evolve the brand from being founder-led, as Bernstein analyst Danilo Gargiulo wrote in a note.

While analysts largely cheered Niccol’s appointment, some were more cautious, noting that Starbucks is a larger and more complex business than Chipotle.

“Starbucks is a much more complicated model than Chipotle, with company and licensed stores, domestic and international locations, and a significant presence in struggling China,” BTIG analyst Peter Saleh wrote.

Chipotle has few licensed locations, except for some airport restaurants, and a relatively small international footprint, although Niccol has been pushing to grow its presence outside the U.S. in recent years.

Starbucks, on the other hand, has more international locations than U.S. cafes. And while investors have recently focused on the chain’s domestic performance, China, its second-largest market, has continued to struggle as competition there ramps up and the country’s economy lags.

Narasimhan said on the company’s latest conference call that he was exploring “strategic partnerships” for its China business, which could include a joint venture, tech partnership or other options. Niccol’s appointment could mean that Starbucks abandons that exploration, although he does have some experience with spinoffs from his time as head of Yum Brands’ Taco Bell. While he was there, the conglomerate spun off its China business into Yum China.

And while Chipotle’s burritos are still in high demand, consumers’ economic concerns have dampened their desire for coffee. That may prove to be a tougher hurdle for Niccol than investors anticipate.

“His challenge is to connect with a new customer,” Wedbush analyst Nick Setyan said. “Aside from the power to change the direction of macro headwinds, we view the shareholder euphoria (as expressed in the share price this morning) as premature.”

A construction boom in the U.S. has resulted in lower rents and other benefits for renters.

Record-construction activity since the pandemic has increased the supply of empty units, meaning more inventory is available for renters. More multi-family units were completed in June than in any month in nearly 50 years, according to Zillow Group, an online marketplace for real estate.

Landlords are taking notice and are now adding rent concessions — discounts, incentives or perks to attract new renters — like free weeks of rent or free parking. 

About a third, 33.2%, of landlords offered at least one rent concession in July across the U.S., up from 25.4% last year, Zillow found.

Meanwhile, the median asking rent prices for all bedroom counts slid in July, the first time that’s occurred since 2020, according to Redfin, a real estate brokerage site.

The median asking rent price for a studio or one-bedroom apartment fell 0.1% to $1,498 a month; two-bedroom apartments decreased 0.3% to $1,730; and units with three bedrooms or more, were down 2.% to $2,010, per Redfin data. 

Rents are still high because of how much prices climbed during the pandemic, said Chen Zhao, who leads the economics team at Redfin. But now, rent growth has flattened, which can be “good news for renters,” she said.

Metro areas in Florida and Texas, two Sun Belt states that have introduced a high number of newly built apartments since the pandemic, are seeing significant rent price declines as more units become available, according to Redfin.

For example, the median asking rent price in Austin, Texas, dropped to $1,458 in July, a 16.9% decline from a year prior, according to Redfin. It was the biggest drop among all other analyzed metro areas in the national report, the firm noted.

The median asking rent price in Jacksonville, Florida, declined 14.3% in the same timeframe, to $1,465, per Redfin.

To compare at a state-wide level, the median rent price in Texas stands at $1,950, according to Zillow. The median rent price in Florida is $2,500, the marketplace found.

Rent concessions are up from a year ago in 45 of the 50 largest metro areas in the U.S., according to Zillow.

The annual increase in the share of rental listings offering concessions is the highest in Jacksonville, Florida, which saw concessions rise 17 percentage points, followed by Charlotte, North Carolina (up 15.7 percentage points), Raleigh, North Carolina (up 14.7 percentage points), Atlanta (up 14.5 percentage points); and Austin, Texas (up 14.1 percentage points), per Zillow data.

Historically, wage growth and rent growth have been very linked, said Orphe Divounguy, a senior economist with Zillow’s Economic Research team.

How tight the labor market is can be predictive of how tight the housing market is going to be, he explained.

The labor market is winding down as the amount of candidates outnumbers the amount of jobs available. In July, nonfarm payroll increased by just 114,000 for the month, down from 179,000 in June, according to the Bureau of Labor Statistics. The unemployment rate jumped to 4.3%, the highest level since October of 2021.

“When wages are rising rapidly, that helps to support housing demand,” said Divounguy. “As the labor market loosens, we expect the rental market to continue to loosen.”

Wages are growing 4% to 5% year over year, said Zhao: “That’s good. That means that rents are actually falling relative to wages. Your wages are increasing more than rents are.” 

To be sure, wage growth has slowed down. Wages and salaries increased 5.1% in June for the 12-month period ending in June 2024 and increased 4.7% a year ago, according to the Bureau of Labor Statistics. 

Wage growth peaked at 9.3% in January 2022, and has slid down to 3.1% by mid-June and returning to pre-pandemic wage levels, according to Indeed Hiring Lab Institute.

LONDON — Travelers in Europe can now take unlimited flights for 499 euros ($550) a year under a new travel subscription service from budget carrier Wizz Air.

The annual “all you can fly” pass, which allows passengers to book one-way and roundtrip flights throughout the year, will be available for the introductory fee until Friday before the price rises to 599 euros.

Details on the airline’s website show passengers can book flights with “no limits” to any of its international destinations — including Athens, Greece, Madrid, Paris and Reykjavik, Iceland — up to three days before departure, with the booking window opening in September.

Each booking is subject to an additional flat fee of 9.99 euros and luggage beyond one personal item will be charged as extra.

The airline said it initially plans to release 10,000 “all you can fly” memberships, while FAQs on its website note that seats will be subject to availability, depending on “several external and internal factors.”

The launch follows similar subscription packages by U.S. carriers, such as Frontier Airlines, which last year announced a $599 unlimited Go Wild! pass for its North America routes.

However, while some European carriers offer multiflight bundles for a set fee, unlimited packages remain a novel concept on the Continent.

It comes as Wizz Air has seen its profits deteriorate and customer satisfaction wane amid wider pressure on the sector following the post-pandemic travel boom.

Earlier this month, the Hungarian airline reported a 44% drop in its first-quarter operating profit. Meantime, a customer satisfaction rating of 44% put it at the bottom of a February ranking of short-haul European carriers by consumer group Which?

CEO Jozsef Varadi told CNBC on the day of releasing its first-quarter results that supply constraints were impacting the company’s short-term outlook while inflationary pressures were weighing on consumer demand.

The airline, which already runs flights to the Maldives, Cairo and Dubai, United Arab Emirates, has previously said it is exploring new routes from Europe to India.