Business News Roundup, Aug. 3

Consumer spending rose a solid 0.4 percent in June after an identical increase in May and a 1 percent surge in April, the Commerce Department said Tuesday.

The strength in June came from spending on nondurable goods, which offset a drop in spending on autos.

Economists say they think solid gains in hiring will support continued growth in consumer spending, which accounts for about 70 percent of the economy.

Sal Guatieri, senior economist at BMO Capital Markets, said the strength in June spending showed a solid end to the second quarter that would provide momentum for the third quarter.

Starbucks is recalling stainless steel straws it sold in its stores and online after three reports of children suffering mouth lacerations while using them.

Starbucks says people should not let children use the straws, which are rigid and can pose an injury risk.

The parents of “Star Trek” actor Anton Yelchin have sued the makers of the Jeep Grand Cherokee that killed the 27-year-old when it rolled down his driveway and crushed him.

The SUV was among those subject to a recall because its gear shifters have confused drivers, causing the vehicles to roll away unexpectedly and leading to dozens of injuries.

Yelchin died June 19 when his Jeep rolled down the driveway of his Los Angeles home, pinning him between a mailbox and a security fence.

The Redwood City company said the earnings, adjusted for one-time gains and costs, came to 7 cents per share.

The video game maker posted revenue of $682 million in the period, also beating expectations.

For the current quarter, which ends in October, Electronic Arts said it expects adjusted revenue in the range of $1.08 billion.

Shares in Fitbit jumped in after-hours trading Tuesday after the wearable device maker posted second-quarter results that topped Wall Street expectations.

Adjusted for stock option expense and non-recurring costs, profit was 12 cents per share.

Fitbit expects adjusted full-year earnings in the range of $1.12 to $1.24 per share, with revenue ranging from $2.5 billion to $2.6 billion.

The proposed drone delivery service born in Google’s experimental labs will test its system at a United States site, the White House announced as part of an initiative to push research and safety measures for unmanned flight.

The U.S. National Science Foundation will spend $35 million over the next five years on unmanned flight research, and the Department of Interior plans to expand its use of drone flights, according to the White House Office of Science and Technology Policy.

The White House push comes after the Federal Aviation Administration in June finalized its first set of drone regulations allowing broad commercial flights and establishing requirements for unmanned pilot licenses.

Project Wing’s test program will be the most significant drone delivery trial to date in the U.S. Amazon announced on July 26 that it would begin testing its drone delivery system in the United Kingdom.

Project Wing will conduct experiments at one of the six FAA-sanctioned drone test sites to lay the groundwork for future approvals, according to the White House.

Project Wing wants to equip its drones with tiny radio transponders that would identify their location to other aircraft and to controllers on the ground, Vos said.