Morning Business Report: Government shutdown stalls progress as layoffs loom, Rite Aid closes all stores

The White House is warning that federal employee layoffs could begin soon if negotiations to end the government shutdown continue to stall.

(NBC)- The White House is warning that federal employee layoffs could begin soon if negotiations to end the government shutdown continue to stall.
Economic advisor Kevin Hassett said President Donald Trump may move forward with cuts if talks “are absolutely going nowhere.” The shutdown has entered another week with no agreement in sight, as Democrats push to include permanent health care subsidies in any funding bill.

In business news, Rite Aid has officially closed all of its U.S. locations, according to a notice on the company’s website. The pharmacy chain—hit by opioid-related lawsuits, falling profits, and the rise of e-commerce—has filed for bankruptcy twice in the last two years. The site now directs former customers to retrieve their pharmacy records and find new locations where prescriptions were transferred.

On Wall Street, the S&P 500 retreated slightly from record highs Friday but still posted strong weekly gains, as investors appeared to shrug off shutdown concerns.

Meanwhile, Costco is expanding its health offerings. The retailer is partnering with Novo Nordisk to sell weight-loss injections through its member prescription program at a discounted rate of $499 for a four-week supply.

And American Airlines is removing its metal bag sizers from boarding gates nationwide. Passengers will no longer have to jam carry-ons into the frames to test their size—a welcome change for travelers hoping to avoid checked bag fees.