Page 25 - ARUBA TODAY

BUSINESS Thursday 24 May 2018
A25

Fed gives stocks a boost; technology and retailers rally

By MARLEY JAY ter the 2008 financial crisis.
NEW YORK (AP) — U.S. stocks President Donald Trump
turned higher Wednesday is expected to sign it into
after the Federal Reserve law. Real estate investment
indicated it's not in a hurry trusts, utilities, and other
to raise interest rates too stocks that pay large divi-
quickly. Retailers and tech- dends rose. Those stocks
nology companies led the are often considered al-
way as the market erased ternatives to bonds, and
some early losses. investors who want income
Stocks opened lower after often buy them when bond
a business survey suggest- yields decrease.
ed that the eurozone econ- Comcast said it is preparing
omy might remain weak for an all-cash offer for Twenty-
longer than experts had First Century Fox's entertain-
expected. Investors bought ment divisions, and said
U.S. and European govern- it plans to bid more than
ment bonds, which sent the $52.4 billion Disney of-
yields and interest rates fered. Comcast didn't dis-
lower and hurt banks. The close other details about its
S&P 500 index fell as much plans. Fox rose 1.6 percent
as 14 points early on. to $38.77 while Comcast
The market turned higher fell 1.9 percent to $31.88,
after the Fed released min- and Disney slid 1.1 percent
utes from its meeting in ear- to $102.89
ly May. Officials concluded Benchmark U.S. crude lost
that the Fed should be on 0.5 percent to $71.84 per
track to keep raising inter- barrel in New York. Brent
est rates gradually, and crude, used to price inter-
some said it wouldn't be a national oils, rose 0.3 per-
problem if inflation briefly cent to $79.80 a barrel in
went past the Fed's target London.
rate of 2 percent. That sug- Wholesale gasoline lost 0.4
gests the Fed won't raise percent to $2.26 a gallon.
interest rates too quickly, a Heating oil rose 0.4 percent
development that worries to $2.29 a gallon. Natural
investors because it would gas added 0.2 percent to
slow down economic $2.91 per 1,000 cubic feet.
growth. The dollar dropped to
"Investors are sort of ner- 110.07 yen from 111.02 yen.
vous around an overly ag- In this April 24, 2018, file photo, the sun shines from behind the New York Stock Exchange in New The euro fell to $1.698 from
gressive Fed at this point in York. The U.S. stock market opens at 9:30 a.m. EDT on Wednesday, May 23. $1.1779.
the cycle maybe throwing Associated Press Gold lost 0.2 percent to
us into a recession," said $1,289.60 an ounce. Silver
Katie Nixon, chief invest- expects to raise rates a to- of expectations. The big managers' index, a broad fell 1 percent to $16.41 an
ment officer for Northern tal of three times this year box retailer said more cus- gauge of business activity ounce. Copper plunged 2
Trust Wealth Management. and some experts believe tomers came to its stores in Europe, fell to its lowest percent to $3.07 a pound.
The S&P 500 index rose 8.85 it will raise rates as many as and sales improved, but it's level in 18 months in May. Japan's benchmark Nik-
points, or 0.3 percent, to four times. Nixon, of North- spending a lot of money to While the European econo- kei 225 fell 1.2 percent
2,733.29. The Dow Jones ern Trust, said she expects try to reinvent itself to bet- my is still growing, investors and South Korea's Kospi
industrial average gained only two rate increases: she ter compete with Amazon. had hoped for signs the gained 0.3 percent. Hong
52.40 points, or 0.2 percent, said the Fed might leave Target plans to spend $7 bil- doldrums were clearing. Kong's Hang Seng lost 1.8
to 24,886.81. The Nasdaq rates alone after June if it lion through 2020 to update Germany's DAX gave up percent.q
composite climbed 47.50 sees signs the economy is stores and open smaller lo- 1.5 percent and France's
points, or 0.6 percent, to slowing down a bit as the cations in urban markets. CAC 40 fell 1.3 percent
7,425.96. The Russell 2000 effects of last year's tax The stock sank 5.7 percent while the British FTSE 100
index of smaller-company cuts fade. to $71.17. lost 1.1 percent. Investors
stocks added 2.37 points, Tiffany sparkled in the first Home improvement re- bought European govern-
or 0.1 percent, to 1,627.61. quarter as the jewelry com- tailer Lowe's had a mostly ment bonds, pushing prices
Federal Reserve officials left pany's earnings and sales disappointing first quarter higher and yields lower in
interest rates unchanged blew past Wall Street pro- as harsh winter weather cut Germany, Spain, France
in early May and investors jections. The company also into the traditional spring and the U.K.
expect they will raise them said it's planning to buy sales season, but the com- Bond prices climbed in the
in mid-June. The central back $1 billion in its own pany forecast stronger U.S. as well. The yield on the
bank's members discussed stock. The stock jumped sales growth for the rest of 10-year Treasury note fell to
concerns such as rising 23.3 percent to $126.05. the year. The stock surged 2.99 percent from 3.06 per-
wage pressures and pos- Also rising after its quarterly 10.4 percent to $94.69. cent. With interest rates in
sible negative reactions to report was Ralph Lauren, Lowe's stock and its sales decline, banks lost ground.
the Trump administration's which jumped 14.3 percent have lagged behind Home Banks climbed Tuesday
trade policies, but didn't to $133.33. Depot, but it made up before Congress passed
change their overall views. Target slumped after its ground on Wednesday. a bill that eases some of
The central bank has said it first-quarter profit fell short The IHS Market purchasing the regulations passed af-