Page 25 - aruba-today-20180113

BUSINESS A25
Saturday 13 January 2018

Holiday gift for retailers; sales up a solid 0.4 percent

By CHRIS RUGABER Friday, after a 0.9 percent omy and are more willing percent for three straight boost to disposable in-
AP Economics Writer surge in November. Spend- to spend. The unemploy- quarters for the first time comes from the recently-
WASHINGTON (AP) — ing for the two months ment rate is at a 17-year since 2005. enacted tax cuts suggest
Ebullient U.S. consumers combined was the best low of 4.1 percent. Healthy spending is also a that spending will continue
shopped at the healthiest since 2005. Oxford Economics, a con- good sign for the economy to grow at a healthy pace
pace in more than a de- The strong holiday shopping sulting firm, now forecasts this year. Consumer spend- over the first half of this
cade during the holiday figures caused economists the economy expanded at ing accounts for about 70 year,” Andrew Hunter, an
season, a sign of burgeon- to ramp up their estimates a 3.2 percent annual rate, percent of U.S. economic economist at Capital Eco-
ing economic strength. for economic growth in the up from 2.6 percent before output. nomics, said.
Retail sales rose 0.4 percent October-December quar- the report. “The improving labor mar- Retail sales rose 4.2 percent
in December, the Com- ter. Americans are more If accurate, that would ket, robust consumer con- in 2017, the most in three
merce Department said confident about the econ- mean growth topped 3 fidence and the imminent years.q

Stocks keep pushing higher in 2018, led by retailers

Trader Andrew Silverman works on the floor of the New York Stock Exchange. Rising retailers month following a 0.9 per- aid it provided the econ-
cent surge in November. omy following the Great
pushed U.S. stock indexes further into record territory on Friday, as the market’s fabulous start to The numbers fit with what Recession. The worry is that
individual retailers have a surprise spike in inflation
2018 carried through its second week. said recently, and several would force central banks
have raised their profit fore- to move more quickly on
(AP Photo/Richard Drew) casts as a result. rates than investors expect
Shares of Kohl’s, Target, and upset markets.
By STAN CHOE the gains without a hiccup, average climbed 228.46, Nordstrom and Dollar Tree Stocks have been remark-
all jumped more than 3 ably calm and strong for
AP Business Writer unlike earlier in the week or 0.9 percent, to 25,803.19, percent. more than a year. Sandy
Treasury yields, meanwhile, Villere, a partner and port-
NEW YORK (AP) — Rising when rate worries helped the Nasdaq composite rose after a key measure folio manager at Villere &
of inflation rose more last Co., said he’s optimistic
retailers pushed U.S. stock send the Standard & Poor’s rose 49.28, or 0.7 percent, month than economists ex- stocks can rise even further
pected. because the economy is
indexes further into record 500 lower for its lone blem- to 7,261.06 and the Russell Overall inflation slowed in strengthening and Wash-
December, but that was ington’s move to cut tax
territory on Friday, as the ish this year. 2000 index of small-cap mostly due to gasoline and rates last month will boost
other items that are prone corporate profits, among
market’s fabulous start to The S&P 500 rose 18.68 stocks gained 5.18, or 0.3 to quick changes in price. other reasons.
“Core” inflation, which But some caution is starting
2018 carried through its points, or 0.7 percent, to percent, to 1,591.97. looks at the steadier com- to creep in as prices keep
ponents of the consumer climbing. Villere said he’s
second week. 2,786.24 on Friday to close Retailers led the way af- price index, accelerated holding more cash than
more than expected last prior years as the types of
Interest rates also climbed out its seventh week of ter a government report month. stocks he prefers become
That pushed the yield on more difficult to find: com-
after a report showed that gains in the last eight. The confirmed that the holi- the two-year Treasury to panies with strong growth
2.00 percent from 1.98 but low prices relative to
a key component of in- index is already up more day shopping season was percent late Thursday. The their earnings and growth.
yield on the 10-year Trea- “We’re not fully invested at
flation accelerated last than 4 percent for 2018. a strong one, with retail sury note held steady at this point, but we haven’t
2.54 percent after climbing switched to pure defense
month. But stocks absorbed The Dow Jones industrial sales rising 0.4 percent last as high as 2.59 percent in yet either,” Villere said.
the morning. “Things are good enough
Investors have been pre- to keep things going sol-
paring for a gradual rise in idly, at least for the first half
rates, as the Federal Re- of 2018. We try not to be
serve slowly removes the greedy about it.” q

Texas tycoon T. Boone Pickens shutters energy hedge fund

By EMILY SCHMALL has not been good to me, dependent oil companies, Pickens expressed pleasure on long enough to see it
Associated Press from a health perspective Mesa Petroleum. at how the fund fared, de- all unfold. I’ve thrived and
FORT WORTH, Texas (AP) — or a financial one,” the The fund’s “performance spite the highs and lows. profited on the volatility in
Oil tycoon T. Boone Pick- 89-year-old Pickens said in was down in the last sev- “It has been one hell of a the energy space. But for
ens, who is recovering from a statement published on eral years,” Jay Rosser, roller coaster ride,” he said me, personally, trading oil is
a series of strokes and a fall his LinkedIn page. Slump- Pickens’ chief of staff, said in the statement. “I’ve seen not as intriguing to me as it
last year, said Friday that he ing oil and natural gas pric- Friday, declining to provide oil prices bounce around once was.”
is closing his Dallas energy- es knocked him off Forbes numbers. from $10 a barrel up to Pickens said two other in-
focused hedge fund after magazine’s rich list in 2013. “The whole energy space $147, down to $26 and now vestment vehicles, BP Ener-
what he described as “one Pickens founded BP Capital has been hard hit. We’re appear to be inching up gy Partners and BP Capital
hell of a roller coaster ride.” in 1996 after building one sadly in good company,” ever so slowly. Fund Advisors, will remain
“It’s no secret the past year of the country’s biggest in- he said. I’m ecstatic that I’ve hung open. q