Page 24 - Minister Alex Schwengle

A24

BUSINESSSaturday 26 September

Late health care slump pushes stocks to weekly loss Hyundai recalls
470K Sonatas to
STEVE ROTHWELL The late sell-off on Friday gan their slide on Monday vestors were encouraged replace engines
AP Markets Writer pushed stocks to their third when Democratic presi- by a report that showed
NEW YORK (AP) — A late losing week in the last four. dential front-runner Hillary U.S. economic growth was TOM KRISHER
slump in health care stocks “This is a dangerous market Rodham Clinton pledged faster in the spring than AP Auto Writer
pushed the market to its that is still looking for direc- to stop “price gouging” previously estimated. DETROIT (AP) — Hyundai
third weekly loss this month. tion,” said Jerry Braakman, in the industry. The health The U.S. economy expand- is recalling nearly a half-
Stocks had traded solidly Chief Investment Officer care sector, a longtime ed at an annual rate of 3.9 million midsize cars in the
higher for most of the day, at First American Trust an favorite of investors, end- percent in the April-June U.S. to replace the engines
as banks, insurance com- investment management ed the week with its worst quarter, up from a previ- because a manufactur-
panies and brokerage firm. “Although the U.S. is weekly performance in ous estimate of 3.7 per- ing problem could cause
firms climbed after Federal continuing to improve, out- more than four years. cent, the Commerce De- them to fail. The recall cov-
Reserve Chair Janet Yellen side the U.S., it’s just scary.” Biotechnology shares in the partment reported Friday. ers 470,000 Sonata sedans
The strength came from from the 2011 and 2012
Trader David O’Day, left, works on the floor of the New York Stock Exchange. A late slump in gains in consumer spend- model years equipped
ing, business investment with 2-liter or 2.4-liter gaso-
health care stocks pushed the market to its third weekly loss this month. and residential construc- line engines. At the time,
tion. the Sonata was Hyundai’s
(AP Photo/Richard Drew) Financial companies got top-selling vehicle in the
a boost after Federal Re- U.S. The company also is
said that the policymakers The Standard & Poor’s S&P 500 dropped plunged serve Chair Janet Yellen recalling nearly 100,000
said that the central bank Accent small cars because
would likely raise interest 500 index fell 0.9 points, or during the week, pushing was still likely to raise inter- the brake lights can fail.
est rates this year. She sug- In documents on the So-
rates this year. The market less than 0.1 percent, to the overall health care in- gested global economic nata recall posted Friday
weakness won’t be signifi- by the U.S. National High-
gave up its most of its gains 1,931.34. The Dow Jones dex down 5.8 percent, its cant enough to alter the way Traffic Safety Admin-
central bank’s plan to raise istration, Hyundai says that
in the afternoon as a sell- industrial average gained worst week since August its key short-term rate from metal debris may not have
zero by December. Record been fully removed from
off in drugmakers led the 113.35 points, or 0.7 per- 2011. Vertex Pharmaceu- low interest rates since the the crankshaft area during
2008 global financial cri- manufacturing at Hyun-
health care sector lower. cent, to 16,314.67. The Nas- ticals, which focuses on sis have been a boon for dai’s Alabama engine
stocks, underpinning a bull plant. That can restrict oil
The stock market has been daq composite fell 47.98 developing drugs for cystic market that has run for six flow to the connecting rod
and a half years. bearings, and since they
volatile for the past six points, or 1 percent, to fibrosis and viral infections, The combination of high- are cooled by oil, they
er rates and a growing could fail. If that happens,
weeks on worries about 4,686.50. was the biggest decliner in economy is good for fi- the engines could stall and
nancial companies. That’s cause a crash. So far, Hyun-
the impact of slowing The S&P 500 closed down the index on Friday, drop- because they can earn dai said it has no reports of
more from making loans. crashes or injuries from the
growth in China and other 1.4 percent for the week, ping $7.83, or 7 percent, to Citigroup rose $1.42, or problem. The company
2.9 percent, to $50.55 and said in documents that a
emerging markets, as well the Dow was 0.4 percent $103.20. Bank of America climbed worn connecting rod bear-
34 cents, or 2.2 percent, to ing will make a cyclical
as uncertainty about the lower. The market had started the $15.89. knocking noise, and it also
“The financials are a won- could cause the oil pressure
outlook for interest rates. Shares of drugmakers be- day with solid gains as in- derful place to be over warning light to illuminate.
the next several quarters Continued driving with the
if a rate rises materializes,” problem can cause the
said Jim Russell, a portfolio bearing to fail and engine
manager at Bahl & Gaynor stalling. The company said
Investment Counsel.q that the 2011 Sonata was
the first Hyundai vehicle to
Japan core inflation falls in August on low oil prices use engines made in Ala-
bama, where the compa-
TOKYO (AP) — Japan the central bank launched flationary doldrums that it profits to invest overseas ny initially used a mechani-
inched back into deflation- massive asset purchases says is stifling growth. while consumers have re- cal process to remove
ary territory in August as that are pumping 80 trillion Excluding both energy mained relatively frugal. machining debris from the
lower oil prices pulled core yen ($670 billion) a year and food prices, the price Prime Minister Shinzo Abe crankshaft. That process
inflation excluding volatile into the economy in a bid index rose 0.8 percent in announced Thursday an was changed to a high
food prices lower. to push prices higher. August, compared with 0.6 update of his economic pressure wet blasting sys-
The core consumer price With oil prices below $50 percent in the previous two policies, setting a target for tem in April of 2012. Hyun-
index slipped 0.1 percent a barrel, upward pressure months. a 600 trillion yen ($5 trillion) dai discovered the prob-
after remaining flat in July. on prices has eased, hin- Theoretically, expectations economy. lem when owners started
The “headline” inflation dering those efforts. The of higher inflation would The plan focused mainly reporting engine noise. In
rate, which includes both government has made lead families and busi- on promises of improved June of 2015, NHTSA raised
food and energy data, achieving an inflation rate nesses to step up spending social welfare policies to the issue with Hyundai,
was flat at 0.2 percent. of about 2 percent a key to beat price increases. help alleviate the burden which said it didn’t consid-
It was the first time the aim of its strategy for forc- But companies have used of child and elder care er the issue to be a safety
core inflation measure ing the world’s third-largest massive cash piles accu- and encourage a higher problem because owners
had dipped lower since economy out of the de- mulated thanks to record birth rate.q would get warnings.q