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BUSINESS Friday 1 November 2019
A25

Stocks move broadly lower as investors turn cautious

By DAMIAN J. TROISE The Russell 2000 index is
Associated Press on track to outpace the
NEW YORK (AP) — U.S. broader market in another
stocks moved broadly signal that investors were
lower Thursday as investors more confident this month
shifted to a more cautious and willing to take on more
stance following another risk. The index, which tracks
record high for the market smaller companies, rose
a day earlier. 2.2%.
Banks led the decline as POST-FED: The Federal Re-
bond yields made a signifi- serve's latest move reduces
cant move lower. The yield the short-term rate it con-
on the 10-year Treasury fell trols to a range between
to 1.71% from 1.79% late 1.5% and 1.75%. Investors
Wednesday. had anticipated the move
Yields were already fall- to lower interest rates,
ing in the early going and which is the third such rate
were given an extra shove cut this year.
lower following a surprising- The central bank has been
ly weak survey on business lowering rates in an effort
activity in the Midwest. to shore up U.S. economic
Industrial companies were In this Monday, Oct. 28, 2019, file photo trader Craig Esposito works on the floor of the New York growth as it faces threats
also among the biggest los- Stock Exchange. from the U.S.-China trade
ers. Caterpillar fell 2.2% and Associated Press war. On Wednesday, it in-
3M slipped 1.6%. dicated that it won't cut
Technology stocks fell, vestors moved money into to the government's an- company stocks fell 1%. rates again in the coming
despite solid gains from safe-play holdings. ticipated October employ- OCTOBER BUMP: The mar- months unless the econom-
iPhone maker Apple follow- The market is still on track ment report on Friday. ket is on pace to mark its ic outlook worsens.
ing an encouraging earn- for a weekly gain after the KEEPING SCORE: The S&P second straight monthly INVESTORS LIKE: Facebook
ings report. S&P 500 set two record 500 index fell 0.6% as of gain. The S&P 500 is up 1.7% rose 2.7% after the social
Facebook rose sharply af- highs this week. 12:25 Eastern time. The Dow in October as an easing of media company reported
ter releasing surprisingly Investors have been assess- Jones Industrial Average trade tensions and surpris- steady user growth during
good third-quarter results. ing a steady flow of earn- fell 206, or 0.8%, to 26,979. ingly good corporate earn- the third quarter and beat
Utilities held up better than ings and economic reports The Nasdaq fell 0.4%. The ings gave investors more Wall Street's earnings fore-
the rest of the market as in- and are still looking forward Russell 2000 index of smaller confidence. casts. q

Real estate stocks surge as investors balance risk

By DAMIAN J TROISE getting expensive." to shareholders. Many of
NEW YORK (AP) — In 2019, Stovall said real estate them have dividend yields
investors have relied on stocks are holding up well of more than 4% and are
bricks and mortar to bal- because investors feel they also insulated from poten-
ance the riskier parts of are not overvalued. tial swings in the market
their portfolios and get a Real estate investment created by the ongoing
good return. trusts, including HCP and trade dispute between the
The S&P 500's real estate Duke Realty are sought af- U.S. and China.
sector has been outpac- ter mainly for dividends. The Investors have been hedg-
ing the broader market stocks are legally required ing their bets throughout
throughout the year. It's to pay 90% of their income the year in other ways.q
the second best perform-
ing sector in the index, in
between technology and
communications compa-
nies. That risky and safe- In this June 26, 2019, file photo the rising sun peeks on the side of
haven sectors could simul- the Empire State Building seen from Jersey City, N.J.
taneously lead the market Associated Press
might seem contradictory,
but investors have needed
a hedge as the decade-
long bull market appears
threatened by a global
economic slowdown.
"It's like a barbell ap-
proach," said Sam Stovall,
chief investment strategist
at CFRA. "You have inves-
tors starving for yield and
they're looking at some of
the higher yield areas like
staples and utilities, but it's