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BUSINESSFriday 11 September 2015
Wall Street ends higher; investors parse Fed’s moves GE says will sell
transportation
BERNARD CONDON points, or 0.8 percent, to percent overall, the biggest mean the Fed raising rates finance to BMO
AP Business Writer 4,796.25. gain among the 10 industry sooner, and faster, than an-
NEW YORK (AP) — Stocks Global markets have been sectors of the S&P 500. ticipated. FAIRFIELD, Conn. (AP) —
in the U.S. bucked a glob- moving sharply up and The price of oil rose sharply “The Fed has to be mind- General Electric said Thurs-
al market slump Thursday down in recent weeks as in- after the Energy Depart- ful of all this job creation day it will sell its transpor-
as investors look ahead to vestors worry about a slow- ment reported a strong in- because, sooner or later, tation financing unit as it
a crucial Federal Reserve down in China, plunging crease in U.S. gasoline de- companies are going to continues to pare down its
meeting next week on in- currencies in developing mand. have to compete for work- lending division to focus on
terest rates. its industrial businesses.
Investors pushed major U.S. Trader Dermott Clancy, center, works on the floor of the New York Stock Exchange. Stocks in the BMO Financial Group will
indexes lower in the morn- U.S. bucked a global market slump Thursday as investors look ahead to a crucial Federal Reserve buy the GE Capital division,
ing following drops in Asia meeting next week on interest rates. which provides financ-
and Europe, then reversed ing to equipment makers,
course as oil prices rose. (AP Photo/Richard Drew) dealers and users of medi-
That helped send shares of um- and heavy-duty com-
energy companies, which countries like Malaysia and A report on unemploy- ers, and they’re going to mercial trucks and trailers.
have been battered in re- uncertainty over the Fed’s ment claims early Thursday compete by raising wag- The companies did not
cent weeks, higher. next move. In five of the showed fewer Americans es,” said David Joy, chief disclose exact terms of
Traders remain focused on six previous days of trading applied for benefits last market strategist at Ameri- the deal, but GE said it will
a two-day meeting of Fed- in September, the S&P 500 week, adding to recent prise Financial. “That will fil- add $700 million to a fund
eral Reserve policymakers has made big moves both evidence of robust hiring. ter into the Fed’s delibera- it wants to use to buy back
next week. They are trying up and down, including The Labor Department tions next week.” stock. GE said it expects to
to anticipate when and a surge of 2.5 percent on said weekly applications In Asia, Japan’s Nikkei 225 complete the sale in De-
how quickly the central Tuesday and a plunge of 3 benefits dropped 6,000 to slumped 2.5 percent af- cember.
bank will begin to raise in- percent on the first day of 275,000. ter surging 7.7 percent on General Electric has been
terest rates from their his- the month. A separate government Wednesday in its biggest making a push to focus
torically low levels. Those Trading was relatively light report the day before said gain since October 2008. on industrial businesses —
low rates have been a key on Thursday, with little news U.S. job openings jumped Hong Kong’s Hang Seng making large, complicat-
factor sending stock prices moving prices one way or to the highest level in 15 index dropped 2.6 per- ed equipment for other
higher over the past seven the other. years in July. A report last cent and China’s Shanghai companies — and shrink-
years. Apple jumped $2.42, or week showed the U.S. un- Composite Index finished ing its other businesses. The
A report Thursday showing 2.2 percent, to $112.57, employment rate fell to a 1.4 percent lower. company said in April that
a decline in applications on Thursday, a day after seven-year low of 5.1 per- European markets were it will sell most of GE Capi-
for unemployment claims the company introduced cent in August. mostly lower. France’s tal’s assets and also said
was the latest bullish sign updated versions of the Investors are not so sure CAC-40 lost 1.5 percent. it would sell $26.5 billion in
on the job market, which iPhone, Apple TV and iPad. they like the healthier Among U.S. stocks making real estate assets. In Au-
could prompt the Fed to Technology stocks rose 1 economy because it could big moves:q gust GE said it would sell
tighten credit. Some say its health care lending unit
worries about higher rates and related loans to Capi-
are overblown. tal One for $9 billion.
“The U.S. economy is in sig- GE has also sold its insur-
nificantly better shape than ance business and NBC
in the past,” said Mike Ryan, Universal in recent years.
chief investment strategist Last year it agreed to sell
at UBS Wealth Manage- its appliance business to
ment Americas. “We’re not Electrolux, although the
dependent on Fed largess U.S. government is trying to
and stimulus to support stop that deal.
growth.” The company said Thurs-
The Dow Jones industrial day that it expects to an-
average rose 76.83 points, nounce deals for most
or 0.5 percent, to close at of GE Capital’s U.S. busi-
16,330.40. The Standard & ness by the end of 2015.
Poor’s 500 index gained Earlier Thursday, GE said it
10.25 points, or 0.5 percent, may sell its GE Asset Man-
to 1,952.29. The Nasdaq agement division to an
composite climbed 39.72 investment management
firm with experience man-
United Technologies announces reorganization aging retirement plan as-
sets. The business man-
FARMINGTON, Conn. (AP) icut-based aerospace the year versus a year ago ert McDonough will be- aged $115 billion in assets
— United Technologies amid an economic slow- as of June 30.
Corp. officials have an- and building systems con- down in China. come president of United The Fairfield, Connecticut-
nounced a reorganization Two United Technologies based company said there
that includes running the glomerate said the moves executives will lead the two Technologies Climate, won’t be any change to
subsidiaries Otis Elevator companies, which had op- pension benefits received
and United Technologies announced Thursday will erated under United Tech- Controls & Security, which by GE pension plan par-
Climate, Controls & Secu- nologies Building & Indus- ticipants as a result of any
rity as stand-alonebusiness- sharpen the subsidiaries’ trial Systems. includes Carrier and other deal.
es with new presidents. Philippe Delpech will be General Electric Co. shares
The Farmington, Connect- focus by creating stronger president of Otis and Rob- brands. rose 13 cents to close at
$24.68 Thursday.q
lines of authority and ac- United Technologies shares
countability. slipped 45 cents to close at
The reorganization comes $91.40 Thursday. Its shares
after sales at Otis fell 7.5 per- have fallen almost 16 per-
cent in the first six months of cent over the past year.q
