Page 25 - Aruba Today
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BUSINESS B9
Wednesday 30 March 2016
Reassurances from Fed on interest rates send stocks higher
MARLEY JAY fornia, in December. The Trader Tommy Kalikas works on the floor of the New York Stock Exchange. Stocks closed at their
AP Markets Writer FBI said it was able to hack highest level of the year Tuesday as investors welcomed the latest signal from the Federal Reserve
NEW YORK (AP) — Stocks into the phone, and asked that it will move slowly to raise interest rates.
closed at their highest level a court to vacate an order
of the year Tuesday as in- forcing Apple to help. Ap- (AP Photo/Richard Drew)
vestors welcomed the lat- ple had been fighting the
est signal from the Federal government’s efforts and
Reserve that it will move said it will continue trying
slowly to raise interest rates. to make its products more
Big names including Apple secure.
and Microsoft led technol- Microsoft added $1.17,
ogy stocks higher as the or 2.2 percent, to $54.71.
market made its biggest Information technology
gain in two weeks. company SAIC advanced
Stocks rose after Yellen $5.33, or 11.5 percent, to
confirmed that the Fed isn’t $51.88 after its fourth-quar-
in a hurry to raise interest ter profit was far larger than
rates. The Fed made similar analysts expected.
points just two weeks ago, Utility and telecommuni-
but since then, some mem- cations stocks, which pay
bers of the Fed’s decision hefty dividends similar to
making committee had bonds, also traded higher.
said they thought it was Financial stocks made only
time for rates to go higher. small gains and lagged
Yellen’s remarks boosted the market. They are able
all corners of the market, to charge more money on
and the price of gold rose lending when interest rates
along with stocks. Bond are higher, so the Fed’s
prices also rose and yields low-rate policy has hurt the
sank. sector. So has the weaken-
“A little bit of self-doubt ing price of oil, because
started to enter the trading investors are worried that
public’s mind,” said Sam loans to energy companies
Stovall, U.S. equity strategist won’t be repaid.
for S&P Capital IQ. “She re- Bank of America fell 20
assured investors.” cents, or 1.5 percent, to
The Dow Jones industrial $13.42 and Wells Fargo lost
average rose 97.72 points, 65 cents, or 1.3 percent, to
or 0.6 percent, to 17,633.11. $48.05.
The Standard & Poor’s 500 In her remarks to the Eco-
index gained 17.96 points, nomic Club of New York,
or 0.9 percent, to 2,055.01 Yellen said the Fed expects
Aided by the gains in tech to move slowly because
stocks and in small cap the U.S. economy and fi-
stocks, the Nasdaq com- nancial conditions have
posite index climbed 79.84 weakened over the last
points, or 1.7 percent, to few months, and global
4,846.62. pressures could harm the
Stocks were trading slightly U.S. economy. Those con-
lower before Yellen’s re- cerns include the possibil-
marks, but they moved ity of a broad economic
higher after the text of her slump, lower oil prices, and
comments was released. the shaky stock market.
The price of gold climbed The Fed cited similar rea-
while bond yields fell and sons earlier this month,
the dollar weakened. The when it said it expected to
yield on the 10-year U.S. raise rates twice this year,
Treasury note slid to 1.80 not four times.
percent from 1.89 percent. Benchmark U.S. crude
The euro rose to $1.1295 dropped $1.11, or 2.8 per-
from $1.1200. The dol- cent, to $38.28 a barrel
lar slipped to 112.75 yen in New York. Brent crude,
from 113.28 yen. Gold rose used to price international
$15.70, or 1.3 percent, to oils, lost $1.13, or 2.8 per-
$1,235.80 an ounce. cent, to $39.14 a barrel in
Apple climbed $2.51, or 2.4 London.
percent, to $107.70 after Home building companies
the FBI dropped its legal rose after Lennar reported
efforts to force Apple to strong quarterly results, sell-
break into the iPhone used ing more homes at higher
by Syed Farook, who along prices. Its stock gained
with his wife killed 14 peo- $1.48, or 3.2 percent, to
ple in San Bernadino, Cali- $48.18. q
