Page 25 - ARUBA TODAY

BUSINESS Wednesday 20 december 2017
A25

Tech, small-cap stocks pull back from their recent highs

By MARLEY JAY vestors are selling bonds
AP Markets Writer to buy stocks as the tax bill
NEW YORK (AP) — U.S. appears likely to pass, and
stocks declined Tuesday as they also feel the bill may
big technology companies contribute to inflation.
and smaller firms gave up “There’s this expectation
some of their recent gains. that we’ll see companies
Stocks hit record highs over save money on taxes, to
the previous two days as put it simply, and spend
the Republican-backed tax more in other areas,” she
bill made its way through said. Investors think “it’s go-
Congress. ing to have an impact on
Smaller companies in par- employment, wages, and
ticular have surged be- therefore inflation,” she
cause investors feel they said.
will be major beneficia- The tax bill passed through
ries of lower corporate tax the House, largely along
rates. High-dividend stocks party lines ahead of a Sen-
dropped as bond yields ate vote scheduled for
rose. Tuesday night. The $1.5 tril-
Investors like the proposed lion package would cut
tax cut because it would the corporate tax rate to 21
boost corporate profits percent from 35 percent, Trader Michael Capolino, center, works the floor at the New York Stock Exchange, Tuesday, Dec.
and likely raise stock prices and would slash taxes for 19, 2017.
along with it. The bill would the wealthy, with smaller (AP Photo/Mark Lennihan)
initially cut taxes for most cuts for middle-and low- gave up 30.91 points, or Dermott International said minimally invasive therapies
Americans but by 2027 income families. 0.4 percent, to 6,963.85. it will acquire engineering, business. Former CEO David
would increase tax bills for After the close of trading, The Russell 2000 index of procurement and con- Dvorak left the company in
most. House Republican lead- smaller-company stocks struction services compa- July. Zimmer gained $6.95,
While stocks weren’t do- ers said they will have to fell 12.17 points, or 0.8 per- ny Chicago Bridge & Iron. or 6.1 percent, to $121.38.
ing much Tuesday, bond hold another vote on the cent, to 1,536.75. It climbed The companies valued the Hospital operator Tenet
prices fell. The yield on the bill Wednesday because a almost 3 percent over the deal at $6 billion. McDer- Healthcare said it will cut
10-year Treasury note rose few provisions violate Sen- previous two days. mott fell 90 cents, or 11.9 another $100 million in costs
to its highest price in more ate rules. Apple fell $1.88, or 1.1 per- percent, to $6.69 and CB&I and will look to sell its Coni-
than a month, to 2.45 per- The Standard & Poor’s 500 cent, to $174.54 after it lost $1.91, or 10.7 percent, fer business, which provides
cent from 2.39 percent late index lost 8.69 points, or 0.3 closed at a new high on to $16.01. revenue management ser-
Monday. percent, to 2,681.47. The Monday. Visa lost $1.41, or Medical device maker Zim- vices. The company also
Invesco Global Market Dow Jones industrial aver- 1.2 percent, to $112.14. mer Biomet climbed after it said it will continue shak-
Strategist Kristina Hooper age shed 37.45 points, or Investors also traded on named Bryan Hanson to be ing up its board. Its stock
said two factors are send- 0.2 percent, to 24,754.75. corporate news. Offshore its new CEO. Hanson most gained 29 cents, or 2 per-
ing bond yields higher: in- The Nasdaq composite drilling platform maker Mc- recently led at Medtronic’s cent, to $15.03.q
Chinese tiremaker picks North Carolina site for major plant

By EMERY P. DALESIO ing and other incentives if it capital. Sentury Tire an- The plant is to be located would use about 400 acres
AP Business Writer meets hiring targets. nounced plans in 2016 to on a nearly 1,500-acre (160 hectares) of that site,
RALEIGH, N.C. (AP) — A The company said in a dis- develop a $530 million fac- (600-hectare) site between state Commerce Depart-
Chinese tiremaker is mov- closure to the Shanghai tory in LaGrange, Ga. Rocky Mount and Tarboro, ment spokesman David
ing more aggressively into Stock Market last month Triangle was the third-larg- which was offered as a lo- Rhodes said.q
the U.S. market, announc- that construction would est tire Chinese manufac- cation to potential manu-
ing plans Tuesday for a start next year on a two- turer based on 2015 global facturers needing lots of
North Carolina factory that phase plan to first build a sales, according to Tire Busi- space by the economic
is to eventually employ 800 factory producing 5 million ness, an Akron, Ohio-based development groups that
and produce six million tires passenger cars a year. That trade newspaper. Triangle assembled it. The site is
a year. would be followed by pro- ranked 17th among tire near the major Interstate 95
A state committee that ad- duction lines churning out 1 companies in worldwide road corridor and borders
ministers large corporate million commercial vehicle sales, the newspaper esti- a CSX Transportation rail
tax breaks approved plans tires a year. The company mated. line. Triangle’s operation
to coax Triangle Tire to ru- added that construction is
ral Edgecombe County, expected to take two to
about 65 miles (100 kilo- three years for each proj-
meters) east of the state ect.
capital of Raleigh. The $580 The Triangle factory marks
million plant is the first in the at least the third Chinese
United States for the Wei- tiremaker to build produc-
hai, China-based maker tion plants in the U.S.
of tires for passenger vehi- Wanli Tire Corp. said in
cles, trucks and buses and June it plans to build a
heavy equipment. factory employing at least
Triangle Tire could get up to 400 people and later rising
$152 million in state and lo- to 1,200 in South Carolina,
cal tax breaks, worker train- America’s tire-producing