Page 25 - ARUBA TODAY

BUSINESS Tuesday 5 december 2017
A25

Macy’s plans to Economists expect modest boost from tax cuts
hire 7,000 extra By PAUL WISEMAN expect tax law changes to American economy, up deal bring down America’s

holiday workers AP Economics Writer add 0.2 percentage points from 27 percent in Septem- trade deficits and guaran-
WASHINGTON (AP) — Econ- of growth to the U.S. econ- ber. NAFTA has expanded tee that more auto pro-
By A. D’INNOCENZIO omists expect a tax over- omy, down slightly from trade between the United duction moves to America.
AP Retail Writer haul to provide a modest what they expected in the States, Mexico and Cana- The NABE economists ex-
NEW YORK (AP) — Macy’s boost to the U.S. economy previous NABE survey in da, but President Donald pect the U.S. economy to
is hiring an additional 7,000 but are increasingly wor- September. The survey was Trump calls it a job-killing expand 2.2 percent this
seasonal associates this ried that a rewrite of the taken Nov. 6-15, before the disaster and is demanding year and 2.5 percent in
holiday season, saying traf- North American Free Trade Senate passed a major tax a better deal. 2018. They expect unem-
fic in its department stores Agreement will take a toll overhaul early Saturday. Talks to revamp NAFTA be- ployment to match Octo-
nationwide has been high. on growth. Forty-six percent of 51 pan- gan in August but have ber’s 4.1 percent through-
The company said that the The National Association elists believe the renego- bogged down over the out the first half of 2018,
hires will work on the sales of Business Economics sur- tiation of NAFTA will do at United States’ demands, in- and then slip to 4 percent
floors of its stores as well as vey found that forecasters least some damage to the cluding its insistence a new in the second half.q
fulfill online and pick-up-in-
store orders and do other
operational jobs. Most of Tech slump overshadows gains by telecoms, banks
the jobs are part-time.
They are in addition to the negative for tech compa-
80,000 temporary holiday nies,” said Ernie Cecilia,
workers Macy’s said it ex- chief investment officer at
pected to hire early in the Bryn Mawr Trust. “It’s just
fall. less positive for it than for
The news is encouraging other areas. The message
and is in line with overall is that although tax reform
retail industry reports that seems to be a positive, we
have indicated a strong have to see how that will
start to the season, with play out on individual com-
shoppers buying more panies and industries.”
than last year. Adding to the uncertainty
Macy’s needs a good holi- is the work that remains
day season after suffering for the tax overhaul to
11 straight quarters of sales become law. The Senate
declines for a key mea- and House of Representa-
sure. Macy’s, like many of tives still need to iron out
its department store peers, differences in their respec-
has been hit hard from tive proposals, and Cecilia
shoppers’ shift away from A trader works at the New York Stock Exchange. Telecom stocks, banks and other areas of the warned that stocks could
clothing and more toward market that stand to benefit the most from Washington’s drive to cut corporate tax rates jumped. see more ups and downs as
experiences. And when (AP Photo/Mark Lennihan) details come out in coming
shoppers do buying cloth- By STAN CHOE percent, to 24,290.05, and nies in the S&P 500, so they days about which compa-
ing, they’re going increas- AP Business Writer the Nasdaq composite fell stand to reap some of the nies will most benefit.
ingly to so-called off-price NEW YORK (AP) — Stock 72.22, or 1.1 percent, to biggest rewards of lower Congress still has a packed
chains like T.J. Maxx or on- indexes didn’t do much 6,775.37. tax rates. Telecom stocks in schedule, the tax-overhaul
line to Amazon.com. That at first glance on Monday, The cross-currents swept the index jumped 1.6 per- notwithstanding. Washing-
has helped reduce cus- but the modest move for through the market on the cent, tied for the biggest ton faces a deadline on Fri-
tomer traffic in the stores. the Standard & Poor’s 500 first day of trading after the gain of the 11 sectors in the day to avert a shutdown of
Macy’s has cut jobs and masked some dramatic Senate narrowly approved index. the government.
closed stores as well as em- changes roiling under- its proposal to revamp the Financial stocks, which Friday is also the day the
braced lots of strategies neath the surface. tax system. Indexes initially analysts also expect to be government will release its
to differentiate itself. That Telecom stocks, banks and jumped on expectations winners from the tax over- monthly jobs report, one of
means offering more ex- other areas of the market that lower tax rates would haul, likewise climbed 1.6 the last major economic
clusive fashions, expand- that stand to benefit the help corporate profits pile percent. reports before the Federal
ing an off-price brand, most from Washington’s up even higher, and the Technology companies, Reserve’s meeting next
and adding more gadgets drive to cut corporate tax S&P 500 was up as much meanwhile, will likely get week on interest rates.
to its stores. In October, it rates jumped. At the same as 0.9 percent in morning less of a boost. They al- Many economists expect
launched a loyalty pro- time, technology stocks trading. ready were typically pay- the Fed to approve the
gram that it hopes will bring slumped and gave up a Lower tax rates would help ing the lowest effective tax third rate increase of the
more shoppers through its chunk of the gains that boost profits for companies, rates of the 11 sectors in the year. And hanging over
doors. have made them the best- which already have been S&P 500, analysts said. everything in Washington is
Macy’s CEO Jeff Gennette performing part of the mar- reporting resurgent earn- Tech stocks in the index the investigation that con-
told The Associated Press ket by far this year. ings growth this year thanks dropped 1.9 percent, lag- tinues into Russia’s involve-
on Black Friday morning The New York Stock Ex- to the improving global ging far behind the rest of ment with last year’s presi-
that customer counts were change was nearly evenly economy. If profits do ac- the market. It’s a very dif- dential election. President
higher and business was split between stocks that celerate, it would help al- ferent position for the sec- Donald Trump’s former na-
better in the North and rose and fell, and the split lay worries that the stock tor, which has nearly dou- tional security adviser has
Northeast even with fewer in performance left the S&P market, which is still close to bled the performance of pleaded guilty to lying to
promotions from a year 500 close to where it be- record highs, has climbed the S&P 500 this year. The the FBI and has agreed to
ago. Last year, Macy’s gan the day. It dipped 2.78 too far, too quickly. strong gains earlier in the cooperate with the probe,
had a lot of unsold mer- points, or 0.1 percent, to Telecommunications com- year led some skeptics to which could threaten the
chandise from the third 2,639.44. panies pay some of the say that tech stocks had agenda set by Trump and
quarter that needed to be The Dow Jones industrial highest effective tax rates become overly pricey. his fellow Republicans in
liquidated.q average rose 58.46, or 0.2 among the big compa- “It’s not that the tax bill is control of Congress.q