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BUSINESSSaturday 29 April 2017
Stocks close modestly lower; end higher for the week Royal Bank of
ALEX VEIGA
AP Business Writer
U.S. stocks closed modestly
lower Friday, ending just
short of another milestone
for Wall Street.
The Nasdaq composite
index narrowly missed its
fourth record-high close
this week, though all the
Trader John Panin works on the floor of the New York Stock Exchange. U.S. stocks closed modestly
lower Friday, ending just short of another milestone for Wall Street.
major indexes still notched
weekly gains.
Phone companies, banks
and materials stocks were
among the big decliners.
Technology stocks gained
the most, while health care
and energy also bucked
the broader market slide.
Crude oil prices rose.
Investors continued to fo-
cus on company earnings
reports as they mine for
insight into the health of
Corporate America. So far,
earnings have been mostly
exceeding Wall Street’s
expectations. But an un-
impressive report on eco-
nomic growth in the first
quarter may have given
some traders pause Friday.
“The market is worried that
UBS profits rise on trading, commission earnings hands as soon as we can
GENEVA (AP) — Swiss bank
UBS has reported a near
doubling in its first quar-
ter net profit to 1.3 billion welcomed by the bank’s
francs ($1.3 billion), as its management as it tries to
wealth management and
investment banking opera-
tions grew.
the second quarter per-
haps will see continued
weakness, and that’s part
of the tug-of-war we’re
seeing in the market,” said
Quincy Krosby, market
strategist at Prudential Fi-
nancial. “Are we going to
see the economy snapping
out of this weak patch?”
The Standard & Poor’s 500
index slipped 4.57 points,
or 0.2 percent, to 2,384.20.
The Dow Jones industrial
average fell 40.82 points,
or 0.2 percent, to 20,940.51.
The Nasdaq composite lost
1.33 points, or 0.02 percent,
to 6,047.61.
Small-company stocks fell
more than the rest of the
market. The Russell 2000
index gave back 16.70
points, or 1.2 percent, to
1,400.43. Three stocks fell
for every two that rose on
the New York Stock Ex-
change.
Bond prices edged higher.
The 10-year Treasury yield
slipped to 2.28 percent
from 2.30 percent late
Thursday.
Profit was up from 707 mil-
lion francs in the same
period last year, and was
revitalize a firm that was hit provement in investor senti-
hard by the financial crisis
and various scandals.
The market started the spending. Growth, as mea-
week off on a strong note, sured by gross domestic
in part reflecting relief fol- product, amounted to 0.7
lowing the first round of percent in the first quarter. DANICA KIRKA
France’s presidential elec- That was less than what
tion. Results suggest France economists were expect-
may not try to break apart ing and followed a gain
from the European Union. of 2.1 percent in the final
Washington also helped quarter of 2016.
move the market. On Traders also continued to
size up company earnings.
A little more than half of
the companies in the S&P
500 index have reported
(AP Photo/Richard Drew) results for the January-
March quarter. Some 55
Wednesday, White House percent of those turned in
officials unveiled the broad earnings and revenue that
outlines of a tax plan, stok- exceeded Wall Street’s ex-
ing expectations of lower pectations, according to
taxes, plus less regulation S&P Global Market Intelli-
for businesses, policy pro- gence.
posals that have helped “Earnings have been top-
drive stocks higher since ping expectations for the
November. most part, but overall, the
On Friday, the major stock market is still nervous about there are at least some
indexes were flat or down growth and whether or
much of the day. Early not we’re going to see a
on, investors weighed the pickup in economic re-
government’s initial esti- leases,” Krosby said. “The
mate of economic growth market remains nervous
in the first three months of about geopolitical risk and
the year. The Labor De- remains nervous about tax
partment said that the reform.” Investors bid up
U.S. economy turned in its shares in companies that
weakest performance in delivered better-than-ex-
three years in the January- pected results. Google’s
March quarter, reflecting parent company, Alpha-
a slowdown in consumer bet, gained 3.7 percent
after the internet giant
reported better-than-ex-
pected quarterly results
thanks partly to a big jump
in advertising revenue.
The stock added $33.08 to
$924.52.
Amazon.com rose 0.7 per-
cent after the online retail- after U.K. Treasury chief
er posted solid first-quarter Philip Hammond suggest-
results. The stock picked up
$6.61 to $924.99.
Royal Caribbean Cruises
gained 6.1 percent after
the cruise line operator
posted solid earnings and
bookings. The stock added
$6.10 to $106.60. Rival Car-
nival also rose, picking up
79 cents, or 1.3 percent, to
$61.77. q
Costs were steady though day that “our very strong
most measures of revenue results in the first quarter
increased. The bank also highlight the power and
noted it has yet to reap the potential of our franchise.”
full benefits of a recent im- Shares in UBS AG in Zurich
were up 3.3 percent to
ment. 17.20 francs.q
CEO Sergio Ermotti said Fri-
Scotland swings
to profit in Q1
Associated Press
LONDON (AP) — The Royal
Bank of Scotland swung to
a profit in the first quarter as
the taxpayer-owned bank
cut costs and increased
lending.
RBS, bailed out by the Brit-
ish government during the
2008 financial crisis, posted
net income of 259 million
pounds ($334 million) after
a loss of 968 million pounds
a year earlier. Restructur-
ing costs more than dou-
bled to 577 million pounds,
swelled by a 235 million-
pound charge for selling
off property.
“Whilst it remains too early
to hang out the bunting,
signs of recovery at the
beleaguered bank,” said
Richard Hunter, head of
research at Wilson King In-
vestment Management.
RBS shares rose 2 percent
to 257.85 pence in early
trading.
CEO Ross McEwan had
previously announced
plans to cut costs by 2 bil-
lion pounds over the next
four years, which could
lead to job losses. McE-
wan said Friday that shift-
ing toward computer and
mobile services will deliver
an “even more customer-
focused bank, with a com-
pelling investment case.”
The results come just days
ed the government was
prepared to sell its stake in
the bank, even at a loss.
The government acquired
its 79 percent stake in RBS
for 45 billion pounds in
2008, the equivalent of
5.02 pounds a share. The
shares are now trading for
less than half that price.
“Our policy remains to re-
turn the bank to private
achieve fair value for the
shares, recognizing that
fair value could well be be-
low what the previous gov-
ernment paid for them,”
Hammond said last week.
“We have to live in the real
world and make decisions
on the future of our holding
in RBS in the best interests
of taxpayers.”q