Page 25 - ARUBA TODAY

BUSINESS Thursday 14 december 2017
A25

US stocks indexes close mostly higher after Fed rate hike

stocks came even as the on the 10-year Treasury fell about two hours before the
Federal Reserve raised its to 2.34 percent from 2.40 Fed’s announcement. Re-
benchmark rate for the percent late Tuesday. publican leadership in the
third time this year. The Trading got off to a sub- House and Senate forged
move, which was widely dued start Wednesday as an agreement Wednes-
expected, came as the investors waited for the day on the GOP’s planned
central bank noted that afternoon policy update overhaul of the nation’s
the U.S. economy was on from the Fed. tax laws. The move paves
sound footing. As expected, the central the way for final votes next
“Widely expected. No big bank raised the federal week to slash taxes for
surprises. No big changes,” funds rate — what banks businesses and give many
said Tim Dreiling, regional charge each other for Americans modest tax cuts
investment director at U.S. short-term loans — by 0.25 starting next year. Smaller
Bank Wealth Manage- percentage points to a still- companies stand to ben-
ment. “It’s encouraging low range of 1.25 to 1.5 per- efit most from a reduction
that they continue to see cent. The latest short-term in corporate tax rates be-
Stock trader Aaron Ford works at the New York Stock Exchange.
The major U.S. stock indexes finished mostly higher Wednesday. economic growth continu- rate increase is the third cause they tend to pay
(AP Photo/Mark Lennihan) ing into 2018, which aligns one implemented by the higher taxes than bigger
with our thinking.” Fed this year and signals corporations.
By ALEX VEIGA a last-minute pullback in The S&P 500 index slipped the central bank’s confi- “If you look at the mix to-
AP Business Writer bank stocks left the Stan- 1.26 points, or 0.1 percent, dence that the U.S. econo- day, small caps are doing
The major U.S. stock index- dard & Poor’s 500 index to 2,662.85. The index my remains on solid footing better than large caps,”
es finished mostly higher slightly lower. closed at all-time highs on 8½ years after the end of said Sameer Samana,
Wednesday, with small Packaged food and bev- Monday and Tuesday. the Great Recession. global technical and equi-
companies notching big erage stocks, health care The Dow gained 80.63 The Fed also said it expects ty strategist for Wells Fargo
gains as lawmakers in the companies and industri- points, or 0.3 percent, to the job market and the Investment Institute. “Clear-
House and Senate reached als shares accounted for 24,585.43. The Nasdaq economy to strengthen ly, they would be the bet-
a deal on a sweeping tax much of the market’s mod- added 13.48 points, or 0.2 further next year, which is ter beneficiaries because
reform package. est gains. Banks struggled percent, to 6,875.80. The one reason it forecast that they tend to pay higher
The Dow Jones indus- as long-term bond yields Russell 2000 index of small- it would raise rates three tax rates.” Packaged food
trial average eked out its edged lower, which makes er-company stocks picked times next year. Develop- and beverage companies
third record-high close in it tougher for banks to earn up 8.33 points, or 0.6 per- ments out of Washington posted solid gains. Coca-
as many days, driven by money from lending. cent, to 1,524.45. put investors in the mood to Cola rose 61 cents, or 1.3
a jump in Caterpillar. But The decline in financial Bond prices rose. The yield buy small company shares percent, to $45.90.q
Toshiba, Western Digital make peace on sale of chip unit

Wednesday. The plan calls for Toshiba ry,” said Yasuo Naruke, a
The deal also addresses Memory Corp. to eventu- Toshiba senior executive
concerns over protection ally sell shares through an vice president and presi-
of valuable patents and initial public offering. dent and CEO of Toshiba
other intellectual property “With the concerns about Memory.
in the highly competitive litigation and arbitration re- He said the plan will ensure
field of flash memory prod- moved, we look forward to Toshiba Memory has the
ucts used in many high- renewing our collaboration resources it needs to com-
tech products. with Western Digital, and pete in the flash memory
The two companies said it accelerating TMC’s growth market, which is growing
settles all disputes in litiga- to meet growing global quickly with advances in
tion and arbitration over demand for flash memo- artificial intelligence.q
Western Digital’s objec-
tions to the planned sale
of the companies’ NAND
flash-memory SanDisk joint
venture.
The logo of Toshiba Corp., is seen at the venue for the company’s “The settlement represents
stockholders’ meeting in Chiba near Tokyo. Toshiba and
Western Digital have resolved a dispute that was preventing the best possible outcome
the embattled Japanese electronics giant from selling its flash for all parties, clearing the
memory unit to raise cash to stay afloat. The companies said way for the Bain Capital-
Wednesday, Dec. 13, 2017, that the deal allows Western Digital led consortium to com-
to participate in future investments in their joint venture. That plete its acquisition of TMC
clears the way for a consortium led by Bain Capital to buy as planned,” Yuji Sugimo-
Toshiba Memory Corp. to, managing director in
(Ren Onuma/Kyodo News via AP)
Japan of Bain Capital, said
By ELAINE KURTENBACH raise cash to stay afloat. in a statement.
AP Business Writer The agreement allows The two companies said
TOKYO (AP) — Toshiba Western Digital to partici- they will jointly invest in a
Corp. and its joint venture pate in future investments new computer chip fab-
partner Western Digital in their joint venture, clear- rication unit at their joint
have made peace over ing the way for a consor- venture in central Ja-
the embattled Japanese tium led by Bain Capital pan and in another facil-
electronics giant’s plan to to buy Toshiba Memory ity in northeastern Japan’s
sell its flash memory unit to Corp., the companies said Iwate prefecture.