Page 25 - ARUBA TODAY

BUSINESS Thursday 21 November 2019
A25

Stocks slide on Wall Street over new trade war concerns

By ALEX VEIGA Bank of America dropped slid 0.8%. The Russell 2000
Associated Press 1% as financial stocks fell index of smaller company
Stocks moved broadly broadly along with bond stocks also dropped 0.8%.
lower in afternoon trading yields. The yield on the 10- Major stock indexes in Eu-
on Wall Street Wednesday year Treasury slid to 1.74% rope also fell.
as investors turned anxious from 1.78% late Tuesday. CRACK SHOT: Target surged
about the possibility that Falling bond yields hurt 12.7% after handily beating
the U.S. and China may not banks because they are Wall Street's third-quarter
reach a trade deal before a benchmark for the inter- earnings estimates. The re-
next year. est rates lenders charge tailer also raised its profit
A published report sug- on mortgages and other forecast for the year.
gested a "phase one" trade loans. Energy companies PROFIT REPAIR: Lowe's rose
pact may not be complet- held up better than the rest 3.6% after raising its profit
ed this year as negotiators of the market as oil prices forecast for the year fol-
continue to wrestle over jumped 3.3%. ConocoPhil- lowing a solid third quarter.
differences. Beijing is press- Traders Andrew Silverman, left, and Robert Charmak work on lips rose 3.2%. The home improvement re-
ing Washington to agree to the floor of the New York Stock Exchange, Wednesday, Nov. Utilities also rose as traders tailer has been working to
broader tariffs rollbacks on 20, 2019. moved to shift assets into improve profit and sales to
Chinese goods. Associated Press less-risky and higher-divi- better compete with rival
Another potential hurdle: pared to raise tariffs on Chi- trade talks were making dend paying stocks. Tar- Home Depot. Home Depot,
The Senate's passage of a nese exports if the nations progress helped pave the get and Lowe's both made which cut its profit forecast
resolution in support of hu- can't reach an agreement way for gains in the market sharp gains after reporting after reporting disappoint-
man rights in Hong Kong on trade. Investors have in recent weeks, including encouraging earnings and ing earnings on Tuesday,
following months of anti- been hoping the world's a string of all-time highs for forecasts. fell 2.2%.
government protests. Chi- two biggest economies the major stock indexes. KEEPING SCORE: The S&P THAT'S NOT VERY HIP: Urban
na condemned the move can make a deal before Technology and communi- 500 index was down 0.7% Outfitters plunged 14.9%
and threatened "strong new and more damag- cation services companies as of 2:03 p.m. Eastern time. after the clothing and ac-
countermeasures." ing tariffs take effect next were among the biggest The Dow Jones Industrial cessories retailer fell short
President Donald Trump month. Growing optimism losers Wednesday. HP fell Average fell 195 points, or of Wall Street's third-quarter
said Tuesday he was pre- among investors that the 2.1% and AT&T slid 3.6%. 0.7%, to 27,738. The Nasdaq profit and sales forecasts.q

Fed minutes: Officials felt 3 cuts this year could be enough

By MARTIN CRUTSINGER erate growth, a continued benchmark rate now in a
Associated Press strong job market and infla- range of 1.5% to 1.75%. The
WASHINGTON (AP) — tion rising toward the Fed's central bank's key rate influ-
Most Federal Reserve of- 2% target level. A "couple" ences many consumer and
ficials believed last month of Fed officials suggested business loans. At a news
that the three rate cuts that this view should be conference after the Fed's
they have made this year reinforced by additional Oct. 30 meeting, Chairman
would be enough unless comments after the meet- Jerome Powell had said
the economy weakened ing that further cuts were that "monetary policy is in
significantly. The minutes "unlikely in the near term" a good place." But Powell
of the October Fed meet- unless the economy slowed added that if "if develop-
ing, released Wednesday, significantly. The consensus ments emerge that cause This July 31, 2019 file photo shows the Federal Reserve Building in
reveal that "most partici- among economists is that a material reassessment of Washington. The Federal Reserve says corporate debt remains
pants" thought that this the Fed will now pause our outlook, we would re- at historically high levels but overall the U.S. financial system is
resilient, a view in sharp contrast to the problems that led to the
year's rate cuts would be after having cut rates spond accordingly. Policy is 2008 financial crisis.
sufficient to support mod- three times in 2019, with its not on a pre-set course."q Associated Press