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BUSINESS Friday 8 November 2019
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Trade hopes push US stock indexes toward more record highs

By DAMIAN J. TROISE The U.S.-China trade war forecasts. Several other
Associated Press has been a top concern for winners included drug dis-
NEW YORK (AP) — Stocks investors since early 2018. tributor Cardinal Health,
rose broadly in afternoon Wall Street has been wor- which rose 5.1% after re-
trading on Wall Street Thurs- ried that tariffs will crimp porting surprisingly good re-
day, pushing major indexes corporate and economic sults. Ralph Lauren surged
toward another set of re- growth. 13.2% following its solid re-
cords, after China said it BROKEN RECORDS: The S&P sults. Several companies
agreed with the U.S. on a 500 has been on a steady that focus on travel were
gradual pullback on tariffs rally for the past month, punished by investors af-
if talks progress. following the announce- ter reporting weak results.
The S&P 500 is heading for ment of an initial U.S.-China TripAdvisor plunged 19.9%
its second record-setting trade deal in early Octo- and Expedia plummeted
day this week. The Dow ber. Last week it notched 25.3%.
Jones Industrial Average three record-setting days HIGH TIDE: SeaWorld Enter-
and the Nasdaq are on John Panin, center, works with fellow traders on the floor of the as investors grew more en- tainment surged 14.3% af-
pace for their third day of New York Stock Exchange, Thursday, Nov. 7, 2019. couraged about prospects ter the theme park opera-
record highs. Associated Press for economic growth be- tor named an executive
Technology companies Treasury rose to 1.94% from rose 0.8%. The Russell 2000 cause of solid economic from the timeshare and
led the market. Qualcomm 1.81% late Wednesday. index of small company and earnings reports. resort industries as its new
rose sharply after reporting The big move signals con- stocks rose 0.7%. The rally also lifted the Dow CEO. Sergio Rivera will lead
solid earnings. The sector fidence from investors as Markets in Europe and Asia and Nasdaq over the last the company months after
is prone to swings in trade they shift away from safe- also rose. two weeks to multiple re- the previous CEO abruptly
relations as many of those play holdings and take on TRADING ON TRADE: The cords. resigned.
companies rely on China more risk. encouraging development EARNINGS SCORECARD: FIRE COSTS: Pacific Gas &
for sales and supply chains. Real estate companies and in U.S.-China negotiations is It's a busy day for corpo- Electric slid 8.6% after re-
Banks also rose after bond utilities, also considered saf- giving the market direction rate earnings as the latest porting substantial losses for
yields jumped. Higher yields er investments, lagged the after a day of listless trad- round of results nears the the third quarter, driven by
allow banks to charge market. ing as investors absorbed finish line. More than 85% of catastrophic wildfires that
more lucrative interest KEEPING SCORE: The S&P the latest round of corpo- companies within the S&P have been blamed on the
rates on mortgages and 500 index rose 0.6% as of rate earnings. Both nations 500 have reported so far. utility's outdated transmis-
other loans. Citigroup rose 12:05 p.m. Eastern time. have agreed to a truce, Chipmaker Qualcomm, sion lines. The company an-
1.7% and JPMorgan Chase The Dow Jones Industrial but the terms are still vague which reported results late ticipates those costs could
rose 1.3%. Average rose 255 points, or and they have yet to sign Wednesday, rose 7.9% af- escalate to as much as
The yield on the 10-year 0.9%, to 27,751. The Nasdaq a deal. ter beating analyst's profit $6.3 billion.q

Eurozone forecast for long period of weak economic growth

By PAN PYLAS economic growth has con- sions between the United
Associated Press tinued, job creation has States and China could
LONDON (AP) — The Eu- been robust, and domestic boost confidence.
ropean Union's executive demand strong," said Val- Also, clarity over Britain's
branch has cut its growth dis Dombrovskis, a leading departure from the Euro-
forecasts for the 19-country commissioner in the execu- pean Union could alter the
eurozone for this year and tive branch. outlook. Much hinges on
next and warned that con- "However, we could be the U.K. general election
ditions could worsen in the facing troubled waters on Dec. 12.q
face of an array of uncer- ahead: a period of high un-
tainties. certainty related to trade
The European Commis- conflicts, rising geopolitical
sion said Thursday that the tensions, persistent weak-
single currency bloc is ex- Business people stand in front of an office building they just left ness in the manufacturing
pected to grow 1.1% this in Frankfurt, Germany, Monday, Nov. 4, 2019. sector and Brexit."
year, down 0.1 percent- Associated Press The next couple of months
age point from the previ- The slowdown in growth economy has shown resil- could prove crucial for the
ous forecast. has already prompted the ience amid a less support- global economy.
Next year, growth is ex- European Central Bank to ive external environment: Any easing in trade ten-
pected to be 0.2 percent- reactivate its bond-buying
age point lower than pre- stimulus program and to
viously estimated 1.2%. cut interest rates again,
Growth in 2021 is also fore- the hope being that looser
cast at 1.2%. monetary policy will help
The commission said the shore up growth and get
manufacturing sector was inflation back to its goal of
baring the brunt of the just below 2%.
slowdown and that as a re- The commission doubts
sult, the European econo- that inflation will get back
my "looks to be heading to- to that level, rising only
wards a protracted period modestly to 1.3% next year
of more subdued growth from 1.2% in 2019.
and muted inflation." "So far, the European