Page 25 - ARUBA TODAY

BUSINESS Saturday 28 december 2019
A25

Markets in 2019: record stocks, lower rates, so-so IPOs

By ALEX VEIGA rate policy this year, cutting
NEW YORK (AP) — On Jan- its benchmark rate three
uary 3, the S&P 500 sank times after more than two
2.5% when Apple warned years of increases. Chair-
of sagging demand for the man Jerome Powell por-
iPhone, an inauspicious trayed those cuts as "insur-
start to 2019 following a ance" against a slowdown
14% drubbing in last year's resulting from weak global
fourth quarter. growth. Prior to late 2015,
On January 4, Federal Re- the Fed had been keeping
serve Chairman Jay Powell rates at a record low near
said the central bank would zero to stimulate the econ-
be "patient" with its interest omy. In December, the
rate policy following four Fed said it was prepared
increases in 2018. The S&P to keep rates low at least
500 soared 3.4% and by the through next year.
end of the month was up ___
nearly 8%. "HOME" RUN
January's swing helped set A strong labor market and
the tone for a year in which a steady decline in mort-
the market responded to gage rates stoked demand
every downturn with a more among would-be home-
sustained upswing. Along owners this year, driving U.S.
the way, stocks kept set- In this Nov. 14, 2019, file photo a pair of specialists work on the floor of the New York Stock Ex- home sales higher. A persis-
ting records — 32 of them change. tently limited supply of pre-
for the S&P 500 by Dec. 20, Associated Press viously occupied homes for
and 19 for the Dow Jones sale at a time when millen-
Industrial Average. more stimulus to bolster the MIXED REVIEWS Corporate profits hit the nials are increasingly seek-
By its final policy meeting global economy against For initial public offerings, brakes in 2019, a year after ing to become homeown-
in December, the Fed had the damage created by 2019 was like a year in Hol- a big tax cut helped juice ers also helped to stoke
completely reversed course President Donald Trump's lywood: There were some results. On top of no longer demand, even though
and cut rates three times in trade war. Not only did phenomenal successes getting the benefit of the affordability remained a
what Powell called a pre- U.S. stocks rise, so did high- and some notable flops. first year of lower tax rates, challenge in many markets.
emptive move against any quality bonds, low-quality Ride-hailing giant Uber and a slowing global economy The housing trends favored
impact a sluggish global bonds and foreign stocks. rival Lyft were huge disap- weighed on company U.S. homebuilders, whose
economy and the U.S.-Chi- Among the few losers: junk pointments. Video-confer- revenues. If S&P 500 com- shares surged well above
na trade war might have bonds with the very lowest ence company Zoom and panies end up reporting the broader market.
on U.S. economic growth. credit ratings, but a better workplace messaging com- four straight quarters of de- ___
The stock market, and most performance from bonds pany Slack each soared on clines for 2019, as analysts CLICKS AGAIN OUTSHINE
Fed observers not named with bad but not the worst their first day of trading, but expect, it would be the BRICKS
Trump, approved of the ratings meant high-yield in- while Zoom kept zooming first time that's happened Retailers had a mixed year
Fed's actions. dexes still generally made Slack, well, slacked off after since 2015-16. Still, analysts as they continued beefing
Investors' uncertainty over gains. that. For non-tech compa- tend to set low expecta- up their online sales strate-
trade policy eased by De- ___ nies, Beyond Meat and its tions that most companies gies amid declining foot
cember as Washington and KEEPS ON TICKING plant-based burgers hit the are able to beat, so inves- traffic. Department stores,
Beijing reached a modest, The U.S. economy with- spot while SmileDirectClub tors aren't panicked by the and Macy's in particular,
interim agreement that stood a number of chal- produced mostly frowns. slower profit growth. fell sharply. Specialty retail-
averted a new round of lenges in 2019. President WeWork's botched IPO sig- ___ ers did much better, with
tariffs on $160 billion worth Trump's trade war with naled a change in IPO in- CAN NEGATIVE BE A POSI- electronics retailer Best
of Chinese imports and re- China intensified as both vestors' mindset. TIVE? Buy, car dealership chain
duced existing import taxes sides increased tariffs. Fears ___ Would you pay someone CarMax and home im-
on about $112 billion in oth- of recession spiked in late TECH IS CHIPPER to lend money to them? provement retailers Home
er Chinese goods. summer and fall as exports Technology stocks soared The practice has become Depot and Lowe's among
While the pact left unre- fell and businesses, facing in 2019 and far outpaced more common around the those making sharp gains.
solved some of the thorni- higher costs on imported every other sector in the world — $13 trillion in bonds As the year wound down,
est issues between the two goods, cut back spend- S&P 500. Chipmakers, in- globally had negative retailers were hoping that
countries, investors ap- ing on new machinery cluding Advanced Mi- yields as of November, ac- low unemployment, higher
peared happy to have a and equipment. Overseas cro Devices and Lam Re- cording to Deutsche Bank. wages and the record-
de-escalation in trade ten- economies also stumbled, search, made some of the Much of that total is from setting stock market would
sions now and push off lin- with Germany nearly falling biggest gains, despite a Japan, France and Germa- translate into a robust holi-
gering concerns until 2020. into recession and growth trade war that threatened ny, countries that account day shopping season.
Through it all, the U.S. econ- in the U.K. slowing amid business in China. Apple for nearly a quarter of all ___
omy and consumers' appe- Brexit uncertainty. Still, the and Microsoft had their the world's bonds. It's the PROTEIN PUSH
tite for spending remained U.S. consumer kept spend- biggest share gains in a result of shock-therapy by Plant-based meat has
resilient, supporting the ing as the unemployment decade and each topped the European Central Bank gone mainstream. Beyond
market's record-shattering, rate hit a 50-year low and $1 trillion in market value. and others to try to jolt their Meat, which makes burg-
year-end rally. wage growth picked up for Energy stocks gained the economies and inflation ers and sausages from
ALMOST EVERYTHING'S A workers outside manage- least amid concerns that higher. pea protein, had one of
WINNER rial ranks. Most economists oil supply is outpacing de- ___ the most successful IPOs of
Investments around the expect modest growth in mand. THE FED'S U-TURN the year. Burger King's soy-
world were winners in 2019 2020. __ The Federal Reserve based Impossible Whopper
as central banks unleashed ___ EARNINGS EASE UP changed course on interest was a big hit. q