Page 25 - ARUBA TODAY

BUSINESS Wednesday 20 september
A25

Slight gains in US stocks lift Dow, S&P, Nasdaq to new highs

By ALEX VEIGA Such a move would al-
AP Business Writer low the Fed to effectively
Wall Street capped a day raise interest rates without
of mostly listless trading touching its key short-term
Tuesday with a slight gain, rate, known as the federal
good enough to lift the funds rate, said Phil Blanca-
major U.S. stock indexes to, CEO of Ladenburg Thal-
to another set of all-time mann Asset Management.
highs. “That’s the most important
Banks, insurers and other fi- aspect here,” Blancato
nancial companies led the said. “That does have an
gainers. Technology com- impact on the bond mar-
panies also helped lift the ket, and you see the bond
market. Health care stocks market going slightly high-
lagged the most, pulling er here over the last two
down insurers, hospital op- days.”Bond prices fell Tues-
erators and other compa- day, sending the yield on
nies as a Republican effort the 10-year Treasury note
to repeal President Barack up to 2.25 percent from
Obama’s health care law 2.23 percent late Monday.
appeared to gain momen- Speculation that the Fed
tum. Oil prices fell. will announce plans to
Trading was subdued Trader Patrick Casey, center, works on the floor of the New York Stock Exchange. unwind its bond portfolio
overall as investors looked (AP Photo/Richard Drew) helped lift shares in banks
ahead to Wednesday, and other financial com-
when the Federal Reserve index rose 2.78 points, or since last Wednesday. confidence showed CEO panies. Such a move by
was expected to deliver 0.1 percent, to 2,506.65. The Russell 2000 index of optimism reached its high- the Fed would likely push
an update on the central The index, regarded as the smaller-company stocks est level since early 2014. long-term interest rates up.
bank’s view of the econ- broadest measure of the declined 0.68 points, or 0.1 Mostly, though, investors Banks benefit from higher
omy and the timing of its stock market, has hit a re- percent, to 1,440.40. were focused on what the rates, which can translate
plans to raise interest rates cord high three days in a The major stock indexes Fed will have to say on into higher profits from
and shrink its bond hold- row.The Dow Jones indus- wavered in early trading, Wednesday.Forecasters lending money. U.S. Ban-
ings. trial average gained 39.45 but recovered to hold their expect the Fed to leave corp added 78 cents, or
“People are still, as they points, or 0.2 percent, to small gains by afternoon. interest rates unchanged 1.5 percent, to $53.16. Wells
usually are the day before 22,370.80. The average is Investors sized up new eco- and stick to plans to raise Fargo & Co. rose 65 cents,
a Fed announcement, on a six-day streak of new nomic data that showed rates in December. But or 1.2 percent, to $53.36.
kind of in a wait-and-see highs.The Nasdaq com- the pace of U.S. home traders will be listening for Progressive gained 2.9 per-
mode,” said Lindsey Bell, posite added 6.68 points, construction slowed in Au- word on whether the cen- cent after the insurer re-
investment strategist at or 0.1 percent, to 6,461.32. gust due to a steep drop in tral bank is ready to begin ported lower-than-expect-
CFRA Research. The tech-heavy index also apartment construction. A shrinking its multitrillion-dol- ed losses from Hurricane
The Standard & Poor’s 500 notched a new high, its first separate report on business lar stockpile of bonds. Harvey. q
Best Buy shares down as it offers muted profit goals

NEW YORK (AP) — Shares $40.24 billion, according to ployees to shoppers’ hous- like smart home devices, gy, which is a much bigger
of Best Buy fell Tuesday af- FactSet. es for free “smart home” mobile phones, and ap- idea and one that is rich
ter the nation’s largest con- Best Buy is trying to make recommendations.So far, pliances were especially with opportunities,” said
sumer electronics chain itself indispensable to shop- Best Buy’s strategies are strong. Online sales soared Hubert Joly, CEO of Best
outlined long-term profit pers as people shop more resonating with shoppers. about 31 percent.“Building Buy, in a statement.
goals that displeased in- online. It’s been beefing Last month, it reported that on what we have accom-
vestors. up the customer service in revenue at U.S. stores open plished, we are excited by
Best Buy also reiterated its appliance departments. at least a year rose 5.4 the opportunities we have
that it wasn’t slashing costs This fall, it’s showcasing ex- percent during the com- in this next chapter to grow
as much as it did in past periences of voice-activat- pany’s fiscal second quar- the company by helping
years as it invests more in ed devices from the likes of ter, while Wall Street had customers pursue their pas-
online services to compete Amazon’s Alexa-controlled estimated a 2.2 percent sions and enrich their lives
with online leader Amazon. Echo and Google Assistant increase. Sales of products with the help of technolo-
com.The Richfield, Minne- at 700 stores. Best Buy is also
sota, company said Tues- rolling out a free service this
day that for fiscal 2021 it month where salespeople
expects earnings per share will sit with customers at
of $4.75 to $5.00. That rep- their own homes to help
resents an 8 to 9 percent make recommendations
compound annual growth on TVs, streaming services
rate from fiscal 2017. and more.
Best Buy Co. said that it also The service, which was test-
expects enterprise revenue ed in five markets, will be
of $43 billion for 2021 com- expanded to more cities
pared with $39.4 billion in around the country. Ama-
fiscal 2017. zon, though, has report-
Analysts expected $5.30 edly also been trying out a
per share on revenue of program that sends its em-