Page 25 - ARUBA TODAY
P. 25
BUSINESS A25
Friday 23 March 2018
Stocks dive on trade war fears after China sanctions
Trader Mark Puetzer works in a booth on the floor of the New York Stock Exchange. Stocks plunged With trade tensions in focus tinued Thursday, as U.S.
Thursday after the Trump administration slapped sanctions on goods and investment from China. over the last month, they've Trade Representative Rob-
had trouble finding any. ert Lighthizer said the tariffs
(AP Photo/Richard Drew) The S&P 500 index skidded won’t apply to the Euro-
68.24 points, or 2.5 per- pean Union, Canada, Mex-
By MARLEY JAY American technology, and the Wells Fargo Investment cent, to 2,643.69. The Dow ico, Argentina, Brazil and
NEW YORK (AP) — Stocks the Chinese government Institute, said the risk of a Jones industrial average Australia.
plunged Thursday after said it will defend itself. In- damaging trade war is still sank 724.42 points, or 2.9 Donisanu, of Wells Fargo,
the Trump administra- vestors are worried that low because the Trump percent, to 23,957.89. The said the Trump administra-
tion slapped sanctions on trade tensions would hurt administration is targeting Nasdaq composite gave tion isn’t hostile to trade
goods and investment from U.S. companies and harm specific goods that aren't up 178.61 points, or 2.4 per- necessarily, but wants to
China. The Dow Jones in- the world economy. central to China's econo- cent, to 7,166.68. The Rus- get other countries to re-
dustrial average dropped On Thursday they fled my. That could change if it sell 2000 index of smaller- vise the terms of America’s
more than 700 points as stocks and bought bonds, puts tariffs on products like company stocks lost 35.43 trade deals.
investors feared that trade which sent bond prices electronics or appliances points, or 2.2 percent, to “This is probably intend-
tensions between the higher and yields lower. imported from China. 1,543.87. ed to get China to get
world's largest economies With interest rates falling, "If the Trump administration Construction equipment more serious in discussions
would escalate. banks took some of the really wanted to hurt China maker Caterpillar fell $8.90, around violations of intel-
The planned sanctions in- worst losses. Technology and start a trade war, then or 5.7 percent, to $146.90, lectual property rights and
clude tariffs on $48 billion and industrial companies, they would go after those for its worst loss since mid- addressing those issues,”
worth of Chinese imports as basic materials makers and larger sectors," he said. Still, 2016. Aerospace company he said.
well as restrictions on Chi- health care companies Donisanu said that after Boeing slid $17.49, or 5.2 Bond prices climbed, send-
nese investments. Trump also fell sharply. last year's rally, investors are percent, to $319.61. ing yields lower. The yield
said he's taking those steps Peter Donisanu, an invest- looking for new reasons to Investors also sold some of on the 10-year Treasury
in response to theft of ment strategy analyst for feel optimistic about stocks. the market's biggest recent note slipped to 2.82 per-
winners. Among technol- cent from 2.88 percent.
ogy companies, Microsoft Falling bond yields are bad
fell $2.69, or 2.9 percent, for banks because they
to $89.79 and Alphabet, force interest rates on loans
Google's parent company, lower. Bank of America
fell $40.85, or 3.7 percent, lost $1.32, or 4.1 percent,
to $1,053.15. Online retailer to $30.55 and JPMorgan
Amazon slid $36.94, or 2.3 Chase gave up $4.79, or
percent, to $1,544.92. 4.2 percent, to $109.95.
Earlier this month the Trump Utility companies and real
administration ordered estate investment trusts
tariffs on imported steel moved higher. When bond
and aluminum, and stocks yields decline, investors of-
dropped as investors wor- ten bid up those stocks and
ried about the possibility of others that pay big divi-
tougher restrictions on inter- dends. The decline in rates
national trade and smaller comes a day after the Fed-
profits for corporations. eral Reserve raised inter-
Their fears eased when the est rates and said the U.S.
administration said some economy and the job mar-
countries will be exempt ket continued to improve
from the tariffs. That con- over the last two months. q
Citigroup puts restrictions on gun sales
By KEN SWEET and high-capacity maga- company, be it traditional shooting. Delta and United like Dick's Sporting Goods
AP Business Writer zines. Businesses who do banking services or activi- airlines have ended their announced they would no
NEW YORK (AP) — Citigroup not comply with these new ties like raising capital. discount programs they of- longer carry assault weap-
put new restrictions on fire- restrictions will have their Citi will also be reviewing fered with the National Rifle ons and high-capacity
arm sales by its business Citi banking relationship any banking relationships it Association, and retailers magazines.q
customers, the company eventually wound down. might have with gun manu-
said Thursday, making it "We don't have the per- facturers, the bank said in a
the first bank to announce fect solution but we have statement Thursday.
changes to its policies in come to the conclusion Several companies have
the wake of the school that we must do our part made changes to their
shooting in Florida. to keep guns out of the policies in recent weeks fol-
Citigroup will require its cli- hands of those who wish lowing the Parkland school
ents and business custom- to do harm," said Ed Skyler,
ers not to sell a firearm to executive vice president of Divi Village
anyone who hasn't passed global public affairs at Citi, studio Wk 11 Room #8204
a background check or in a blog post. 17 weeks remain 7 accelerated
anyone under the age of The restrictions apply to Citi $5500
21. They also will not allow clients with credit cards Call:630-1307
its customers to sell what backed by Citigroup or johnnypaesch@gmail.com
are known as bump stocks bank with the New York
______________________________________
