Page 24 - ARUBA TODAY

Thursday 14 sepTember 2017 BUSINESS
A24

US producer prices rose in August as energy costs shot up

By JOSH BOAK sumer, rose 0.2 percent last August, including a sharp at Pantheon Macroeco- while core prices have risen
AP Economics Writer month. 20.6 percent decline in nomics, said he is “braced” 2.0 percent.
WASHINGTON (AP) — High- It was the largest monthly wheat prices. for a temporary “spike” in Despite the monthly in-
er energy costs led to pric- increase since a 0.5 per- The survey was taken be- producer prices because crease, relatively low infla-
es at the wholesale level ris- cent gain in April. Inflation- fore Harvey and Irma struck of the hurricanes. tion has been a constant
ing in August at the fastest ary pressures have largely the southern part of the Core inflation, which ex- throughout the recovery
pace in four months. been subdued in recent United States, events that cludes volatile food and from the Great Recession
The Labor Department said months. Much of the in- will likely cause prices to energy costs, rose 0.1 per- will continue. For the past
Wednesday that its pro- crease in August came further rise in the coming cent last month. five years, inflation has
ducer price index, which from a 3.3 percent surge in months as the rebuilding Over the past 12 months, stayed below the Federal
measures inflation pressures energy costs. process begins. Ian Shep- wholesale prices are up Reserve’s target of annual
before they reach the con- Food expenses slipped in herdson, chief economist a moderate 2.4 percent price gains of 2 percent.q

Retailers and energy companies lead US stocks a bit higher

Fed Chair Janet Yellen’s days, some 30,000 more
four-year term will end in than it hired a year ago. Its
February and it’s not clear if stock climbed $1.62, or 2.8
President Donald Trump will percent, to $59.51. Best Buy
re-appoint her or replace rose $1.81, or 3.2 percent,
her. to $58.60 and Gap gained
“There are factions of the 61 cents, or 2.2 percent,
Fed, as well as potential to $28.22. Video game
Fed chair candidates, that seller GameStop added
are less focused on market 49 cents, or 2.5 percent, to
reactions and will be more $20.02 and Amazon.com
focused on the need to rose $17.02, or 1.7 percent,
raise rates from their cur- to $999.60.
rent levels to offset a future Department store chain
recession,” said Eric Freed- Nordstrom climbed after
man, chief investment of- CNBC reported that the
ficer for U.S. Bank Wealth Nordstrom family is close
Management. to a deal to take the com-
Freedman said Yellen has pany private. The stock
made a priority of informing has risen over the last three
Wall Street about the Fed’s months following talk that
plans and taking investor company executives and
reactions into account. A other descendants of co-
Trader Mark Muller, left, and specialist Dilip Patel work on the floor of the New York Stock Ex- different Fed chair might founder John Nordstrom
change. Insurers and travel companies are rising sharply in early trading on Wall Street after Hur- not do that, which could might buy the 70 percent
ricane Irma didn’t turn out to be as destructive as many had feared. lead to a bumpier ride for of the company they don’t
(AP Photo/Richard Drew) stocks. The Standard & already own. The stock
By MARLEY JAY season, about 30,000 more gains. Retailers and energy Poor’s 500 index added gained $2.69 cents, or 6
AP Markets Writer than it did a year ago. En- and telecommunications 1.89 points, or 0.1 percent, percent, to $47.74.
NEW YORK (AP) — U.S. stock ergy companies rose after companies have all strug- to 2,498.37. The Dow Jones Hard drive maker Western
indexes finished with tiny the U.S. government said gled this year and finished industrial average picked Digital slumped $3.04, or
gains Wednesday as retail- oil and gasoline stockpiles higher Wednesday. up 39.32 points, or 0.2 per- 3.4 percent, to $85.74 after
ers jumped after a strong shrank last week. One reason stocks may cent, to 22,158.18. its partner Toshiba said it will
hiring forecast from Target Those gains were almost have held steady: the Fed- The Nasdaq composite rose sell its computer memory
and energy companies canceled out as technol- eral Reserve will meet next 5.91 points, or 0.1 percent, business to a consortium
rose along with oil prices. ogy and health care com- week, and along with the to 6,460.19. The Russell 2000 led by Bain Capital Private
Companies that sell ev- panies, which have led the usual questions about in- index of smaller-company Equity. Western Digital
erything from clothing to market higher this year, terest rates and the Fed’s stocks gained 3.43 points, wants to buy that business
electronics rose after Tar- slipped. balance sheet, investors or 0.2 percent, to 1,426.89. and has filed a lawsuit to
get said it will hire 100,000 With stocks at record highs, are wondering about the Target said it plans to hire stop Toshiba from selling it
workers for the holiday investors hunted for bar- central bank’s leadership. 100,000 workers for the holi- to anyone else. q

US budget deficit up slightly to $107.7 billion in August

By MARTIN CRUTSINGER day that the August deficit year’s deficit to $693 billion, time, CBO has indicated budget year begins Oct. 1,
AP Economics Writer totaled $107.7 billion, up which would be 18.3 per- that it might have been and Washington had been
WASHINGTON (AP) — The 0.5 percent from a deficit cent higher than the 2016 too pessimistic in its revised facing the threat of a gov-
federal government re- of $107.1 billion in August deficit of $585.6 billion, a forecast. Some private ernment shutdown if Con-
corded a slightly larger 2016. With one month to go deterioration that reflects in economists are forecast- gress had not agreed on a
deficit in August than a in the 2017 budget year, part smaller-than-expect- ing a 2017 deficit of around new spending bill by that
year ago, while the deficit the deficit totals $673.7 bil- ed revenue gains this year. $635 billion. That forecast time. However, President
through the first 11 months lion, 8.8 percent above the The CBO’s July estimate assumes the government Donald Trump reached an
of this budget year is well deficit for the same period represented a sharp in- will run a surplus in Septem- agreement with lawmakers
above the same period a year ago. The Congres- crease of $134 billion from ber, which it has done in 53 last week for a funding bill
last year. The Treasury De- sional Budget Office in July the agency’s January fore- of the past 62 Septembers. that will finance the gov-
partment said Wednes- boosted its estimate for this cast. However, since that The government’s new ernment through Dec. 8. q