Page 25 - ARUBA TODAY

BUSINESS Friday 19 January 2018
A25

US indexes are weighed down by industrials, energy stocks

By ALEX VEIGA publicans and Democrats
AP Business Writer scrambled to avert a pos-
Losses among Boeing, sible federal government
General Electric and other shutdown before a mid-
big industrial companies night Friday deadline.
weighed on U.S. stocks Republicans were trying
Thursday, pulling the mar- to pass a funding bill that
ket below the record highs would prevent the shut-
it set the day before. down of federal agencies,
Energy stocks contributed but Democrats threatened
to the modest decline fol- to vote against the bill un-
lowing a slide in crude oil less the White House and
prices. GOP lawmakers include
Technology companies protections for younger im-
accounted for the biggest migrants who were brought
gains. Bond yields climbed to the U.S. illegally as chil-
to their highest level since dren.
March as demand for A shutdown could have a
bonds waned. negative impact on con-
Investors kept an eye on the sumer spending and finan-
latest company earnings cial conditions, though it’s
news while also monitoring unlikely that it would cause
developments in Washing- lasting or broad damage to
ton ahead of a possible Trader Craig Spector works on the floor of the New York Stock Exchange. Losses among Boeing, the economy, Credit Suisse
federal government shut- General Electric and other big industrial companies weighed on U.S. stocks Thursday. economists concluded in a
down this weekend. (AP Photo/Richard Drew) note published Thursday.
The market’s dip from its lat- The Standard & Poor’s 500 The Russell 2000 index of cember to a seasonally ad- As for the Wall Street im-
est highs represents “just a index fell 4.53 points, or 0.2 smaller-company stocks justed annual rate of 1.19 pact, a shutdown could
little setback,” said Craig percent, to 2,798.03. The gave up 9.93 points, or 0.6 million units. The drop was sap some of the momen-
Callahan, chief investment Dow Jones industrial aver- percent, to 1,576.73. a reversal from robust gains tum that helped drive the
officer at ICON Advisers. age lost 97.84 points, or 0.4 The Commerce Depart- for October and Novem- stock market to new highs
“We’re still bullish and ex- percent, to 26,017.81. ment said Thursday that ber. this week, said J.J. Kinahan,
pect the market to move The Nasdaq slid 2.23 points, grounbreakings on new Traders also kept tabs on chief market strategist at TD
higher over the next year.” or 0.03 percent, to 7,296.05. U.S. homes declined in De- Washington, where Re- Ameritrade.q
Morgan Stanley’s profits fall 59 percent

By KEN SWEET million, or 29 cents a share, assets, which are effectively
AP Business Writer down from $1.67 billion, tax credits the bank stock-
NEW YORK (AP) — Morgan or 81 cents a share, from a piled after the financial crisis.
Stanley’s earnings fell 59 per- year earlier. Excluding the tax The lower corporate tax rates
cent in the fourth quarter, the charges, the earnings rose under the new law lowered
company said Thursday, as to 84 cents a share, beating the value of those assets.
the investment bank had to analysts’ forecasts, from 74 The bank now expects its tax
book $990 million in charges cents. rate to be between 22 per-
related to the new tax law. Like other banks, Morgan cent and 25 percent, down
Morgan Stanley earned $686 Stanley had to write down from its current tax rate of 31
the value of its deferred tax percent. Morgan Stanley had
a strong 2017 and it contin-
ued into the fourth quarter.
The firm had net revenue in
the quarter of $9.5 billion,
up from $9.02 billion in the
same period a year ago.
The institutional securities
division, which includes the
firm’s trading desks and its
investment bank, saw a mod-
est fall in profits and revenue
in the quarter, largely due to
a small decline in investment
banking advisory revenue.
Trading was down in line with
Morgan Stanley’s competi-
tors, with bond trading rev-
enue falling by roughly half.
Stock trading, where Mor-
gan Stanley is strongest, had
steady revenue from a year
ago. q