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BUSINESSFriday 1 April 2016
Wall Street Wrap:
Turbulent quarter ends on a quiet note
MARLEY JAY
AP Markets Writer
NEW YORK (AP) — Stocks
closed mostly lower on
Thursday, with chemicals
and agricultural compa-
nies taking the largest loss-
es. The price of gold contin-
ued its long surge. Trading
was quiet on the final day
of a stormy first quarter that
produced surprising gains.
Indexes were little changed
for most of the day, then
gradually slid from small
gains to small losses in the
afternoon. A shaky indus-
try outlook hurt agriculture,
fertilizer and farm equip-
ment companies.
Gold prices inched higher
to complete their biggest
quarterly gain in almost 30
years. The Dow Jones in-
dustrial average and Stan-
dard & Poor’s 500 index,
both of which were down
more than 10 percent last
Trader Sean Spain, wearing a tie, and specialist John Alatzas, right, work on the floor of the New
York Stock Exchange. Stocks closed mostly lower on Thursday. Trading was quiet on the final day
of a stormy first quarter that produced surprising gains.
month, finished the quarter
higher.
At the start of this year, in-
vestors seemed eager to
turn the page on 2015.
But the market plunged
as investors feared for the
health of the global econo-
my. Tobias Levkovich, chief
U.S. Equity Strategist for Citi $1,234.20 an ounce. In the
Investment Research, said
investors bought tradition-
ally defensive stocks as
the market fell, including
health care companies
and companies that make
consumer goods. Then
stocks rallied, and many of
those companies suffered
while energy companies
and others recovered.
“If you’re an institutional
investor you probably got
way too defensive in Janu-
ary, you suffered on the
way down and you’ve
suffered on the way up,”
he said. “The market may
have recovered, but a lot
of people haven’t, in their
portfolios.”
The Dow fell 31.57 points, or
0.2 percent, to 17,685.09.
The S&P 500 shed 4.21
points, or 0.2 percent, to
2,059.74 The Nasdaq com-
posite index rose 0.55 points
to 4,869.85.
Agricultural companies
slumped following disap-
pointing quarterly results
and a shaky outlook from ir-
rigation company Lindsay.
Agricultural giant Monsan-
to lost $3.35, or 3.7 percent, growth.
to $87.74. Fertilizer maker
Mosaic fell $1.12, or 4 per-
cent, to $27. Equipment
maker Deere shed $3.13, or
3.9 percent, to $76.99.
The price of gold rose
$7.30, or 0.6 percent, to
first quarter gold rose 16
percent, its largest gain
in any quarter since 1986,
going higher because of
concerns about the health
of the global economy, The Tata steel plant dominates the skyline over the roof tops of
central bank policies, and, Port Talbot, Wales, Wednesday, March 30, 2016. UK authorities
more recently, because say they will look at all viable options to keep the British steel
the U.S. dollar has started industry at the heart of its manufacturing base after Tata Steel
to weaken after years of announced it may sell its UK assets. The sale could put thou-
gains. Gold had fallen for sands of jobs at risk.
six quarters in a row.
The price of silver rose 25 (Andrew Matthews/PA via AP)
cents, or 1.7 percent, to
$15.46 an ounce. Cop- Struggling steel industry
per lost 1 cent to $2.18 a
pound. sparks fear of crisis in UK
Stocks tumbled in January
and early February on con- JILL LAWLESS Indian company to shed its
cerns that weak growth in Associated Press British steelworks appeared
several major global econ- LONDON (AP) — The Brit- to catch U.K. authorities by
omies would pull the U.S. ish government scrambled surprise. Cameron was on
economy into recession. In Thursday to save the coun- vacation in the Canary Is-
early February, the Dow av- try’s struggling steel industry lands, while Business Secre-
erage and the S&P 500 in- after Tata Steel announced tary Sajid Javid was in Aus-
dex were down more than plans to sell its U.K. plants, tralia.
10 percent from the start which employ almost Javid, who quickly flew
of the year. Stocks roared 20,000 people. back to Britain, said the
back in March as inves- Prime Minister David Cam- steel industry “is absolutely
tors were encouraged by eron held a crisis meeting vital for the country and
positive economic news in at 10 Downing St., and said we will look at all viable op-
the U.S. and central bank the government would do tions” to save it.
moves around the world “everything it can” to keep The opposition Labour Party
steelmaking in Britain. has urged the government
But, he said, “this is a dif- to nationalize the steel in-
ficult situation. There’s no dustry — as it did struggling
guarantee of success.” banks, which received bil-
“This industry is in difficulty lions in public money to
(AP Photo/Richard Drew) right across the world,” keep them afloat during
Cameron said. “There’s the 2008 financial crisis.
to stimulate economic been a collapse in prices, Labour’s economy spokes-
there’s massive overca- man, John McDonnell, said
The Dow finished the quar- pacity.” temporary nationalization
ter up 1.5 percent and the The steel industry in Brit- would be “cost-effective in
S&P 500 made a 0.8 per- ain, like many developed the long term.”
cent gain. The Nasdaq lost economies, has been hit “It isn’t just the cost of losing
2.8 percent. hard by cheap Chinese those jobs, as we’ve seen
IBM rose $3.04, or 2 percent, imports, which have de- elsewhere. It’s the cost of
to $151.45 after the com- pressed prices, and manu- devastation of whole com-
pany said it will expand facturers have asked the munities. And remember,
its business services division government and Europe- we will be paying out in
by buying Bluewolf Group, an Union to impose anti- unemployment benefits
which provides cloud con- dumping duties. and other benefits to those
sulting and implementation Tata Steel, which oper- people who lose their jobs,”
services. q ates the country’s biggest he said.
steel plant at Port Talbot in But Cameron said: “I don’t
south Wales, is losing 1 mil- believe nationalization is
lion pounds ($1.4 million) a the right answer.” He sug-
day in Britain, the U.K. gov- gested the government
ernment has said. A sale or could provide incentives
restructuring would likely to steelmakers, including
involve heavy job losses in a guarantee that British-
places like Port Talbot, a made steel would be used
battered but proud steel in major defense and infra-
town where Tata employs structure projects.
5,500 people. Critics say that may not be
Tuesday’s decision by the enough. q