Page 25 - ARUBA TODAY

BUSINESS Friday 22 december 2017
A25

Banks, energy companies lead rebound in US stocks

By ALEX VEIGA up 7.03 points, or 0.5 per-
AP Business Writer cent, to 1,547.11.
Banks and energy compa- The indexes are all on
nies led U.S. stocks higher course to finish the month
Thursday, erasing modest with solid gains.
losses from the day before. They have risen over the
Retailers and makers of past few weeks as Wash-
consumer products also ington moved closer to
posted solid gains. Small- passing its tax overhaul, but
company stocks rose they haven’t done much
more than the rest of the over the last several days
market, and technology as Congress voted on the
stocks lagged. Trading was bill.
mostly subdued as investors On a day when many trad-
looked ahead to the long ers were starting to look
holiday weekend. ahead to the long holiday
“Most of the optimism of weekend, the market re-
the tax plan was prob- ceived some encouraging
ably built into the market data on the economy.
already and I thought we The Commerce Depart-
might be in a little bit of a ment said Thursday that the
sideways mode here for a U.S. economy grew at a sol- Eric Schumacher, right, works at his trading post at the New York Stock Exchange. Banks and
while,” said Randy Freder- id 3.2 percent annual rate energy companies led U.S. stocks higher Thursday, erasing modest losses from the day before.
ick, vice president of trad- in the third quarter, slightly (AP Photo/Mark Lennihan)
ing & derivatives at Charles slower than previously esti- a big portion of the mar- “You definitely wanted to ed its quarterly revenue
Schwab. “But we’ve pretty mated. The latest GDP esti- ket’s gains. Wells Fargo rose be long on energy today,” came in ahead of financial
much gained back almost mate follows a 3.1 percent $1.47, or 2.4 percent, to Martin said. analysts’ estimates. It also
what we gave up in the last gain in GDP for the second $61.61. Several big retailers and posted a loss that was more
two days. It’s a pretty good quarter. Combined, the Oil prices veered higher, makers of consumer prod- modest than analysts were
sign to see that.” two quarters represent the reversing losses from ear- ucts also posted solid gains. expecting. Its shares gained
The Standard & Poor’s 500 best back-to-back quar- lier in the day. The rebound Toymaker Mattel added $1.51 to $13.20. Consulting
index rose 5.32 points, or 0.2 terly growth rates in three helped lift energy stocks. 59 cents, or 3.9 percent, to firm Accenture rose 1.6 per-
percent, to 2,684.57. The years. Hess climbed $2.35, or 5.3 $15.71. Luxury Jeweler Tif- cent after it reported earn-
Dow Jones industrial aver- “GDP is still strong,” said percent, to $46.34. fany & Co. gained $2.41, or ings that beat analysts’
age gained 55.64 points, Tom Martin, senior portfo- Benchmark U.S. crude 2.4 percent, to $102.46. estimates. The stock was
or 0.2 percent, to 24,782.29. lio manager at GLOBALT added 27 cents to settle at Investors bid up shares in up $2.45 to $154.20. Tech-
The Nasdaq composite Investments. “A revision of $58.36 a barrel. Brent crude, companies that beat earn- nology stocks, which are
added 4.40 points, or 0.1 one-tenth of a percentage which is used to price in- ings or outlook forecasts. on track for an annual gain
percent, to 6,965.36. The point is really not much.” ternational oils, gained 34 Finish Line jumped 12.9 per- of 38 percent, the biggest
Russell 2000 index of small- Banks and other financial cents to close at $64.90 a cent after the athletic shoe gain this year, lagged the
er-company stocks picked companies accounted for barrel in London. and apparel retailer report- most Thursday.q
US economy grew at solid 3.2 percent rate in third quarter

By MARTIN CRUTSINGER percent since 2014. regional bank is forecast- ulus kicking in next month, the slight 1.5 percent gain
AP Economics Writer President Donald Trump ing GDP growth could hit the economy’s afterburn- in GDP in 2016. For 2018,
WASHINGTON (AP) — The has pointed to these gains 3.3 percent this quarter. If ers could put this econo- economists believe growth
U.S. economy grew at a as evidence his economic GDP does top 3 percent, my’s rocketing growth rate will be even better, helped
solid 3.2 percent annual program is producing re- it would mark the first time into even higher orbit,” by the boost from the Re-
rate from July through sults. Many economists be- that has occurred since Chris Rupkey, chief finan- publican tax cuts and a
September, slightly slower lieve GDP growth this quar- three quarters in late 2004 cial analyst at MUFG Union stronger global economy.
than previously estimated ter could hit 3 percent or and early 2005. Bank in New York, said in Mark Zandi, chief econo-
but still enough to give the better. Trump has predicted the reaction to the new GDP mist at Moody’s Analytics,
country the best back- Congress this week passed tax cuts will be “rocket report. is forecasting growth of 2.9
to-back quarterly growth a major tax overhaul, giving fuel” for the economy and For all of 2017, the econ- percent for 2018, reflecting
rates in three years. Trump the biggest legisla- many economists are look- omy is expected to grow tax cuts that he predicts will
The figure was revised tive achievement of his first ing for a growth spurt next around 2.3 percent, a add 0.4 percentage point
down from last month’s year in office. Economists year. marked improvement from to GDP next year.q
estimate of 3.3 percent, believe the proposal will “The economy is rock solid
the Commerce Depart- boost growth temporarily in for now and with fiscal stim-
ment reported Thursday. 2018 and possibly 2019. But
The change reflected a bit then they forecast that the
less spending by consum- positive effects will fade,
ers, which was offset some- with slower growth going
what by increased spend- forward due to higher in-
ing by state and local gov- terest rates stemming from
ernments. the bigger government
Still, the 3.2 percent growth deficits.
followed a 3.1 percent gain But at the moment, econo-
in the second quarter, the mists are optimistic about
first consecutive quarters growth prospects. The
that growth has topped 3 Federal Reserve’s Atlanta