Page 25 - ARUBA TODAY

BUSINESS Tuesday 19 december 2017
A25

Deals and hopes for corporate tax cuts drive stocks higher

that pay relatively higher average advanced 140.46
tax rates, including smaller, points, or 0.6 percent, to
U.S.-focused companies, 24,792.20. The Nasdaq
banks and retailers. composite traded above
“A lot of those companies 7,000 for the first time but
don’t have, or haven’t tak- later slipped below that
en advantage of, all of the milestone. It rose 58.18
nooks and crannies of the points, or 0.8 percent, to
tax code,” said Jason Pride, 6,994.76. The Russell 2000
director of investment index of smaller-company
strategy at Glenmede. He stocks climbed 18.50 points,
thinks the average com- or 1.2 percent, to 1,548.92.
pany will get a roughly 4 Campbell Soup will buy
percent boost to its profits, pretzel maker Snyder’s-
and a tax break on corpo- Lance for $50 a share, or
rate investment could push $4.87 billion. The deal will
companies to spend more give Campbell a group of
money on equipment. brands including Snyder’s
Deal news also helped put of Hanover, Kettle Brand
investors in a buying mood. and Pop Secret. Snyder’s
Two major food compa- climbed $3.25, or 6.9 per-
nies agreed to buy smaller cent, to $50.04. It has surged
Traders work at the New York Stock Exchange in New York. U.S. stocks climbed again Monday snack makers: Campbell 27 percent since Tuesday’s
and set more records as investors grew more certain Republicans will pass their tax plan this week. Soup plans to purchase close on reports Campbell
(AP Photo/Mark Lennihan) pretzel maker Snyder’s- Soup was preparing a bid.
By MARLEY JAY their tax plan this week. peared to shore up enough Lance for $4.87 billion and Campbell gained 7 cents
AP Markets Writer Technology companies support to pass the bill, and Hershey will buy Amplify to $49.66.
NEW YORK (AP) — U.S. climbed, as did banks and Congressional Republicans Snack Brands for $1.2 billion. Chocolate and candy
stocks climbed again Mon- retailers, which are likely to are scheduled to start vot- The Standard & Poor’s 500 maker Hershey agreed to
day and set more records see lower taxes. ing on the legislation Tues- index gained 14.35 points, buy Amplify Snack Brands
as investors grew more cer- Stocks have made hefty day. The biggest gains or 0.5 percent, to 2,690.16. for $12 a share, or $1.2
tain Republicans will pass gains as the GOP ap- have gone to companies The Dow Jones industrial billion.q

US homebuilder sentiment hits highest mark since 1999

WASHINGTON (AP) — U.S. Readings above 50 indi- builders’ view of single- tober at the fastest pace in new construction due to an
homebuilders are feeling cate more builders see family home sales rose four a decade — a 6.2 percent ongoing dearth of existing
more optimistic than they sales conditions as good points to 81, while the out- monthly increase — reflect- homes for sale. However,
have in nearly two de- rather than poor. The index look for sales over the next ing a strong economy but new construction has been
cades. has remained above 60 six months ticked up three also a worsening shortage unable to keep up with de-
The National Association of since September of 2016. points to 79. The measure of existing homes for sale. mand.Potential buyers are
Home Builders/Wells Fargo The index exceeded the of traffic by prospective New home sales last month searching for homes amid
builder sentiment index re- expectations of analysts buyers jumped eight points rose to a seasonally adjust- a healthy job market with a
leased Monday rose five surveyed by FactSet, who to 58. ed annual rate of 685,000, 4.1 percent unemployment
points to 74 this month. expected a reading of 70. The Commerce Depart- the third straight monthly rate and attractive 30-
That’s the highest reading All three components of ment reported late last gain and the best sales clip year mortgage rates that
since July of 1999, more the index rose in Decem- month that Americans since October 2007. are averaging less than 4
than 18 years ago. ber. The reading gauging bought new homes in Oc- Many buyers are turning to percent.q