Page 25 - ARUBA TODAY

BUSINESS Friday 1 September 2017
A25

US stocks jump after report of stronger consumer spending

By MARLEY JAY like bonds less appealing.
AP Markets Writer Krosby added that other
NEW YORK (AP) — U.S. news, including a manu-
stocks rose again Thursday facturing survey from Chi-
as investors were pleased na, “helped underpin the
with a report that showed notion that it is a global re-
spending by U.S. consum- covery in the economy.”
ers grew in July, along with The Standard & Poor’s 500
wages and salaries. Health index climbed 14.06 points,
care and technology com- or 0.6 percent, to 2,471.65,
panies lead the way and its highest close in three
the Nasdaq composite weeks. That allowed the
closed at a record high. index to finish August with
The Commerce Depart- a tiny gain. The Dow Jones
ment said consumer spend- industrial average added
ing grew at its fastest pace 55.67 points, or 0.3 percent,
in three months. Compa- to 21,948.10. The Nasdaq
nies that sell everything composite gained 60.35
from cosmetics to toys to points, or 1 percent, to
shoes advanced as inves- 6,428.66, above the record
tors bet Americans would This Oct. 4, 2014 photo shows the facade of the New York Stock Exchange. U.S. stocks rose again high it set in late July. The
shop more. Biotech drug Thursday as investors were pleased with a report that showed spending by U.S. consumers grew Russell 2000 index of small-
companies, drug distribu- in July, along with wages and salaries. er-company stocks picked
tors, and scientific equip- (AP Photo/Richard Drew) up 13.95 points, or 1 per-
ment companies made oil drilling and refining and climbed a day ago after traction, and inflation at cent, to 1,405.28.
some of the biggest gains pipelines out of commis- the government raised its this stage is still modest,” Drugmaker Biogen gained
in health care. Technol- sion. estimate of second-quarter said Quincy Krosby, chief $12.83, or 4.2 percent, to
ogy companies advanced The Commerce Depart- economic growth. On Fri- market strategist at Pru- a two-year high of $316.58
for the fourth day in a row ment said consumer spend- day investors will look at the dential Financial. That’s and Gilead Sciences rose
and closed at record highs. ing rose 0.3 percent in July, government’s monthly jobs been good for stocks, as to its highest price in more
Gasoline futures continued the best showing in three report for data on employ- low inflation and low inter- than a year as it moved
to spike as Tropical Storm months, as wages and ment as well as wages. est rates make stocks more up $2.51, or 3.1 percent, to
Harvey left large parts of salaries increased. Stocks “The economy is gaining appealing and securities $83.74. q

Wells Fargo says 3.5 million accounts involved in scandal

By KEN SWEET may differ from the ac- roughly 450,000 accounts extra costs and fell behind sales practices problems,
AP Business Writer count total. Wells Fargo were found in the original in their payments, and in including a congressional
NEW YORK (AP) — The said Thursday that about window. The scandal was about 20,000 cases, cars inquiry and one by the Jus-
scope of Wells Fargo’s fake half a million of the newly the biggest in Wells Fargo’s were repossessed. tice Department.
accounts scandal grew sig- discovered accounts were history. It cost then-CEO Other customers have filed Wells Fargo said Thursday
nificantly on Thursday, with missed during the original John Stumpf his job, and lawsuits against Wells Fargo that of the 3.5 million ac-
the bank now saying that review, which covered the the bank’s once-sterling saying they were victims of counts potentially opened
3.5 million accounts were years 2011 to 2015. industry reputation was unfair overdraft practices. without permission, 190,000
potentially opened without After Wells Fargo acknowl- in tatters. The company Wells Fargo is also still under of those incurred fees and
customers’ permission be- edged the fake accounts ended up paying $185 several investigations for its charges. q
tween 2009 and 2016. last year, evidence quickly million to regulators and
That’s up from 2.1 million appeared that the sales settled a class-action suit
accounts that the bank practices problems dated for $142 million. New man-
had cited in September back even further. So Wells agers have been trying to
2016, when it acknowl- Fargo hired an outside amends with customers,
edged that employees consulting firm to analyze politicians and the public.
under pressure to meet ag- 165 million retail bank ac- But it’s been tough, as new
gressive sales targets had counts opened between revelations keep coming.
opened accounts that 2009 and 2016. Wells Fargo said last month
customers might not have Wells said the firm found that roughly 570,000 cus-
even been aware existed. that, along with the 2.1 mil- tomers were signed up for
People may have had dif- lion accounts originally dis- and billed for car insurance
ferent kinds of accounts in closed, 981,000 more ac- that they didn’t need or
their names, so the num- counts were found in the necessarily know about.
ber of customers affected expanded timeline. And Many couldn’t afford the