Page 25 - ARUBA TODAY

BUSINESS Tuesday 13 June 2017
A25

Sudden technology tumble continues as stocks fall further

By MARLEY JAY
AP Markets Writer zard, Netflix and Skyworks
NEW YORK (AP) — U.S. Solutions also tumbled.
stock indexes slipped Technology stocks have
again Monday as tech- done far better than the
nology companies, which rest of the market this year
were near record highs last and were close to all-time
week, suffered a second highs before Friday’s drop.
day of sharp losses. Inves- The technology compo-
tors are changing course nent of the S&P 500 index
and selling some of the shed 2.7 percent Friday,
best-performing stocks of which erased a month’s
the year while buying com- worth of gains.General
panies that have struggled. Electric, meanwhile, made
Technology companies its biggest gain in almost
have surged in recent two years after it said CEO
months, and on Monday Jeffrey Immelt will step
almost all of the losses down after 16 years at the
came from the big com- helm. John Flannery, the
panies that have led the head of GE’s health care
way recently: Apple, Mi- division, will take over the
crosoft, Facebook, and Al- post in August. Immelt will
phabet, Google’s parent remain GE’s chairman un-
company. Stocks fell hard Trader Gregory Rowe, left, and specialist Maria Picone work on the floor of the New York Stock til the end of this year. In
in early trading, but gradu- Exchange, Monday, June 12, 2017. U.S. stock indexes slipped again Monday as technology com- recent years GE has sold
ally recovered part of their panies, which were near record highs last week, suffered a second day of sharp losses. or split off numerous busi-
losses as the day went on. (AP Photo/Richard Drew) nesses, including its finan-
Julian Emanuel, an equity that degree of extreme Some of the best-perform- composite dropped 32.45 cial services division, and
strategist for UBS, thinks sector outperformance, ing stocks fell, including points, or 0.5 percent, to focused on new technolo-
technology stocks may fall two things happen: the consumer-focused com- 6,175.46. The Russell 2000 gies as it returned to its roots
a lot further and wind up overall market tends to get panies, health care com- index of small-company as an industrial company.
10 percent lower than they a bit more volatile, and the panies, utilities and basic stocks slid 2.50 points, or 0.2 GE stock gained $1, or 3.6
were last week. He said the leading group tends to un- materials makers.The Stan- percent, to 1,419.21. percent, to $28.94, for its
technology companies derperform the laggards,” dard & Poor’s 500 index Apple shed $3.66, or 2.5 largest one-day jump since
should continue to do well, he said. dipped 2.38 points, or 0.1 percent, to $145.32 while October 2015.Benchmark
but the stocks have done Investors took a new look at percent, to 2,429.39. The Alphabet lost $8.31 to U.S. crude added 25 cents
so much better than the some groups of companies Dow Jones industrial av- $961.81. Facebook fell to $46.08 a barrel in New
rest of the market in recent that haven’t done that well erage, which closed at $1.16 to $148.44 while Mi- York. Brent crude, used
months that they are due in 2017, including energy, a record high Friday, lost crosoft sank 54 cents to to price international oils,
for a downturn. telecommunications and 36.30 points, or 0.2 percent, $69.78. Other 2017 top per- added 14 cents to $48.29 a
“Any time that you have real estate companies. to 21,235.67. The Nasdaq formers like Activision Bliz- barrel in London. q
US budget deficit jumps in May as spending outpaces revenue

By CHRIs S. RUGABER the Treasury Department are available to take open hasn’t grown 3 percent 17 percent in May but has
AP Economics Writer said Monday. Meanwhile, jobs. since 2005. been flat this year.
WASHINGTON (AP) — spending leapt 19 percent That is widening the defi- Meanwhile, the deficit has The government has also
The U.S. budget deficit rose to $329 billion. cit at the same time the increased to $433 billion in spent $35 billion more this
to $88.4 billion in May from Tax revenue is rising, but Trump administration has the first eight months of this year on interest on its debt,
$53 billion a year earlier, at a slower pace than in proposed steep tax cuts. budget year from $405 bil- a gain of 14 percent, Trea-
as government spending previous years and by less The administration has also lion last year. sury said.
in areas such as Medicaid than the Congressional pushed for sharp reductions Medicaid costs have risen That is mostly because in-
and defense rose at a fast- Budget Office has forecast. in spending, but Trump’s 3 percent, partly because flation has picked up a bit
er pace than revenue. That partly reflects slower proposed budget depends the Obama administra- since last summer, which
Receipts from individual growth in the economy on annual growth of 3 per- tion’s Affordable Care Act pushes up interest pay-
and corporate taxes rose and hiring. cent to balance over time. has brought more people ments on the government’s
7 percent last month from With the unemployment The economy expanded in the program. inflation-adjusted bonds,
May 2016 to $240 billion, rate low, fewer workers 1.6 percent last year and Defense spending jumped known as TIPS. q