Page 25 - ARUBA TODAY

BUSINESS Thursday 13 July 2017
A25

Tech firms lead broad gains for US stocks; new high for Dow

By ALEX VEIGA interest rate at a gradual
AP Business Writer pace, and raised the pos-
Technology companies led sibility that the pace of rate
U.S. stocks higher Wednes- hikes would be slower than
day in a broad rally that previously expected should
helped nudge the Dow inflation remain below its
Jones industrial average to target level of 2 percent
a new high. annual growth.
In remarks before Con- Many economists believe
gress, Federal Reserve the Fed, which has raised
Chair Janet Yellen raised rates three times since De-
the possibility that the cen- cember, will increase rates
tral bank would consider one more time this year.
slowing the pace of its in- Yellen’s remarks suggest
terest rate increases if infla- the central bank may not
tion remained persistently need to raise interest rates
below its target level. as much as the market has
The move assuaged con- been expecting, said Rob
cerns among some traders Haworth, senior investment
worried that the Fed has strategy director at U.S.
been moving too quickly to Bancorp Wealth Manage-
raise interest rates despite ment.
a slowdown in inflation and “By holding rates lower,
the U.S. economy’s slug- Trader John Santiago works on the floor of the New York Stock Exchange, Wednesday, July 12, that means capital or in-
gish growth of just 1.4 per- 2017. Technology companies led U.S. stocks higher Wednesday in a broad rally that helped vestment remains some-
cent in the first quarter. nudge the Dow Jones industrial average to a new high. what cheaper for com-
Yellen’s remarks put inves- (AP Photo/Richard Drew) panies and the economy
tors in a buying mood and percent, to 6,261.17. The trading as investors began of the day. All 11 sectors in should be able to do well
sent bond yields lower, Russell 2000 index of small- to size up Yellen’s prepared the S&P 500 index notched with rates perhaps not rising
stoking demand for real er-company stocks picked remarks, which were re- gains. as much as some of us had
estate companies, utilities up 11.27 points, or 0.8 per- leased ahead of her testi- In her semiannual testimony feared,” Haworth said.
and other high-dividend cent, to 1,424.32. mony. before the House Financial Yellen also said she plans
paying stocks. Materials The stock market looked The indexes opened high- Services Committee, Yellen to start trimming the Fed’s
companies also posted poised for a big move early er across the board and said the central bank ex- massive bond holdings this
hefty gains. on, climbing in premarket stayed in the green the rest pects to keep raising a key year.q
“Investors would prefer
ularly if the economy isn’t Visa looking to help small businesses go cashless
lower interest rates, partic-
gaining the kind of trac-
tion that would warrant a By KEN SWEET to other industries and pos- “We are declaring war on the more revenue Visa
faster rate-hike path,” said AP Business Writer sibly other countries as well. cash,” said Andy Gerlt, a gets.
Quincy Krosby, chief mar- NEW YORK (AP) — Visa is Despite the proliferation of spokesman for Visa. Those fees, which can run
ket strategist at Prudential looking to push more small credit and debt cards, and To participate in Visa Inc.’s into the thousands of dol-
Financial. “This is positive businesses into updat- the advent of technologies Cashless Challenge, small lars each year depending
for the markets.” ing their digital payment like Apple Pay and Sam- business restaurants, ca- on how much the business
The Standard & Poor’s 500 technology, offering up to sung Pay, cash remains fés or food truck owners sells, are the reason many
index gained 17.72 points, $10,000 each to 50 U.S.- a significant method of will need to describe what small businesses prefer
or 0.7 percent, to 2,443.25. based small business own- payment in many indus- cashless means for them, cash.
The Dow rose 123.07 points, ers that are committed to tries across the U.S. and their employees and cus- “At the end of the month,
or 0.6 percent, to 21,532.14, going cashless. around the world. Going tomers. when you look at a credit
a record high. The aver- The program will focus on completely cashless often Visa isn’t doing this for char- card statement and see
age, which had been up restaurants and food es- requires upgrades to cur- ity. The world’s largest pro- how much you paid, it’s a
more than 171 points, last tablishments, Visa said rent point-of-sale systems, cessor of credit and debit real number that hits you
set a record high on June Wednesday, with the ex- which remains an impedi- cards takes a fee from ev- right in the face,” says Mat-
19. pectation that Visa will ex- ment for many small busi- ery payment that runs on thew Geller, president of
The Nasdaq composite pand the program in the nesses, which is largely its network. The more pay- the National Food Truck As-
added 67.87 points, or 1.1 coming months and years where cash remains king. ments done through them, sociation, a trade group.q