Page 25 - ARUBA TODAY

BUSINESS Saturday 26 May 2018
A25

Stocks dip as oil prices and energy companies fall sharply

By MARLEY JAY
NEW YORK (AP) — Energy
companies and oil prices
took their worst losses in
months Friday on reports
OPEC countries plan to pro-
duce more oil soon. Stock
indexes finished an indeci-
sive week with small losses.
U.S. crude oil sank 4 per-
cent after multiple reports
indicated that Russia and
OPEC could start produc-
ing more oil soon. They cut
production at the start of
2017 following a big build-
up in supplies that had
pushed prices lower.
In November they extend-
ed that cut through the
end of 2018, but according
to reports this week, they
might agree to start rais-
ing production in June. U.S.
crude finished at a three-
year high Monday and has
fallen 6 percent since then.
The drop in the price of oil
has meant sharp losses for
energy companies, but it
gave airlines a boost as in-
vestors anticipated lower
fuel costs. Bond yields de-
clined again, which hurt
banks but helped divi-
dend-payers like house-
hold goods makers.
Wall Street also focused on
quarterly results from retail- In this May 10, 2018, file photo, stock screens are shown at the New York Stock Exchange.
ers. Gap plunged after it
said its namesake brand 2,721.33. The Dow Jones the last few months as the cus away from the name- cruise control. The compa-
is still struggling, but Foot industrial average fell 58.67 rising price of oil increased sake brand because it's ny warned owners not to
Locker soared after it said points, or 0.2 percent, to their fuel costs and cut into not connecting with shop- use cruise control until the
sales of premium shoes im- 24,753.09. The Nasdaq their profits. Delta stock is pers and has struggled to vehicles can be fixed with
proved. composite climbed 9.42 flat in 2018 and American separate itself from rivals. Its a software update. Drivers
Terry Sandven, chief eq- points, or 0.1 percent, to Airlines has fallen 14 per- Old Navy and Banana Re- can still stop the cars using
uity strategist at U.S. Bank 7,433.85 as consumer-fo- cent. public brands fared better. the brakes.
Wealth Management, said cused companies moved Bond prices kept rising. The Elsewhere, discount retailer Wholesale gasoline slid 2.3
energy companies and oil higher. The Russell 2000 in- yield on the 10-year Trea- Ross Stores gave up 6.8 per- percent to $2.18 a gallon.
prices had made big gains dex of smaller-company sury note fell to 2.93 per- cent to $77.34 after it gave Heating oil lost 2.5 percent
lately and were due to slow stocks lost 1.29 points, or 0.1 cent form 2.98 percent. disappointing forecasts for to $2.21 a gallon. Natural
down. He said the growing percent, to 1,626.93. The falling yields helped the current quarter and the gas remained at $2.94 per
global economy is going to U.S. markets will be closed household goods mak- full year. 1,000 cubic feet.
help the industry in the lon- Monday for the Memorial ers break out of their re- Foot Locker blew past es- Gold slipped 0.1 percent to
ger term. Day holiday. cent struggles. Toothpaste timates and said sales of $1,303.70 an ounce. Silver
"If you look at the sectors U.S. crude dropped to maker Colgate-Palmolive premium shoes continue to lost 0.8 percent to $16.55
that are outperforming, it's $67.88 a barrel in New York. added 2 percent to $63.75 improve, which has been an ounce. Copper fell 0.6
those that tend to be pro- Brent crude, used to price and cereal maker Kellogg a major concern for it and percent to $3.08 a pound.
growth," he said, especially international oils, fell 3 per- rose 2.7 percent to $65.23. other sporting goods com- The dollar rose to 109.37
technology and consumer- cent to $76.44 a barrel in The stocks, and others that panies. The stock jumped yen from 109.28 yen. The
focused companies. Over London. Increased oil pro- pay large dividends, have 20.2 percent to $54.74. euro fell to $1.1669 from
the last month that growth, duction and lower prices lagged behind the rest Shoe Carnival leaped 20.7 $1.1727.
and the strong company could reduce profits for of the market as investors percent to $31.80 after it Germany's DAX rose 0.6
profits that come with it, energy companies. Exxon found technology firms and beat expectation in the first percent and the CAC 40 in
have not translated into Mobil fell 1.9 percent to consumer-focused compa- quarter. It, too, said athletic France fell 0.1 percent. Brit-
gains for stocks. Sandven $78.71 and Chevron gave nies more attractive thanks shoe sales improved. ain's FTSE 100 rose 0.2 per-
said that could change up 3.5 percent to $122.19. to signs of strong growth in Fiat Chrysler fell 2 percent cent. Japan's benchmark
when companies start re- Among airlines, Delta the U.S. economy. to $21.82 after saying it's re- Nikkei 225 index rose 0.1
porting their second-quar- gained 2.7 percent to Gap dropped 14.6 percent calling 4.8 million vehicles percent and South Korea's
ter results in July. $55.87 and American rose to $28.15 following a drop in in the U.S. because in rare Kospi lost 0.2 percent. Hong
The S&P 500 index slid 6.43 3.1 percent to $44.91. The sales for Gap brand stores. circumstances drivers may Kong's Hang Seng shed 0.6
points, or 0.2 percent, to stocks have skidded over Gap has been shifting fo- not be able to turn off the percent.q