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BUSINESSThursday 1 September 2016
Energy companies pull US stocks lower as oil prices fall Lew: congressional
action may arise on
MARLEY JAY shrink as much as investors index gave up 5.17 points, 38 cents to $87.14. Schlum- Apple’s EU tax fight
AP Markets Writer hoped. The dollar gained or 0.2 percent, to 2,170.95. berger declined $1.64, or 2
NEW YORK (AP) — U.S. some strength, which sent The Nasdaq composite percent, to $79. MARTIN CRUTSINGER
stocks took small losses commodity prices lower, dipped 9.77 points, or 0.2 Tax preparer H&R Block AP Economics Writer
Wednesday as energy as expectations grew that percent, to 5,213.22. posted a bigger first-quar- WASHINGTON (AP) — U.S.
companies fell with the the Federal Reserve could Energy prices slumped af- ter loss and less revenue Treasury Secretary Jacob
than analysts expected. Lew on Wednesday criti-
Specialist Edward Zelles, left, works at his post on the floor of the New York Stock Exchange, The company, which re- cized a European ruling
Wednesday, Aug. 31, 2016. U.S. stocks took small losses Wednesday as energy companies fell ported weak results from that Apple owes more
with the price of oil and chemical and materials companies traded lower. tax season this spring, said than $14.5 billion in back
it is facing more competi- taxes. But he said the deci-
(AP Photo/Richard Drew) tion in the tax prep indus- sion may spur Congress to
try as well as a growing finally address the stalled
price of oil and chemical raise interest rates from ter the U.S. government number of independent effort to reform America’s
and materials companies their ultra-low levels as ear- said crude oil stockpiles tax preparers. H&R Block corporate tax structure.
traded lower. That pulled ly as next month. increased by 2.3 million dropped $2.54, or 10.5 per- Lew said that while the
the market lower for Au- “The more the market be- barrels last week, a bigger cent, to $21.66. The stock is Obama administration
gust, ending a five-month lieves a Fed rate hike is gain than analysts expect- down 35 percent this year. has failed in its efforts to
winning streak for stocks. coming based on better ed. Gasoline stockpiles Brown-Forman, the maker get tax reform through
The losses were very small, economic data, the more shrank, but not as much as of liquors including Jack Congress, he believes the
though, as this proved to be the dollar rises,†said Quin- investors had hoped. Daniel’s whiskey and Fin- unhappiness expressed
one of the quietest months cy Krosby, market strate- U.S. crude fell $1.65, or 3.6 landia vodka, slumped af- by both Democrats and
in recent history for stocks. gist at Prudential Financial. percent, to $44.70 a barrel ter its sales fell short of esti- Republicans following Eu-
Stocks traded lower all day “Last Friday (Fed Chair ) in New York. Brent crude, mates. Brown-Forman said rope’s announcement
and fell for the fifth time in Janet Yellen put the mar- the benchmark for interna- its results were hurt by weak on Tuesday could push
the last six days. The price ket on notice that she sees tional oil prices, lost $1.33, sales in emerging mar- Congress to act. He said
of oil dropped more than a rate hike in the coming or 2.7 percent, to $47.04. kets and the strong dollar, he is “hopeful that we will
3 percent after the U.S. months.†That helped send oil and which makes U.S. goods see action, probably not
government said crude oil The Dow Jones industrial gas companies lower. more expensive overseas. in my tenure, but early in
stockpiles grew more than average fell 53.42 points, or Chevron gave up $1.12, The stock declined $1.78, the next administration.â€
expected last week, while 0.3 percent, to 18,400.88. or 1.1 percent, to $100.58 or 3.5 percent, to $48.55. The European Commission
gasoline stockpiles didn’t The Standard & Poor’s 500 and Exxon Mobil skidded Materials companies took ruled Tuesday that Apple
some of the biggest losses. must pay roughly 13 billion
Chemicals maker DuPont euros ($14.5 billion) in back
lost 64 cents to $69.60. Agri- taxes plus interest for what
business giant Monsanto European authorities ruled
fell 94 cents to $106.50 and were unpaid taxes accu-
building materials com- mulated over a decade
pany Martin Marietta Ma- that Apple owes Ireland.
terials lost $5.80, or 3.1 per- Both Apple and Ireland
cent, to $183.03. have said they plan to ap-
The S&P 500 set records peal the decision. Lew said
in August, but ended the that he saw Europe’s effort
month down 0.1 percent. as “an attempt to reach
The index also traded in to the U.S. tax base to
in one of the narrowest tax income that ought to
ranges of any month in its be taxed by the United
history as investors tried to States.†He said it also ap-
get a feel for the Federal peared to be the latest in
Reserve’s plans.q a string of actions targeting
big U.S. companies. “The
Iron Range company on verge of shutting down pattern of actions certainly
appears to be highly fo-
DULUTH, Minn. (AP) — An Last week, Magnetation is in place our sole focus is waste. It rapidly expanded cused on U.S. firms,†Lew
Iron Range company notified the U.S. Depart- to continue to safely pro- as ore prices soared, open- said. “The largest actions
that mines leftover mine ment of Labor that it may duce and ship high quality ing four plants, including do appear to be aimed
waste and turns it into iron shut down its last operating pellets until the operations the Indiana facility, in quick squarely at our tax base.â€
ore concentrate is on the concentrate plant in Min- potentially shut down, and succession. The decision sparked out-
verge of shutting down un- nesota around Sept. 30, as work closely with several At its peak it employed rage in Congress with Sen.
less it’s rescued by outside well as an iron ore pellet interested parties that are more than 500 people, but Charles Schumer, D-New
investors. plant in Reynolds, Indiana, currently evaluating an in- now only Plant 4 remains York, calling it a “cheap
A federal judge approved that gets concentrate from vestment into Magnetation open in Minnesota. money grab by the Euro-
a bankruptcy settlement the Minnesota plant, and to avoid a shutdown of our Rep. Tom Anzelc, D-Balsam pean Commission, target-
Saturday that paves the turns it into pellets that feed plants,†Magnetation Presi- Township, told Minnesota ing U.S. businesses and
way for Grand Rapids- steel mills. dent Matt Lehtinen said in Public Radio (http://bit. the U.S. tax base.†House
based Magnetation to a statement. ly/2bSnHb9 ) that he wasn’t Ways and Means Chair-
wind down operations if it The Minnesota plant em- Magnetation opened its ready to give up on a com- man Kevin Brady, R-Texas,
doesn’t receive an influx of ploys about 160 workers first plant in 2008 after pat- pany that was once hailed called the action a “pred-
cash. A hearing is sched- while the Indiana facility enting a method to ex- as a big success story for atory and naked tax grabâ€
uled for Sept. 27. has about 100. tract iron ore from old mine the Iron Range. q which he said underscored
“Now that this agreement the need for congressional
action.q
