Page 24 - ARUBA TODAY

Tuesday 11 July 2017 BUSINESS
A24

Tech stocks gain in mixed finish for US indexes Abercrombie pulls

itself off the block
By ALEX VEIGA as fell on the New York out of the Federal Reserve The S&P 500’s technology and shares plunge
AP Business Writer Stock Exchange. later this week. Fed Chair sector, which went through
Wall Street capped a most- Bond prices rose. The yield Janet Yellen is due to ad- a sell-off a few weeks ago, NEW YORK (AP) — Aber-
ly listless day of trading on the 10-year Treasury dress Congress on Wednes- notched the biggest gain crombie & Fitch is no lon-
Monday with an uneven note fell to 2.37 percent day and Thursday. Monday. Chipmaker Nvid- ger up for sale, a develop-
finish for U.S. stock indexes. from 2.39 percent late Fri- “We’re going through a ia led the group, climbing ment that isn’t sitting well
Gains by technology and with investors hoping for
materials stocks were most- white knight to rescue the
ly outweighed by losses struggling teen retailer.
among real estate compa- Shares plunged 21 percent
nies, banks and other sec- to a 17-year low Monday.
tors. Macy’s and other big Abercrombie said in May,
retailers also took hefty loss- after closing dozens of un-
es. Energy companies rose derperforming stores, that
as the price of crude oil it was it in talks with several
rebounded from an early parties about a potential
slide. Investors were making deal. The company said
moves ahead of the next Monday that it has ended
corporate earnings report- all such negotiations.
ing season, which ramps More people are shopping
up this week. Technology at lower-cost, fast-fashion
stocks were a favorite, with stores like H&M and Forever
traders expecting the sec- 21, and that has wreaked
tor companies to post solid havoc on one-time mall
results, said Anastasia Am- mainstays like Abercrom-
oroso, global investment bie. Aeropostale Inc., Wet
specialist at J.P. Morgan Seal and others have al-
Private Bank. ready sought bankruptcy
“There’s definitely a pivot protection. Sears last week,
going on to earnings from Trader Patrick McKeon works on the floor of the New York Stock Exchange. Wall Street capped a after years of closing stores
some of the trading last mostly listless day of trading Monday with an uneven finish for U.S. stock indexes. and retrenching, said it
week,” Amoroso said, add- (AP Photo/Richard Drew) would close another 43 un-
ing that “investors are look- profitable Sears and Kmart
ing for some of the higher day. transition phase where in- $6.94, or 4.7 percent, to locations. It said earlier this
growth-opportunities and Trading also got off to a terest rates and Fed policy $153.70. year that in was unclear if
tech definitely stands out.” mixed start Monday com- were very friendly for quite Materials companies also it had enough cash to stay
The Standard & Poor’s 500 ing off a broad pickup in some time and that was posted big gains. CF Indus- in business through the end
index rose 2.25 points, or 0.1 major markets in Europe the most important sup- tries led the pack, adding of the year.
percent, to 2,427.43. The and Asia. port for the markets,” said $1.83, or 6.6 percent, to Hudson’s Bay Co., which
Dow Jones industrial aver- Investors appeared to Bruce Bittles, chief invest- $29.72. owns Saks Fifth Avenue,
age slid 5.82 points, or 0.03 mostly focus on the coming ment strategist at Baird. Big department stores Lord and Taylor, said last
percent, to 21,408.52. The start of the second-quarter “Now we’re moving more slumped, led by Macy’s. month that it was cutting
Nasdaq composite rose earnings season. The mar- toward the revival of the The company was the big- thousands of jobs in North
23.31 points, or 0.4 percent, ket expects earnings per global economy, includ- gest decliner in the S&P 500, America as sales slump.
to 6,176.39. The Russell 2000 share growth of about 7 ing the U.S., and what that sliding $1.60, or 7.1 percent, Abercrombie & Fitch Co.,
index of smaller-company percent from companies in might mean for earnings to $21.08. Gap fell $1.43, or based in New Albany,
stocks lost 7.36 points, or 0.5 the S&P 500. prospects going forward, 6.3 percent, to $21.21. Best Ohio, said that sales re-
percent, to 1,408.47. Traders also were looking and the markets are now Buy lost $3.64, or 6.3 per- main strong at its surf-in-
About as many stocks rose ahead to potential news dwelling on that potential.” cent, to $54.23.q spired Hollister brand and
is continuing to work on im-
US consumer credit up $18.4 billion in May proving the performance
at Abercrombie. In the
first quarter, sales at estab-
lished Hollister stores rose 3
By MARTIN CRUTSINGER increase in nearly six years, economic activity. trillion. The Fed’s monthly percent, but they slumped
AP Economics Writer was revised up to a more The strength last month re- credit report does not cov- 10 percent at Abercrom-
WASHINGTON (AP) — respectable increase of flected a greater use of er home mortgages or any bie. The chain has tried to
American consumers in- $12.9 billion. credit cards, which rose by other debt secured by real tweak its brand by dump-
creased their borrowing in Consumer borrowing is $7.4 billion, much stronger estate such as home equity ing the suggestive ads
May at the fastest pace closely watched for signals than the $1.2 billion April in- loans. that once defined it, and it
in six months, reflecting a it can provide about con- crease. The category that A separate report prepared has updated its look. That
sharp rebound in the cat- sumer spending patterns. includes auto loans and by the Federal Reserve has yet to turn its fortunes
egory that includes credit With the labor market con- student loans increased Bank of New York said that around.
cards. tinuing to churn out jobs $11.05 billion, slightly lower total U.S. household debt, First-quarter losses were
The Federal Reserve re- and the stock market at than April’s $11.8 billion covering all loans includ- wider and revenue slid.
ported Monday that total record levels, economists gain. Auto sales have been ing mortgages, reached a Shares fell $2.53 to $9.64
consumer borrowing rose believe that households will slowing this year after last record high in the first quar- Monday. Company shares
by $18.4 billion in May, the feel more confident about year’s record pace. ter of this year, topping the fetched almost 10 times
strongest gain since a $25.1 boosting their debt levels to The $18.4 billion rise in cred- previous peak reached in that amount at their height
billion increase in Novem- support increased spend- it pushed borrowing mea- 2008 as the financial crisis in 2007, just before the re-
ber. In addition, April’s gain ing. Consumer spending sured in the monthly report was plunging the country cession altered the retail
of $8.2 billion, the weakest accounts for 70 percent of to a fresh record of $3.84 into a deep recession.q
landscape.q