Page 25 - ARUBA TODAY

BUSINESS Thursday 28 sepTember 2017
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Small companies make biggest gains as US stocks rise

By MARLEY JAY Smaller, domestically-fo-
AP Markets Writer cused banks and technolo-
NEW YORK (AP) — U.S. gy and industrial firms made
stocks climbed Wednes- especially large gains, and
day as smaller companies the Russell 2000 index of
soared following a report smaller-company stocks
that showed business in- made its biggest gain since
vestment climbed in Au- March. The tax proposal
gust. Investors also hoped was similar to what inves-
stocks will benefit from tax tors had come to expect,
cuts proposed by President and with months of negoti-
Donald Trump and con- ations likely ahead and key
gressional Republicans. details missing, it’s not clear
The Labor Department what kind of plan might
said orders for long-lasting ultimately pass. But lower
manufactured goods rose, corporate taxes could help
and a gauge of business smaller companies more
investment climbed for the than large ones.
second month in a row. In- “A corporate tax cut tends
vestors hope that means to be better news for small-
U.S. manufacturing is get- er companies because
ting stronger as the global they don’t have as many
economy continues to ways to reduce their tax Nigel Travis, center, Chairman and CEO of Dunkin’ Brands, attends the opening bell ceremony at
improve, and they bet on rate,” said Warne. Nasdaq, Wednesday, Sept. 27, 2017, in New York. The company, headquartered in Canton, Mass.,
continued growth: technol- The proposal would cut has Dunkin’ Donuts and Baskin-Robbins brands. Standing with Travis are David Hoffmann, second
ogy companies rallied for tax rates for individuals from left, president of Dunkin’ Donuts U.S. & Canada, and Nelson Griggs, right, president of the
a second day, while the and corporations. It would Nasdaq Stock Exchange.
prices of traditionally safe lower the top corporate (AP Photo/Mark Lennihan)
investments like bonds and tax rate to 25 percent from average rose 56.39 points, jumped more than 9 per- climbed to 2.30 percent
gold dropped. its current 35 percent, and or 0.3 percent, to 22,340.71. cent since mid-August. The from 2.24 percent. That
“We’ve been waiting for also reduces the number of The Nasdaq composite S&P mid-cap and small- helped banks, as higher
that,” said Kate Warne, an personal tax brackets and leaped 73.10 points, or 1.1 cap indexes also climbed. interest rates mean they
investment strategist for Ed- nearly doubles the stan- percent, to 6,453.26. The Labor Department’s can charge more to lend
ward Jones, of the recent dard deduction used by The Russell 2000 did even report gave investors hope money.
improvement. “Business most Americans. better and continued to the economy will keep Bank of America picked up
spending has been rela- The Standard & Poor’s 500 set records. It gained 27.95 growing, and Wall Street 60 cents, or 2.4 percent, to
tively weak,” with spending index added 10.20 points, points, or 1.9 percent, to bet that interest rates will $25.41 and Citigroup rose
by consumers keeping the or 0.4 percent, to 2,507.04. 1,484.81. After a sluggish keep rising. The yield on $1.34, or 1.9 percent, to
economy afloat. The Dow Jones industrial few months, the Russell has the 10-year Treasury note $72.28.q

US middle class gets richer, but wealthy do even better

By CHRIS RUGABER have restored some wealth ic Policy Institute.
AP Economics Writer to middle income families. It also points to why so
WASHINGTON (AP) — Most Even with the improvement, many Americans remain
American families grew the Fed’s report, known as frustrated with the econ-
richer between 2013 and the Survey of Consumer omy: On many measures,
2016, but the wealthiest Finances , starkly illustrates most families still haven’t
households pulled even the depth of the nation’s fully recovered from the
further ahead, worsening wealth and income gaps. 2008-2009 downturn. In
the nation’s massive dis- The disparities exist along fact, the median measures
parities in wealth and in- lines of income, race and for wealth and income still
come. ethnicity, and between cit- trail their 2001 levels.
The median net worth of ies and rural dwellers. Lael Brainard, a Fed poli-
all American families rose “You’re seeing a continu- cymaker, raised concerns
16 percent last year from ing pulling apart in the in a speech Tuesday that
2013 to $97,300, accord- wealth and income data,” long-running inequalities
ing to a Federal Reserve said Elise Gould, senior may hobble U.S. economic
survey released Wednes- economist at the Econom- growth. q
day. The median is the This photo shows dollar bills in New York. The Federal Reserve
point where half of families released a comprehensive report on U.S. households’ financial
fall below and half above. health, Wednesday, Sept. 27, 2017, including income and net
That’s the first gain for mid- worth of typical households.
dle class households since (AP Photo/Mark Lennihan)
the recession upended the class incomes rising. Since first five years of the recov-
economy nearly a decade 2015, the economic recov- ery, when higher-earning
ago. ery’s benefits have been households reaped most
The figures echo data re- spread broadly, to nearly of the benefits. A low and
leased earlier this month all income levels and ra- falling unemployment rate
from the Census Bureau, cial and ethnic groups. But has helped push up pay,
which also showed middle- those gains arrived after the while rising home prices