Page 24 - ATD19September2015
P. 24
A24 Household wealth
reaches a new high
BUSINESSSaturday 19 September
in US: $85.7 trillion
Wall Street dips as investors mull Fed rate decision
C. S. RUGABER
BERNARD CONDON that has in the past typical- crisis low. The Fed meets the Fed cited low inflation, AP Economics Writer
AP Business Writer ly boosted stocks. But some again next month and in weakness in the global WASHINGTON (AP) — Ris-
NEW YORK (AP) — Fears investors, expecting the December. economy and unsettled fi- ing home values drove a
over slowing global growth Fed would be confident The Dow Jones industrial nancial markets. Investors modest increase in Ameri-
hammered stocks in the enough to nudge rates average ended down have been on edge about cans’ household wealth to
U.S. and Europe on Friday up by at least a quarter 289.95 points, or 1.7 per- a slowdown in China and a new high of $85.7 trillion
other emerging market in the April-June quarter.
Trader Tommy Kalikas works on the floor of the New York Stock Exchange. Fears over slowing nations since last month. The Federal Reserve said
global growth hammered stocks in the U.S. and Europe on Friday and lifted prices of government The S&P 500 index is down Friday that Americans’
bonds and other assets seen as safer bets. about 8 percent from its re- stock portfolios climbed
cord close of 2,130.82 set in $61 billion in value, while
(AP Photo/Richard Drew) May. housing wealth increased
UBS strategist Julian Eman- $499 billion. Total house-
and lifted prices of govern- of a point, interpreted the cent, to 16,384.79. The S&P uel said a mix of other fac- hold wealth is up from $85
ment bonds and other as- stand-pat stance as a sign 500 slumped 32.12 points, tors may have also fed the trillion in the first quarter.
sets seen as safer bets. that the global economy is or 1.6 percent, to 1,958.08 selling Friday. Rising household wealth
The selling pushed down dangerously weak. and the Nasdaq compos- Investors are worried about can help boost growth by
major stock indexes in Eu- “If growth in the strongest ite shed 66.72 points, or 1.4 third-quarter corporate making consumers feel
rope, before spreading to economy — the United percent, to 4,827.23 earnings, which are ex- wealthier and more likely
the U.S. The Standard and States — isn’t strong enough Bonds rallied as investors pected to drop 4 percent to spend. Economists es-
Poor’s 500 index slumped to raise rates even a quar- sought safety. The bench- for companies in the S&P timate that consumer
to its biggest loss in more ter of point, what does that mark 10-year Treasury note 500, he said. Also, several spending rises 3 to 5 cents
than two weeks as all 10 in- say about the prospects gained, pushing down its dozen House Republicans for every dollar increase in
dustry sectors of the broad for global growth?” said Bill yield to 2.13 percent. Gold have said they won’t vote wealth. Household spend-
market gauge fell. The drop Strazzullo, chief strategist at also gained. for a funding bill that in- ing drives about two-thirds
was led by energy shares. market research firm Bell A gauge of investor fear, cludes money for Planned of the economy
Stocks slumped a day after Curve Trading. the VIX index, shot up 7 Parenthood, raising the Yet greater wealth doesn’t
the Federal Reserve de- The Fed has kept its bench- percent to 23. In early July, specter of a government necessarily benefit the typi-
cided to hold interest rates mark rate close to zero this measure of expected shutdown next month. cal family.
near zero. That means bor- for almost seven years. In swings in stock prices was “When you add up the Fed, The stock market has more
rowing costs will remain low that time, U.S. stocks have 12. China, the cloudy earnings than doubled since the
for a while yet, a prospect tripled from their financial In its rate decision Thursday, outlook and, and possibly recession ended in June
of government shutdown, 2009, which mainly benefits
it’s not a surprise that the richer households.
market has had a defen- Approximately 10 percent
sive reaction,” Emanuel of the wealthiest Ameri-
said. cans own 80 percent of
In Europe, Germany’s DAX stocks, according to re-
fell 3.1 percent while the search by Edward Wolff,
CAC-40 in France dropped an economist at New York
2.6 percent. Britain’s FTSE University.
100 ended the day 1.3 per- The Fed’s figures aren’t
cent lower. adjusted for population
Among U.S. stocks mak- growth or inflation. House-
ing big moves, JPMorgan hold wealth, or net worth,
Chase fell $1.71, or 2.7 reflects the value of homes,
percent, to $60.94 as in- stocks and other assets
vestors judged that lower minus mortgages, credit
interest rates for longer cards and other debts.
mean banks won’t be able Americans also stepped up
charge more for loans. Citi- borrowing, a sign of confi-
group slumped $1.36, or 2.6 dence in the economy.
percent, $50.29. q Total mortgage debt grew
at the fastest level since
Universal Health Services buying Foundations for $350M the recession ended in
2009.
NEW YORK (AP) — Universal centers. Universal Health Services from its acute care hospi- Overall household debt,
Health Services, one of the Universal Health Services runs more than 200 hospi- tals, surgical facilities and which includes mortgages,
largest hospital operators said the deal will speed its tals. radiation oncology facili- student loans, auto loans
in the U.S., said Friday it will growth in treating addic- ties. and credit card debt, in-
buy addiction treatment tion and it praised Founda- At the end of 2014 its The majority owner of Foun- creased at the fastest
facility company Founda- tions’ marketing. behavioral health busi- dations is the Pritzker family, pace in a year.
tions Recovery Network for The King of Prussia, Penn- ness ran 216 facilities in 37 one of the wealthiest fami- The jump in mortgage lend-
$350 million. sylvania-based company around the U.S. and in the lies in the U.S. Their holdings ing reflects the fact that
Foundations provides treat- said the Federal Trade United Kingdom, and its include Hyatt Hotels Corp., home sales are rising at a
ment for adults who have Commission has approved acute care business had founded by Jay Pritzker in solid pace, and that fewer
both addiction and mental the purchase and it ex- 25 hospitals in six states 1957. Business executive sales are being made to
health disorders. It has two pects to complete it within and Washington, D.C. Uni- and philanthropist Penny investors and wealthy in-
facilities in California, one in a few weeks. Shares of Uni- versal Health Services had Pritzker, Jay Pritzker’s niece, dividuals, who frequently
Northern Georgia and one versal Health Services Inc. $8 billion in revenue that has been U.S. Secretary pay cash for homes.q
in Memphis, Tennessee, lost 78 cents to $138.23 in year, with about half com- of Commerce since June
along with eight outpatient midday trading Friday. ing from the behavioral 2013. q
health business and half
