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Saturday 1 July 2017 BUSINESS
A24

Industrial firms lead US stock indexes mostly higher AP: US consumer

spending up 0.1%
By ALEX VEIGA next week, though many Treasury yield rose to 2.30 cent this year, while the despite pay gains
AP Business Writer investors seized on the final percent from 2.27 percent Dow is up 8 percent. The
Wall Street closed out the trading day of the quar- late Thursday. Nasdaq has racked up a By PAUL WISEMAN
final day of the second ter and the previous day’s The major stock indexes gain of 14.1 percent. The AP Economics Writer
quarter with slight gains af- market slide to buy more got off to a shaky start early Russell 2000 is up 4.3 per- WASHINGTON (AP) —
cent. Americans enjoyed a
Strong corporate earnings healthy increase in income
and revenue have under- last month but didn’t
pinned the market’s gains spend much of the gain.
this year. Expectations The Commerce Depart-
among investors that Presi- ment said Friday that per-
dent Donald Trump and sonal income rose 0.4 per-
the Republican-led Con- cent in May, up from a 0.3
gress would slash taxes, increase in April.
boost federal spending on But consumer spending
infrastructure and enact rose just 0.1 percent last
other business-friendly poli- month after climbing 0.4
cies have also helped drive percent in both March and
stocks higher. April.
Investors appeared to tem- After-tax income rose 0.6
per those expectations in percent, the biggest gain
recent weeks as the Trump since December 2012.
administration hit legislative The gap between the May
snags in its bid to pass a increase in income and
health insurance overhaul. the increase in spending
On Thursday, S&P Global drove the U.S. savings rate
Ratings noted that senti- to 5.5 percent, the highest
ment on Wall Street, which since last September.
Economists monitor con-
had been strong following
Traders Gregory Rowe, left, and Robert Oswald work on the floor of the New York Stock Trump’s election, has be- sumer spending closely
Exchange. Wall Street closed out the final day of the second quarter with slight gains after a gun to soften. because it accounts for
broad rally faded in the last few minutes of trading Friday. about 70 percent of U.S.
(AP Photo/Richard Drew) “Now, we no longer believe economic activity. Despite
the federal government will the modest rise in May,
ter a broad rally faded in shares or close out positions Friday, but soon veered be able to push through analysts remain confident
the last few minutes of trad- and book profits. higher and held course for even a small infrastructure- that consumers picked up
ing Friday. “Overall we’re ending this much of the day. spending package, and their spending overall this
The Dow Jones industrial quarter with a strong mar- A last-minute flurry of selling we expect only moderate quarter and will be eager
average and the Standard ket, even though technol- nudged the Nasdaq and tax cuts to be passed early to spend their savings and
& Poor’s 500 index eked out ogy has taken a hit, other Russell 2000 slightly into the next year as midterm elec- higher incomes this sum-
tiny gains, while the Nas- sectors have moved up,” red. tions approach,” wrote mer.
daq composite closed es- said Quincy Krosby, chief The Dow, S&P 500 and Nas- Beth Ann Bovino, S&P Glob- “Real disposable personal
sentially flat. market strategist at Pruden- daq ended the week in al’s U.S. chief economist. income has risen a whop-
Industrial stocks and con- tial Financial. negative territory. This was Remarks from central bank ping 4.7% (annualized)
sumer-focused companies The S&P 500 index rose 3.71 also the worst week of the officials in Europe earlier over the past three months,
led the gainers. Energy points, or 0.2 percent, to year for the Nasdaq and this week helped set the the strongest growth in
stocks also rose as crude 2,423.41. The Dow gained the third loss in the last four tone for the market, spur- nearly two years,” James
oil prices closed higher for 62.60 points, or 0.3 per- weeks for the tech-heavy ring speculation among Marple, senior economist
the seventh straight day. cent, to 21,349.63. The Nas- index. investors that global inter- at TD Economics, said in a
Utilities, technology and daq lost 3.93 points, or 0.1 The market’s snapshot at est rates could move high- research note.
health care companies percent, to 6,140.42. The the halfway mark for 2017 er. That sent bond yield “This should continue to un-
were among the biggest Russell 2000 index of small- is more encouraging, how- sharply higher and helped derpin healthy consumer
decliners. company stocks gave up ever. lift shares in banks. Traders spending through the sec-
ond half of the year.” Con-
Trading was mostly sub- 0.84 points, or 0.1 percent, The S&P 500 index, the also sold off technology sumers got off to a slow
dued ahead of the Inde- to 1,415.36. broadest measure of the stocks. The sector had its start earlier this year. From
pendence Day holiday Bond prices fell. The 10-year stock market, is up 8.2 per- worst week this year.q January through March,
consumer spending rose
Buffett to buy 700 million shares in Bank of America at lackluster 1.1 percent
annual pace, the slowest
since the second quarter
By KEN SWEET back in 2011, when the mon stock if the bank were nificantly below the stock’s of 2013 and one reason
AP Business Writer bank was struggling fol- ever to raise its annual divi- current price of about $24 the economy grew at an
NEW YORK (AP) — Warren lowing the financial crisis, dend above 44 cents a a share. If Buffett were to annual pace of just 1.4 per-
Buffett’s Berkshire Hatha- into common shares in the share, which the bank did sell his acquired stake in cent the first three months
way said Friday it will amass bank. The stake in the bank this week. This week, the the bank, Berkshire would of 2017.
a 700-million-share stake in will make Berkshire the larg- bank announced it would walk away with a profit of President Donald Trump
has pledged to push annu-
Bank of America, making est shareholder in Bank of raise its annual dividend to $12 billion. al economic growth past 3
Buffett the largest share- America, exceeding mu- 48 cents a share starting in Buffett is also the largest percent, but most econo-
holder in two of the na- tual fund giant Vanguard. the third quarter. shareholder in Wells Fargo, mists are skeptical given
tion’s largest banks. Buffett said in his annual After the bank raises the a stake that has drawn America’s aging workforce
Berkshire said that it will shareholder letter that he dividend, Buffett will con- some controversy following and disappointing gains in
convert warrants it pur- would convert his warrants vert his warrants at a price Wells Fargo’s sales practic- productivity — output per
chased in Bank of America in Bank of America to com- of $7.14 a share, which is sig- es scandal.q hour worked.q