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BUSINESS Wednesday 1 november 2017
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Aetna 3Q profit October: Consumer confidence rises to 17-year high

soars up, issues By PAUL WISEMAN and the highest reading than 36 percent of survey ing accounts for about 70

strong forecast AP Economics Writer since December 2000. respondents told the Con- percent of U.S. economic
WASHINGTON (AP) — The business research ference Board that jobs output. The economy grew
AP Health Writer American consumers are group’s index measures were “plentiful” — highest at a healthy 3 percent
Aetna trumped third-quar- the most confident they’ve consumers’ assessment share since mid-2001. annual pace from July
ter earnings expectations been in nearly 17 years, of current conditions and The overall index hit bottom through September.
and raised its 2017 forecast more good news for an al- their outlook for the next six at 25.3 in February 2009 at The October confidence
again, even as the health ready healthy economy. months. Both rose in Octo- the depths of the Great Re- readings “suggest the
insurer’s withdrawal from The Conference Board said ber. cession before rebounding economy will continue ex-
the Affordable Care Act’s Tuesday that its consumer A healthy job market con- as the U.S. economy recov- panding at a solid pace for
insurance marketplaces confidence index hit 125.9 tributed to the sunny mood. ered. Economists monitor the remainder of the year,”
contributed to a revenue in October, up from a re- Unemployment is at a 16- Americans’ confidence Conference Board econo-
miss. The nation’s third- vised 120.6 in September year low 4.2 percent. More because consumer spend- mist Lynn Franco said.q
largest insurer balanced a
5-percent drop in revenue
with a bigger decrease in Stocks rise:
health care costs and im-
provements in its Medicare S&P 500 closes seventh straight month of gains
Advantage business. Over-
all net income jumped 39 stock. The company said it choice for the next Fed
percent, to $838 million. rejected the unsolicited bid chair. He’s expected to
While detailing third-quar- from Emerson Electric on make the announcement
ter results Tuesday, Aetna Oct. 10. Rockwell Automa- on Thursday, and the lead-
leaders stayed quiet on a tion jumped $13.82, or 7.4 ing candidate appears to
report from late last week percent, to $200.82. be Jerome “Jay” Powell,
that drugstore chain and On the losing end was who is already a member
pharmacy benefits man- Under Armour, which re- of the Fed’s board.
agement giant CVS in- corded the largest loss in The Fed has been slowly
tends to buy the insurer. the S&P 500 after it said de- raising interest rates, and
Chairman and CEO Mark mand for its sporting gear in encouraging economic
Bertolini said at the start North America weakened reports on Thursday further
of a call with analysts that last quarter and cut its fore- strengthened expecta-
they wouldn’t comment cast for earnings this year. tions that it will continue.
on “rumors or speculation.” Its Class A shares fell $3.89, Confidence among U.S.
In the third quarter, Aetna Tapestry Inc. CEO Victor Luis, right, home to Coach, Kate Spade or 23.7 percent, to $12.52. consumers hit its highest
Inc. said that its Medicare and Stuart Weitzman brands, is applauded as he rings the New Besides earnings, investors level last month in nearly 17
Advantage enrollment York Stock Exchange opening bell, Tuesday, Oct. 31, 2017. are also facing a deluge of years, for example.
grew more than 7 percent (AP Photo/Richard Drew) other events that could be Investors are also wait-
to about 1.5 million peo- By STAN CHOE ter Kellogg and Mondelez headliners on their own. ing to hear details about
ple. Medicare Advantage AP Business Writer International both report- Several of the world’s larg- Washington’s attempts to
plans are privately run ver- NEW YORK (AP) — U.S. ed stronger results for the est central banks are meet- cut income-tax rates. A cut
sions of the government’s stocks inched ahead on latest quarter than analysts ing this week, and the would help boost profits for
Medicare coverage pro- Tuesday after the makers expected. Kellogg jumped Bank of Japan decided on companies, and stocks of
gram for the elderly. of Kellogg’s cereal and $3.66, or 6.2 percent, to Tuesday to keep its interest smaller companies in par-
Health insurance is Aetna’s Oreo cookies joined the $62.53, and Mondelez rose rates at ultra-low levels. The ticular have been rising
main product, and most of parade of companies re- $2.13, or 5.4 percent, to Bank of England is expect- and falling in sync with ex-
its enrollment of more than porting stronger-than-ex- $41.43. ed to raise interest rates pectations for an overhaul
22 million people comes pected profits. “It’s been a fantastic earn- on Thursday, which would of the tax system.
from commercial cover- The Standard & Poor’s 500 ings season,” said JJ Kina- be the first increase in in a Bond yields held steady
age sold through employ- index gained 2.43 points, han, chief market strategist decade. And the Federal Tuesday as prices for Trea-
ers or directly to individuals. or 0.1 percent, to 2,575.26, at TD Ameritrade. “People Reserve will wrap up a two- surys were close to flat. The
But the insurer and its com- the latest tick higher in talk about taxes, low inter- day meeting on Wednes- yield on the 10-year Trea-
petitors also have been what’s been a remarkably est rates and all these oth- day, though most econo- sury note was flat at 2.37
growing their business tied smooth ride this year. The er things, but what really mists expect it to wait until percent, and the two-year
to government-funded index closed out October drives the market is earn- its December gathering to yield rose to 1.60 percent
Medicare and Medic- with its seventh straight ings.” raise rates for the third time from 1.58 percent late
aid programs. Aetna said month of gains, the longest More than half the com- this year. Monday. The 30-year Trea-
Tuesday that contributions such streak in more than panies in the S&P 500 have More attention is on Presi- sury slipped to 2.87 percent
from government business four years. reported their results for the dent Donald Trump’s from 2.88 percent.q
now represent more than The Dow Jones industrial July-through-September
half the company’s total average rose 28.50, or 0.1 quarter, and most have
health care premiums. percent, to 23,377.24, and topped Wall Street’s fore-
Insurers also have been the Nasdaq composite casts. Several big names
scaling back their pres- gained 28.71, or 0.4 per- are still on the docket for
ence in another govern- cent, to 6,727.67, a new this week, with Facebook
ment-backed market: the record. Smaller stocks did set to report on Wednes-
ACA’s marketplaces. The better than the rest of the day and Apple on Thurs-
sign-up window for 2018 market, and the Russell day.
coverage starts Wednes- 2000 index of small-cap Rockwell Automation
day, and Aetna intends to stocks gained 11.64, or 0.8 surged to the biggest gain
sit that one out by com- percent, to 1,502.53. in the S&P 500 after it re-
pletely leaving the market Food companies helped ceived a buyout bid worth
for next year.q lead the market higher af- $215 per share in cash and