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BUSINESS Saturday 30 June 2018
A25

Big bank rally leads US stocks higher as 2nd quarter ends

By MARLEY JAY
Associated Press
NEW YORK (AP) — U.S.
stocks are rising Friday as
banks rally after the Feder-
al Reserve approved their
plans to raise dividends and
buy back more stock. Wells
Fargo is leaping after it said
it will repurchase $24.5 bil-
lion in stock. Nike is climb-
ing after it reported strong
results in its latest quarter
including improved sales in
North America. Stocks are
down this week, but are on
track to finish the second
quarter with small gains.
KEEPING SCORE: The S&P
500 index jumped 19 points,
or 0.7 percent, to 2,735 as
of 1 p.m. Eastern time. The
Dow Jones Industrial Aver-
age gained 230 points, or
1 percent, to 24,442. The
Nasdaq composite rose
36 points, or 0.5 percent,
to 7,539. The Russell 2000
index of smaller-company
stocks gained 4 points, or
0.3 percent, to 1,649.
Throughout this quarter In this April 5, 2018, file photo, a pedestrian passes the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on
stocks have been buffeted Friday, June 29.
by rising worries about trade Associated Press
disputes between the U.S. financial shape to weather fourth-quarter profit and international oils, rose 1.9 $26.50 per share of Conver-
and China as well as the a major downturn in the sales blew past Wall Street percent to $79.09 a barrel gys. Synnex lost 8.1 percent
European Union, Mexico, economy. forecasts. The compa- in London. to $98.09 and Convergys
and Canada. On Friday Wells Fargo surged 4.6 per- ny said revenue in North CONSUMER SPENDING: fell 2.4 percent to $24.75.
Canada announced $12.6 cent to $56.80. The Fed’s America grew after several The Commerce Depart- BONDS: Bond prices were
billion in retaliatory tariffs on approval is a notable win quarters of declines, and ment said U.S. consumers little changed. The yield on
U.S. goods in response to for Wells because earlier the company said it will increased their spending the 10-year Treasury note
the U.S. tariffs on steel and this year the Fed ordered buy back $15 billion in stock just 0.2 percent in May, a remained at 2.84 percent.
aluminum imports. the bank to replace several over the next four years. It disappointing result after CURRENCIES: The dollar
With trade tensions in fo- of its directors and limited gained 11.8 percent to two months of much stron- rose to 110.78 yen from
cus, stocks didn’t make big its growth in response to $80.16. ger gains. Inflation rose to 110.64 yen. The euro rose to
gains after a very strong abusive practices includ- ENERGY: Energy companies its fastest pace in six years. $1.1677 from $1.1555.
round of first-quarter cor- ing opening accounts in and oil prices continued Still, companies that stand OVERSEAS: France’s CAC
porate reports. The S&P 500 consumers’ names without to climb. Benchmark U.S. to benefit from faster eco- 40 gained 1.1 percent and
is up 3.6 percent since the permission. Those actions crude gained 0.9 percent nomic growth fared better the German DAX added
beginning of April after it duped consumers out of to $74.14 a barrel in New than the rest of the market 0.9 percent after a deal on
took a small loss in the first millions of dollars. York. It’s up 14 percent dur- Friday. That included retail- migration relieved pressure
quarter and the Dow indus- Wells Fargo admitted to ing the second quarter and ers and technology com- on the coalition govern-
trials are up 1.4 percent. those practices in 2016 and trading at its highest price panies, industrial firms and ment of Chancellor Angela
However the Nasdaq has has since agreed to pay since late 2014. The S&P 500 makers of chemicals and Merkel. Britain’s FTSE 100
jumped almost 7 percent more than $1.5 billion in index of energy companies other basic materials. added 0.3 percent.
and the Russell is up nearly 8 fines, penalties and legal has also gained 13 percent TECH TIE-UP: High-tech con- Japan’s benchmark Nik-
percent, and both recently settlements. this quarter, far better than tractor Synnex agreed to kei 225 edged 0.2 percent
hit record highs, as investors Other banks also rose. Citi- the rest of the market and buy customer manage- higher. South Korea’s Kospi
felt technology companies group added 1.6 percent its biggest gain in six and a ment company Convergys advanced 0.5 percent and
and smaller, U.S.-focused to $67.93. Goldman Sachs half years. in a deal the companies Hong Kong’s Hang Seng
companies were safe picks and Morgan Stanley, which Brent crude, used to price valued at $2.8 billion, or added 1.6 percent.q
during the trade tensions. weren’t allowed to boost
BANK ON IT: The Federal their dividends and repur-
Reserve allowed 32 of the chases, lagged behind.
35 largest banks in the U.S. Goldman fell 0.3 percent to
to raise their quarterly divi- $222.77 and Morgan Stan-
dends and buy back more ley dipped 0.3 percent to
stock. $48.13.
The central bank deter- JUST DID IT: Nike is on track
mined that those institu- for its biggest gain since /arubatoday/
tions are in good enough September 2014 after its