Page 24 - ARUBA TODAY

Thursday 17 augusT 2017 BUSINESS
A24

US stocks edge higher as retailers rally; oil firms fall Union Pacific lays

Gap climbed 50 cents, or off 500 managers,
250 rail workers
2.3 percent, to $22.57. Ex-
press added 27 cents, or 4.8
percent, to $5.84. Retailers By JOSH FUNK
had struggled a day earlier AP Business Writer
after poor results and lower OMAHA, Neb. (AP) — Union
forecasts from Dick’s Sport- Pacific is laying off 500
ing Goods and Advance managers and 250 other
Auto Parts. The S&P 500 in- workers to save about $110
dex of retailers climbed 1.7 million annually and elimi-
percent Wednesday after nate about 8 percent of
a 2.3 percent plunge the the railroad’s managers.
day before. The railroad told the affect-
Benchmark U.S. crude lost ed workers Wednesday
77 cents, or 1.6 percent, to that their jobs will be elimi-
$46.78 a barrel in New York. nated by mid-September.
Brent crude, used to price Union Pacific CEO Lance
international oils, dipped Fritz said that eliminating
53 cents, or 1 percent, to open positions through at-
$50.27 a barrel in London. trition and improving pro-
That pulled energy com- ductivity isn’t enough to
panies down further. EOG cut costs.
Resources fell $2.04, or 2.3 “Union Pacific for some
Kirkland Lake Gold President & CEO Anthony Makuch, center, accompanied by CFO Philip Yee, percent, to $84.98 and time has leveraged em-
ployee attrition and tech-
left, rings a ceremonial bell as their company’s stock begins trading on the floor of the New York Marathon Oil fell 34 cents,
Stock Exchange, Wednesday, Aug. 16, 2017. or 2.9 percent, to $11.19. nology to reduce general
(AP Photo/Richard Drew) Energy companies have and administrative costs,”
By MARLEY JAY to report their own results 6,345.11. The Russell 2000 slumped this month, but Fritz said. “Unfortunately,
AP Markets Writer Thursday, investors could index of smaller companies their second-quarter profits attrition alone will not keep
NEW YORK (AP) — U.S. change their minds again. inched up 0.30 points to have improved dramati- pace with our need and
stocks rose slightly Wednes- “This sector is not for the 1,383.53. cally compared to a year ability to reduce these
day as Urban Outfitters and faint of heart,” said JJ Kina- Clothing and accessories ago. A year ago the com- costs.”
Target helped retailers rally. han, chief strategist for TD retailer Urban Outfitters had panies were struggling to Union Pacific said the lay-
That was enough to cancel Ameritrade. “The market is a better second quarter make money thanks to offs are expected to pro-
out more losses for energy trying to figure out who the than Wall Street expected, a prolonged slump in oil duce about $110 million
companies. winners and losers are go- and analysts said there are prices. But for more than a in annual cost savings,
Urban Outfitters and Target ing to be.” some signs the company’s year, U.S. crude has mostly but the railroad will record
did better in the second He said turbulence for re- business is recovering after stayed between $40 and $90 million in pretax sever-
quarter than analysts ex- tailers will be a constant as years of struggles. The stock $55 a barrel. ance costs — mostly in the
pected, and Target raised online competition keeps rose $2.94, or 17.5 percent, Stocks made bigger gains third quarter — because of
its forecasts for the year. growing and customers to $19.76. Even with those earlier in the day, but they them.
That helped companies want more features like gains, it’s down 31 per- slipped after a group of Edward Jones analyst Dan
that sell clothing and other same-day delivery. cent this year and recently CEOs, including the heads Sherman said the layoffs
retailers. Technology com- The Standard & Poor’s traded at eight-year lows, of 3M and Campbell Soup, suggest Union Pacific’s
panies and firms that make 500 index picked up 3.50 far below its price of $45 a said they were leaving a cost-cutting efforts weren’t
and sell household goods points, or 0.1 percent, to share in early 2015. manufacturing jobs group keeping up with the rail-
also traded higher. 2,468.11. The Dow Jones Target gained $1.96, or over comments about road’s goals.
A wide variety of retailers industrial average added 3.6 percent, to $56.31. The made by President Donald “They just decided they
saw their shares sink the 25.88 points, or 0.1 percent, company raised its annual Trump about the racially will push cost-cutting more
day before based on weak to 22,024.87. The Nasdaq estimates after it did better charged violence in Char- strongly than they were
earnings reports. With Wal- composite gained 12.10 than analysts expected in lottesville, Virginia this past before,” Sherman said.
Mart and Ross Stores in line points, or 0.2 percent, to the second quarter. weekend.q Railroads have been under
pressure to reduce costs
because of modest growth
US home construction slumped in July in freight shipments overall
and a sharp decline in coal
shipments in recent years.
By JOSH BOAK slumped 17.1 percent, ley, chief economist at Am- 1.22 million. While home Both of the major freight
AP Economics Writer while single-family house herst Pierpont Securities, construction has increased, railroads in the eastern
WASHINGTON (AP) — construction slipped 0.5 said that because of the it’s done little to ease the United States — CSX and
Homebuilders pulled back percent. Home construc- lack of homes on the mar- pressure from a decline in Norfolk Southern — have
sharply on construction of tion has increased 2.4 per- ket “builders are attempt- listings for existing homes — announced more aggres-
apartment complexes in cent year-to-date, but the ing to meet that need but a much larger segment of sive cost-cutting efforts in
July, causing housing starts gains have done little to are hamstrung to a degree the housing market. the past year.
to tumble to a three-month offset the dwindling num- by shortages of skilled work- The number of sales listings CSX has announced 2,300
low. The Commerce De- ber of homes listed for sale. ers” and land restrictions. has been falling on an an- layoffs this year as part of
partment said Wednesday The shortage of properties Housing starts dropped nual basis for the past 25 a major restructuring under
that housing starts fell 4.8 for sale has pushed prices in the Northeast, Midwest months. There were 1.96 new CEO Hunter Harrison,
percent in July to a season- up at a faster pace than and West but rose modest- million homes for sale in who took over in March.
ally adjusted annual rate of income growth, making ly in the South. June, a 7.1 decline from Norfolk Southern is working
1.16 million. Groundbreak- home ownership less af- Building permits, an indica- a year ago, according to to reduce its expenses by
ings for multi-family build- fordable for many would- tor of future construction, the National Association of $650 million and improve
ings such as apartments be buyers. Stephen Stan- decreased 4.1 percent to Realtors.q efficiency by 2020.q