Page 24 - Aruba Today

A24
BUSINESSFriday 22 January 2016
US stocks rise as energy stocks rally after big slump
MARLEY JAY
AP Markets Writer
NEW YORK (AP) — Stocks
rose Thursday and recov-
ered some of their steep
losses from the day before.
The price of oil also recov-
ered from a big decline.
That lifted energy com-
panies, which have been
struggling as energy prices
tumble.
European markets also
rose on hopes the Euro-
pean Central Bank will do
more to aid the region’s
economy.
In the U.S., energy stocks
climbed as oil prices
bounced back from their
worst day in four months,
and strong earnings from
Verizon lifted telecom
stocks. Blue chip stocks did
better than the rest of the
market. The Dow Jones
industrial average had its
second-best day of 2016.
The Dow added 115.94
points, or 0.7 percent, to
15,882.68. The Standard
& Poor’s 500 index rose
9.66 points, or 0.5 percent,
to 1,868.99. The Nasdaq
composite index added
less than half a point and
closed at 4,472.06.
Stocks were on pace for
much larger gains earlier
in the day. The Dow was
up 272 points shortly after
noon, which would have
canceled out Wednes-
day’s loss.
U.S. crude rose $1.18, or 4.2
percent, to close at $29.53
a barrel in New York. On
Wednesday U.S. crude
took its biggest one-day
loss since September. Brent
Average US rate on 30-year mortgage falls to 3.81%
WASHINGTON (AP) — Av-
erage long-term U.S. mort-
gage rates fell this week
for a third straight week as
global stock markets con-
tinued to be pounded by
falling oil prices and worries percent from 3.19 percent.
over economic growth.
Mortgage buyer Freddie
Mac said Thursday the av-
erage rate on a 30-year
fixed-rate mortgage de-
clined to 3.81 percent
from 3.92 percent a week
earlier. That was its lowest
level in three months. The
rate has increased from
crude, a benchmark for in-
ternational oils, rose $1.37,
or 4.9 percent, to $29.25 a
barrel in London.
Energy stocks have crum-
Stock traders follow stock prices at the New York Stock Exchange. Stocks rose Thursday and
recovered some of their steep losses from the day before. The price of oil also recovered from a
big decline. That lifted energy companies, which have been struggling as energy prices tumble.
bled as the price of oil fell
from $100 a barrel in mid-
2014. The price of oil is the
lowest it’s been since 2003.
Natural gas company
Southwestern Energy
jumped after saying it will
eliminate around 1,100
jobs, or 44 percent of its
work force, in the next few
months. Its shares added
$1.42, or 19.2 percent,
to $8.80. Coal and natu-
ral gas company Consol
Energy surged 97 cents,
or 19.1 percent, to $6.04.
its 3.63 percent average a
year ago but remains well
below its historic average
of 6 percent. The average
rate on 15-year fixed-rate
mortgages dipped to 3.10
On Wall Street Wednesday,
stocks tumbled as the price
of oil suffered its worst one- mortgage rates track. The
day drop since September.
The Dow Jones industrial
average dropped more
than 500 points during the
day. The market clawed
back much of the decline
but still ended sharply
Pipeline company Kinder
Morgan rose $1.87, or 15.6
percent, to $13.88. Consol
and Southwestern were the
second- and third-worst
performing S&P 500 stocks
in 2015. European Central
Bank head Mario Draghi
said the ECB will consider
using more stimulus mea-
sures at its next meeting in percent and France’s CAC
March as it tries to bolster gained 2 percent.
the European economy.
The prospect of more stim-
ulus sent the euro down to
$1.0875 from $1.0894 late
Wednesday. The ECB has
been buying government-
backed bonds as part of its
efforts to stimulate the re- Chinese economic policy
gion’s economy. Yields on
lower with a loss of 249.28
points, or 1.6 percent. The
continuing tumult in stock
markets around the world
has pushed up prices of
U.S. government bonds
as investors seek safety.
That has depressed the
yields on the bonds, which
yield on the 10-year Trea-
sury bond dropped to 1.98
percent Wednesday — its
lowest level since Octo-
ber — from 2.09 percent
a week earlier. The yield
slipped further to 1.97 per- of the loan amount.q
Applications for US
unemployment aid
10-year bonds issued by Eu- up to 6-month high
ropean countries dropped
following Draghi’s remarks. C. S. RUGABER
That suggests investors ex- AP Economics Writer
pect government bond WASHINGTON (AP) — The
number of people seeking
unemployment benefits
rose last week to the high-
est level since July, though
applications remained at
(AP Photo/Mark Lennihan) historically low levels.
THE NUMBERS: Weekly ap-
prices to rise further. plications for unemploy-
European stock indexes ment aid rose 10,000 to
also rose. Britain’s FTSE 100 a seasonally adjusted
increased 1.8 percent, Ger- 293,000. The four-week av-
many’s DAX climbed 1.9 erage, a less volatile mea-
sure, increased to 285,000,
the highest since April.
David Lefkowitz, senior eq- The number of Americans
uity strategist at UBS Wealth receiving aid has fallen
Management, said the ECB nearly 9 percent in the past
is responding to the current year to 2.2 million.
turmoil in the markets while THE TAKEAWAY: The ap-
the Fed wants to keep plications figure remains
raising interest rates and below 300,000, where it
has stood since last March.
seems to be in disarray. q That is a low level that
points to few layoffs.
Yet it has increased near-
ly 10 percent in the past
month. The rise could re-
flect volatility in the data
after the winter holidays,
when many temporary re-
tail employees are laid off.
The government adjusts
the figures to reflect those
seasonal trends, but isn’t
always able to do so per-
fectly.
KEY DRIVERS: Global finan-
cial markets have plunged
since the year began over
fears that world economic
growth is slowing by more
than most analysts expect-
ed. A sharp plunge in oil
prices has also unnerved
investors, who see it as a
potential sign of slower
growth.
Applications for unemploy-
cent Thursday morning.The ment aid are a proxy for
benchmark yield has fallen layoffs and can indicate
sharply since the start of the whether businesses are
year amid the stock market sufficiently nervous about
turbulence. At the end of the economy to cut jobs.
2015, it stood at 2.30 per- Some companies have an-
cent.To calculate average nounced job cuts in recent
mortgage rates, Freddie weeks, including Johnson
Mac surveys lenders across & Johnson, Regions Bank
the country at the begin- and Aeropostale.
ning of each week. The Last week’s rise in applica-
average doesn’t include tions “is not a big move, but
extra fees, known as points, it is enough to be concern-
which most borrowers must ing,” said Jim O’Sullivan,
pay to get the lowest rates. an economist at High Fre-
One point equals 1 percent quency Economics. “The
data are starting to sug-
gest some slowing. Claims
will be very important to
watch in coming weeks.”q