Page 25 - ARUBA TODAY

BUSINESS Tuesday 3 OcTOber 2017
A25

US construction US stocks climb, led by health care firms and banks
spending up by company Illumina, which

0.5% in August gained $3.03, or 1.5 per-
cent, to $202.23. Botox
By M. CRUTSINGER maker Allergan climbed
AP Economics Writer $6.03, or 2.9 percent, to
WASHINGTON (AP) — U.S. $210.98. Among industrials,
construction spending re- General Electric jumped
bounded 0.5 percent in 39 cents, or 1.6 percent, to
August after two months $24.57.
of contraction, helped by Oil prices dropped after
strength in home building, oilfield services company
and commercial and gov- Baker Hughes said last Fri-
ernment construction. day that more drilling rigs
The climb came after de- went into operation last
clines of 1.2 percent in July week after two weeks of
and 0.8 percent in June, declines, and Reuters re-
the Commerce Depart- ported that output of OPEC
ment reported Monday. nations grew in September.
It was the best showing Both of those reports sug-
since a 1.6 percent rise in gest that oil supplies are ris-
May. Still, the August gain ing. Benchmark U.S. crude
was not enough to recoup fell $1.09, or 2.1 percent,
the losses of the past two to $50.58 a barrel in New
months, leaving spending Trader Joseph Lawler works on the floor of the New York Stock Exchange. U.S. stocks set more York. Brent crude, the stan-
1.5 percent below the May records Monday as health care companies and banks continued to surge as investors grew more dard for international oil
level. optimistic about the recovery in manufacturers. prices, shed 67 cents, or 1.2
Housing construction was (AP Photo/Richard Drew) percent, to $56.12 a bar-
up 0.4 percent. Nonresi- By MARLEY JAY ally considered safer and has been going.”Hackett rel in London. Nordstrom
dential activity increased AP Markets Writer more cautious investments, added that investors in the slumped following a report
0.5 percent, reflecting NEW YORK (AP) — U.S. lagged the rest of the mar- U.S. seem to have gotten that talks to sell the compa-
strength in hotel and office stocks set more records ket. Energy companies more optimistic that a tax ny to a group of investors
building. The August re- Monday as health care missed out on the gains as cut package and an in- including the Nordstrom
bound was also helped by companies and banks investors worried that oil frastructure spending bill family could fall apart. The
a gain in spending by state continued to surge as in- supplies are rising. could pass a bitterly-divid- New York Post reported
and local governments, vestors grew more optimis- In the last few weeks, stocks ed Congress. That would that the would-be buyers
which helped offset a fur- tic about the recovery in have returned to the pat- strengthen the U.S. econ- are having trouble getting
ther decline at the federal manufacturers. tern they followed from omy and corporate earn- enough financing to com-
level. Stocks got a boost af- the November presidential ings. The Standard & Poor’s plete the sale, and that the
Economists believe that ter the Institute for Supply election to President Don- 500 index rose 9.76 points, recent bankruptcy of re-
construction spending Management said U.S. ald Trump’s inauguration in or 0.4 percent, to 2,529.12. tailer Toys R Us made that
will get a boost in coming factory activity hit a 13- January: growth-oriented The Dow Jones industrial process harder.
months as rebuilding ef- year high in August as hur- stocks have risen while the average advanced 152.51 MGM Resorts stock fell af-
forts get under way from ricanes disrupted supplies dollar has gotten stron- points, or 0.7 percent, to ter a man shot and killed
the recent devastating but drove up demand for ger and bond yields have 22,557.60. The Nasdaq at least 58 people and
hurricanes. Government manufactured goods. In- increased. “We’ve seen composite gained 20.76 wounded more than 500 at
analysts said that Hurri- vestors snapped up shares this acceleration in global points, or 0.3 percent, to a concert at MGM’s Man-
cane Harvey only affected of companies that are earnings growth over the 6,516.72. The Russell 2000 dalay Bay Hotel and Ca-
construction activity in Tex- linked to more rapid eco- last couple of months,” index of smaller-company sino in Las Vegas. It’s the
as for the last week of Au- nomic growth, like banks said Mark Hackett, chief of stocks jumped 18.61 points, deadliest mass shootings in
gust, while Hurricane Irma and health care and in- investment research at Na- or 1.2 percent, to 1,509.47. U.S. history. Police say the
did not have any impact dustrial companies as well tionwide Investment Man- All four indexes finished at shooter was 64-year-old
until September. as smaller, U.S.-focused agement. “We’ve seen record highs. Leaders in Stephen Paddock and that
The overall economy grew companies. High-dividend the rest of the world kind health care included ge- he shot and killed himself
at a 3.1 percent annual stocks, which are tradition- of pick up where the U.S. netic testing equipment inside the hotel. q
rate in the April-June quar-
more than two years. Ana- US factory activity surges to highest since 2004
ter, the best showing in

lysts believe activity slowed
a bit in the July-September By PAUL WISEMAN reading since May 2004. facturing — contracted ISM’s manufacturing sur-
quarter to around 2.5 per- AP Economics Writer Anything above 50 signals last month. vey committee, said the
cent GDP growth. But they WASHINGTON (AP) — U.S. that manufacturers are Factories are benefiting scramble for supplies for
expect the impact of re- factory activity rose to the growing, and the ISM sur- from a strengthening glob- rebuilding in the aftermath
construction efforts to start highest level in 13 years last vey shows they’ve been on al economy and a drop this of the hurricanes may have
boosting GDP as soon as month as hurricanes dis- a 13-month winning streak. year in the value of the U.S. driven manufacturing ac-
the current quarter. rupted supplies but drove New orders, production, dollar against other major tivity higher in September.
The 0.4 percent advance up demand for manufac- hiring and new export or- currencies. A weaker dollar Factories, he said, “are re-
in home building reflected tured goods. ders all grew faster in Sep- makes U.S. products less ex- ally struggling to meet de-
a 0.3 percent increase in The Institute for Supply Man- tember. pensive in foreign markets. mand.”
single-family construction agement, a trade group of Seventeen of 18 manufac- Some industries reported The overall U.S. economy
spending and a 0.9 per- purchasing managers, said turing industries reported that Hurricanes Harvey and expanded at a 3.1 percent
cent jump in the smaller its September manufactur- growth, led by textile mills Irma had disrupted supplies annual pace from April
and more volatile apart- ing index rose to 60.8 from and machinery. Only one and driven up costs. through June, fastest rate
ment sector.q 58.8 in August, the highest industry — furniture manu- Timothy Fiore, chair of the in more than two years. q