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BUSINESSSaturday 7 November 2015
Stocks end mixed as market factors Fed rate hike STREET BRIEFS
KEN SWEET when the policymakers at filled jobs across a range of “The Fed is still going to be Ford, UAW reach
AP Business Writer the nation’s central bank industries. extremely accommoda- tentative contract
NEW YORK (AP) — Stocks will finally raise interest “This makes it pretty likely tive for investors. A rate
had a mixed reaction Fri- rates. The market turmoil the Fed will raise rates in hike in December is remov- agreement: AP
day to the surprisingly over the summer kept the December,” said Priscilla ing those emergency mea-
strong October jobs report Fed from raising rates at Hancock, a global fixed in- sures that the bank put into DETROIT (AP) — Ford Mo-
as investors adjusted to the their September meeting, come strategist for J.P. Mor- place during the financial tor Co. and the United
prospect of higher inter- Auto Workers union have
est rates as early as next Traders Dudley Devine, left, Robert Arciero, cetner, and Robert Oswald gather at a post on the reached a tentative
month. agreement on a new four-
While the major indexes, on floor of the New York Stock Exchange. Stocks had a mixed reaction Friday to the surprisingly year contract. The UAW
the surface, had a muted said the agreement was
reaction to the jobs num- strong October jobs report as investors adjusted to the prospect of higher interest rates as early reached Friday morning.
bers, look at the individual The contract covers 53,000
parts of the market showed as next month. (AP Photo/Richard Drew) workers at 22 U.S. plants.
investors were actively re- No details were released,
shuffling their portfolios. and policymakers decided gan Asset Management. crisis,” Hancock said. but the contract is expect-
Dividend-paying stocks, to wait yet again at their Fed fund futures, which are The Dow Jones industrial ed to mirror deals reached
which are typically bought October meeting to see securities that bet on which average rose 46.90 points, with General Motors and
for their higher-than-aver- more signs the U.S. econo- way the Fed will move inter- or 0.3 percent, to close at Fiat Chrysler. Those con-
age payouts when interest my was on sure footing. est rates, now show roughly 17,910.33. The Standard tracts eliminate a two-
rates and bond yields are By nearly every account, a 74 percent chance of & Poor’s 500 index fell less tiered wage system at U.S.
low, dropped sharply on the October jobs report the central bank raising than a point to 2,099.20 plants over eight years.
Friday. The Dow Jones util- gave the Fed exactly what rates in December, up from and the Nasdaq compos- They also give pay increas-
ity index, a basket of 15 div- they wanted. The Labor De- 60 percent on Wednesday ite rose 19.38 points, or 0.4 es to longtime workers for
idend-paying utility stocks, partment said U.S. employ- and up from well below 50 percent, to close 5,147.12. the first time in a decade.
sank 4 percent. ers added 271,000 jobs, far percent as recently as late The bond market’s reac- Fiat Chrysler workers ap-
In contrast, bank stocks more than the most hope- summer. But the size of the tion to the jobs number was proved their contract last
rose sharply as investors bet ful of expectations, and predicted interest rate in- far more volatile than the month. GM workers are still
that higher interest rates the unemployment rate crease remains modest. stock market’s, with bond voting but are expected
would translate into higher dipped to a fresh seven- Investors expect interest prices sinking as investors to pass their agreement
profits, since they may be year low of 5 percent, from rates will go from their cur- scaled back their hold- this weekend. UAW lead-
able to charge more for 5.1 percent. The burst of hir- rent 0-to-0.25 percent lev- ings of Treasuries and safer ers from Ford’s plants will
lending. JPMorgan Chase ing, the most in 10 months, els to 0.5 percent. investments.q meet Monday in Detroit. If
rose $2.02, or 3 percent, to they vote to approve the
$68.46, Bank of America agreement, the union will
rose 64 cents, or 3.7 per- release details.q
cent, to $17.95 and Mor-
gan Stanley rose $1.53, or Lockheed buying
4.5 percent, $35.41. helicopter maker
“You just need to look at Sikorsky for $9B
those two groups and see
that the market is position- STRATFORD, Connecticut
ing itself for higher interest (AP) — Lockheed Martin
rates,” said Ryan Larson, has closed its acquisition
head of equity trading at of Black Hawk helicopter
RBC Global Asset Manage- maker Sikorsky Aircraft.
ment. Marillyn Hewson, chair-
Wall Street has been in woman, president and
a months-long guessing CEO of the Maryland-
game about the Federal based Lockheed Martin,
Reserve, trying to figure out announced completion of
the $9 billion sale with Unit-
United Airlines CEO Munoz plans to return in 2016 ed Technologies Corp. on
Friday. Hewson said Sikor-
SCOTT MAYEROWITZ back in the first quarter,” Munoz acknowledged Continental. More recent- sky will retain its Stratford,
AP Airlines Writer Munoz said in a letter to that United had failed its ly, federal prosecutors be- Connecticut, headquar-
NEW YORK (AP) — United employees released by the passengers with chronic gan investigating whether ters. The company em-
Airlines CEO Oscar Munoz company. delays and computer out- under Smisek the airline ploys nearly 15,000 work-
says he plans to return to Munoz had spent a month ages and that it had poor gave preferential treat- ers in 11 countries and its
work sometime in the first leading the Chicago- relations with its workers. ment to a former chairman helicopters are used by all
quarter of 2016. based United Continental He promised to fix both. of the Port Authority of five branches of the U.S.
Munoz, 56, has been out on Holdings before having the Munoz served as president New York and New Jersey, armed forces, as well as
medical leave following an heart attack. He became and chief operating of- which operates the New military in about 40 other
Oct. 15 heart attack. The CEO on Sept. 8 after Jeff ficer of CSX Corp. before York-area airports. nations. Sikorsky account-
company’s general coun- Smisek was pushed out accepting the CEO job United has only said that ed for $7.45 billion of Unit-
sel, Brett J. Hart, has led the amid a federal investiga- with United. He joined the it made the decision to ed Technologies’ $65.1
company in his absence. tion into the airline’s deal- United Continental board oust Smisek and two other billion in revenue last year.
“My time away will be a lit- ings with the government in 2010. senior executives follow- But its militarybusiness fell
tle longer than I would like, agency running one of its United has been plagued ing an internal investiga- when U.S. troops withdrew
but based upon discussion most important airports. by technology challenges tion into the Port Authority from Afghanistan and
with my doctors I will be During his short tenure, since its 2010 merger with matter.q Iraq.q
