Page 25 - ARUBA TODAY

BUSINESS Thursday 5 april 2018
A25

In this March 22, 2018 photo, a worker arranges imported soybeans at a port in Nantong in east
China's Jiangsu province.
Associated Press
Stocks surge as market escapes

early plunge on trade fears

By MARLEY JAY dent Donald Trump's top points, or 1 percent, to
AP Markets Writer economic adviser, Larry 24,264.30, after a swing of
NEW YORK (AP) — After an Kudlow, suggested the U.S. more than 700 points. The
early jolt, stocks rallied and tariffs won't be implement- S&P 500 index climbed
finished higher Wednesday ed if China lowers barriers 30.24 points, or 1.2 per-
as investors bet that back- to trade. Others noted the cent, to 2,644.69. The Nas-
and-forth tariff threats be- two countries have too daq composite rose 100.83
tween the U.S. and China much to lose from a trade points, or 1.5 percent, to
won't blossom into a big- war. 7,042.11. The Russell 2000
ger dispute that damages "The most likely outcome is index of smaller-company
global commerce. smoke, but no fire," said Bill stocks gained 19.51 points,
The Dow Jones industrial av- Adams, senior international or 1.3 percent, to 1,531.66.
erage plunged 501 points economist at PNC Finan- Boeing, which delivered
after the opening bell but cial. "The amount that both one-fourth of all its planes
made it all back, and more. countries have invested in to China last year, fell as
Household goods makers, bilateral trade cooperation much as 5.7 percent early
retailers and homebuilders and economic coopera- on and finished with a loss
led the way while technol- tion is so significant that the of $3.38, or 1 percent, at
ogy companies reversed costs of going back would $327.44.
some early losses. But two be very painful, and more Adams, of PNC Financial,
major targets of China's than either country would said the tariffs would be
possible tariffs, aerospace want to bear." especially painful for com-
company Boeing and farm U.S. trade policy has panies in agriculture: ma-
equipment maker Deere, loomed over the markets chinery makers in the U.S.
finished lower. since early March. Over the would pay more for import-
The early declines followed last five weeks stocks have ed components, and they
an announcement by the plunged numerous times as wouldn't sell as much food
Chinese government that investors reacted to tariff in China because their
it plans to impose tariffs of developments with shock products would be more
25 percent on a list of U.S. and concern that an in- expensive. He said that
goods worth $50 billion, crease in protectionism will will stir up political pressure
including soybeans and hurt international trade and against the trade sanc-
aircraft. The U.S. plans to company profits. But often, tions.
place tariffs on a similar investors have caught their Farm equipment maker
amount of Chinese goods, breath and decided that a Deere lost $4.47, or 2.9 per-
including industrial robots full-blown trade war is un- cent, to $148.57, after an
and telecom gear, subject likely, resulting in sharp re- early drop of 6.2 percent.
to potential tariffs to protest coveries. Futures for Soybeans, a big
Beijing's alleged theft of On Wednesday, both of U.S. export to China, fell 2.2
U.S. technology. those things appeared to percent on the CBOT.
But investors relaxed as happen in the same day. Hormel jumped $1.65, or
both sides emphasized a The Dow Jones industrial 4.8 percent, to $35.87.
willingness to talk. Presi- average advanced 230.94 European stocks fell.q