Page 25 - ARUBA TODAY

BUSINESS Friday 7 June 2019
A25

US stocks edge higher as investors wait for trade updates

Associated Press Real estate and industrial
Major U.S. stock indexes stocks fell. Macerich slid 2%
edged mostly higher in af- and Kansas City Southern
ternoon trading Thursday dropped 2.1%; the railroad
as investors await signs of company gets nearly half
progress in trade negotia- its revenue from Mexico.
tions between the U.S. and A smattering of company
Mexico. earnings results brought on
The muted trading followed either severe punishment or
two days of gains driven by lavish rewards from inves-
investors betting that the tors. Technology company
Federal Reserve could cut Ciena and personal stylist
interest rates this year. Fed company Stitch Fix surged
Chairman Jerome Powell on solid results. Arts and
said Tuesday that the cen- crafts retailer Michaels and
tral bank would "act as ap- home decor company At
propriate" if the Trump ad- Home Group plunged on
ministration's disputes with weak reports.
China and Mexico threat- KEEPING SCORE: The S&P
ened the U.S. economic 500 index was up 0.2% as
expansion. of 1:26 p.m. Eastern time.
U.S. and Mexican officials The Dow Jones Industrial
held a second day of trade Average rose 81 points, or
talks Thursday. Both sides 0.3%, to 25,621. The Nasdaq
have claimed progress, but In this May 14, 2019, file photo specialists Michael Pistillo, left, and David Haubner confer on the composite fell 0.1% and the
President Donald Trump in- floor of the New York Stock Exchange. Russell 2000 index of smaller
sists that a "lot of progress" Associated Press companies dropped 0.8%.
must be made if he's to halt Stock indexes in Europe
the 5% import tax set to go ing to safer investments, like staples stocks were driving Energy stocks recouped were mixed.
into effect June 10. bonds and gold, because much of the market's gains. some ground following a GOLD RUSH: The price of
The trade disputes threaten of the uncertainty surround- CVS Health climbed 2.2%, broad sell-off a day earlier. gold continued marching
to stifle economic growth in ing negotiations. Advanced Micro Devices Occidental Petroleum rose higher as investors seek
the U.S. and globally. Trad- Gains in health care, tech- jumped 6.9% and Camp- 3% and Chevron added safer investments amid the
ers have been mostly flee- nology and consumer bell Soup rose 2.9%. 2.1%. trade disputes.q

After a delay, gold shines as trade battles hit stocks

By STAN CHOE ers interest. The price of
Associated Press gold has shuffled between
NEW YORK (AP) — Gold is $1,270 an ounce and $1,350
shining again as investors an ounce this year, and an-
scramble for safety amid alysts say that's partly be-
the widening global trade cause of the strengthening
war. value of the U.S. dollar. The
The price of gold has two often move in opposite
climbed nearly 5% since directions, and the dollar
May 21, while markets has climbed against the
around the world fell. Last euro and other currencies
week was the best of the this year, though the gains
year for gold after President have pared recently.
Donald Trump surprised Gold also tends to do best
markets by threatening to when inflation — or con-
raise tariffs on Mexico. cern about it — is high, and
It's not all that surprising, they've been largely non-
because gold has often existent. An ultralow unem-
served as a safe haven ployment rate hasn't been
when markets are tumbling. enough to push wages
During the wrenching 2007- higher and feed through
09 downturn, gold climbed into higher prices across
23.5% when the S&P 500 lost In this Tuesday, July 22, 2014, file photo, gold bars are stacked in a vault at the United States Mint, the economy. Some inves-
55.2%. Gold also managed in West Point, N.Y. tors even say that deflation
to eke out gains during the Associated Press — when prices are drop-
summer of 2011, when wor- ping — may be a bigger
ries about the European market's calm in early May cycling back and forth have offered much softer threat than high inflation.
debt crisis and the down- with a tweet threatening between roughly $1,000 landing pads for investors Analysts at J.P. Morgan say
grade of the U.S. credit escalating tariffs against per ounce and $1,400 for this year. Like gold, bonds gold's price could continue
rating nearly felled the bull China. In fact, until last the last six years, and it's have a reputation for of- to rise, and they're fore-
market for U.S. stocks. week gold had been on still down nearly 30% from fering someplace safe to casting an average price
But gold didn't immediately pace to sink in May. its record set in 2011 at hide when the stock mar- of $1,405 per ounce in the
provide solace for investors It's part of a longstand- $1,891.90. ket is tumbling. Unlike gold, last three months of the
after Trump shattered the ing trend. Gold has been Instead of gold, bond funds bonds also pay their own- year. q