Page 25 - ARUBA TODAY

BUSINESS Wednesday 26 June 2019
A25

Stocks move lower as investors wait for trade updates

By DAMIAN J. TROISE been dealing with a mixed
Associated Press bag of economic data
NEW YORK (AP) — U.S. over the last few months.
stocks moved lower in On Tuesday, The Confer-
midday trading on Wall ence Board reported that
Street Tuesday as investors consumer confidence
headed for more defensive dropped to its lowest lev-
holdings and watched for el since September 2017.
updates on trade negotia- Meanwhile, home price
tions between the U.S. and gains slowed for the 13th
China. straight month and new
Investors are also wait- home sales fell in May.
ing for a speech by Fed REVENUE INJECTION: Ab-
Chairman Jerome Powell bVie fell 15.6% after the
Tuesday afternoon for any drug developer said it will
signal on the direction of in- pay around $63 billion
terest rates. for Allergan and add the
Technology and internet blockbuster Botox to its
stocks led the losses. Micro- products.
soft fell 2.2% and Facebook Allergan surged 27%.
fell 1.4%. FedEx dropped Botox brought in $868.4 mil-
2.6% and weighed down lion in revenue for Allergan
industrial stocks. during the first quarter. Ab-
Homebuilders fell sharply In this June 19, 2019, file photo trader Robert Chamak works on the floor of the New York Stock bVie currently makes the
after showing early gains. Exchange. blockbuster immune dis-
Lennar said on an earnings Associated Press order treatment Humira,
conference call that tariffs seemingly safer holdings. Dow Jones Industrial Aver- lating their trade war and but revenue is expected
on Chinese goods were A 27% surge from Botox age fell 54 points, or 0.2%, giving Wall Street jitters over to decline in the coming
adding hundreds of dol- maker Allergan held up to 26,671. The Nasdaq prospects for economic years as Humira loses pat-
lars to the cost of its homes. health care stocks. The composite 0.7%. growth. ent protection and faces
Lennar fell 5.9%. company is being bought WHERE WE STAND: Investors Wall Street is hoping for competition.
Banks also declined as by drug developer AbbVie. are essentially taking a step the U.S. and China to at WRECKING BALL: In anoth-
bond prices rose and yields Consumer product mak- back after three weeks of least find a path toward an er example of investor ner-
fell. Lower bond yields hurt ers were among the stocks gains while they wait for eventual resolution to the vousness over the U.S.-Chi-
a bank’s ability to charge making gains in another direction. Presidents Don- trade war. na trade dispute, home-
higher interest on loans. sign that investors are los- ald Trump and Xi Jinping Meanwhile, the Federal builder shares tanked after
Bank of America fell 1.2%. ing their appetite for risk will meet this week at the Reserve has been reassur- Lennar said tariffs on Chi-
The higher bond prices are and heading to safer in- Group of 20 meeting of ing Wall Street that it is pre- nese goods were add-
also a sign that investors vestments. major economies in Japan. pared to cut rates to help ing an average of $500 to
remain concerned about KEEPING SCORE: The S&P The world’s two largest stabilize the U.S. economy each new home.
a slowdown in economic 500 index fell 0.4% as of economies spent much of if the trade war crimps Lennar shares gained
growth and are favoring noon Eastern time. The the current quarter esca- growth. Investors have ground early on a solid
profit report but fell sharply
Powell says economy facing growing uncertainties after the tariff comment on
earnings conference call.
Among other homebuild-
ers, PulteGroup fell 3.9%
By MARTIN CRUTSINGER remerged, with apparent
Associated Press progress on trade turning and D.R. Horton fell 4.5%.q
WASHINGTON (AP) — Fed- to greater uncertainty and
eral Reserve Chairman Je- with incoming data raising
rome Powell said Tuesday renewed concerns about
the economic outlook has the strength of the global
become cloudier since economy,” he said.
early May, with rising un- In early May, President
certainties over trade and Donald Trump more than
global growth causing the doubled the tariffs on Chi-
central bank to reassess its nese goods after U.S.-Chi-
next move on interest rates. na trade talks broke down.
Speaking to the Council on The president threatened
Foreign Relations in New to essentially hit all Chinse
York, Powell said the Fed imports with tariffs if China
is now grappling with the In this May 1, 2019, file photo Federal Reserve Board Chair does not meet its demands
question of whether those Jerome Powell speaks at a news conference following a for greater protections for
uncertainties will continue two-day meeting of the Federal Open Market Committee in U.S. technology.
to weigh on the outlook Washington. Trump’s moves sent finan-
and require action. Associated Press cial markets tumbling be-
Powell did not commit to a sion.” since 2008. cause of concerns the
rate cut but said the cen- Many economists believe In his remarks, Powell said trade conflict could end
tral bank will closely moni- the Fed could decide at its that the outlook for the the current 10-year eco-
tor incoming data and be next meeting on July 30-31 economy had changed nomic expansion, which in
prepared to “act as appro- to cut its key policy rate, since the May meeting. July will become the lon-
priate to sustain the expan- something it has not done “The crosscurrents have gest in U.S. history.q