Page 25 - ARUBA TODAY

BUSINESS Tuesday 13 augusT 2019
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Stocks move broadly lower as trade war anxiety lingers

By ALEX VEIGA taken stocks on a wild ride
Associated Press in August.
Banks and technology The S&P 500 index zoomed
companies drove a broad up and down last week,
slide in stocks on Wall Street ending with its second
Monday afternoon that straight weekly loss. The
knocked the Dow Jones In- wild swings follow President
dustrial Average more than Donald Trump's threat to
300 points lower. impose more tariffs on Chi-
The sell-off adds to losses nese goods, followed by
that the market racked up China's move to allow its
last week amid heightened currency to weaken.
anxiety over the U.S. China- Trump has said he'd be "fine"
trade war. if the U.S. and China don't
Investors are coming off go ahead with a meeting
of a week of wild swings next month, dampening in-
that ended in yet another vestors' hopes for a path to
loss. The market has been resolving the economically
riddled with worry that the damaging trade war.
fallout from the costly trade MERGER CHATTER: Shares in
conflict will undercut an al- Viacom and CBS fell amid
ready slowing global econ- published reports sug-
omy and hurt corporate Specialist Anthony Matsic works at his post on the floor of the New York Stock Exchange, Monday, gesting the entertainment
profits. Aug. 12, 2019. companies are close to a
Traders shifted money into Associated Press merger deal. Viacom slid
U.S. government bonds 4.6% and CBS lost 1.7%.
Monday, sending bond Technology, health care growth. panies to report their earn- GLITTERING RESULTS: Barrick
prices higher. That pulled and consumer discretion- Investors are facing a rela- ings for the latest quarter. Gold rose 0.5% after report-
down the yield on the 10- ary sector stocks account- tively slow week as far as KEEPING SCORE: The S&P ing a fourth quarter surge
year Treasury to 1.65% from ed for much of the mar- economic reports and cor- 500 index was down 1% in gold production and a
1.73% late Friday. The yield ket's decline. Symantec porate earnings. The Labor as of 2 p.m. Eastern time. profit that met Wall Street
is used as a benchmark for dropped 4.7%, Nektar Ther- Department will release its The Dow Jones Industrial forecasts. The company re-
interest rates on mortgages apeutics slumped 10% and consumer price index for Average fell 316 points, or affirmed a solid 2019 fore-
and other consumer loans. Tractor Supply fell 4.2%. July on Tuesday and Com- 1.2%, to 25,970. The Nas- cast for gold production.
The drop in bond yields Real estate and utilities merce Department will daq composite dropped FEEDING GROWTH: Sysco
weighed on financial sec- stocks posted the smallest release last month's retail 1%. The Russell 2000 index rose 3.5% after the food dis-
tor stocks. Bank of Ameri- declines. Traders usually sales results on Thursday. of smaller companies fell tributor beat Wall Street's
ca fell 2.4% and Citigroup seek the shelter of utilities Macy's reports quarterly 1.1%. fiscal fourth quarter profit
gave up 2.5%. Credit card and bonds when they want results on Wednesday and FEAR FACTOR: Anxiety and forecasts. The company's
issuer Synchrony Financial a more secure place to put Walmart will report re- fear over the U.S.-China revenue edged higher
slid 3% and Capital One Fi- their money because of sults on Thursday. They are trade war continues to hov- on growth from its U.S.
nancial dropped 2.4%. concerns over economic among the last major com- er over the market and has operations.q

UK economy shrinks for first time since 2012 as Brexit bites

By PAN PYLAS pen on March 29, but has son, has insisted that there
Associated Press been delayed to the end will be no further delay to
LONDON (AP) — The Brit- of October after Parliament the Brexit date and that
ish economy shrank in the rejected the withdrawal Britain will leave the EU on
second quarter of the year agreement that the previ- Halloween come what
for the first time in six and ous prime minister, Theresa may. That's stoked fears,
a half years largely be- May, had negotiated with particularly in currency
cause Brexit uncertainties the EU. Compelled by Par- markets where the pound
weighed heavily on busi- liament, May requested has been sliding, that Brit-
ness investment, official fig- the extension. ain will leave the EU with-
ures showed Monday. Before the extension re- out a deal, a development
The decline, the first since quest, many firms stock- that would see tariffs and
the fourth quarter of 2012, piled products to help other restrictions imposed
was unexpected. Most cushion them in case Brit- on traded goods.
economists thought that ain crashed out of the EU A fruit stall displays fruit at a market in London, Wednesday, Aug. With all that uncertainty, the
the economy would be on March 29 without a 7, 2019. Bank of England warned
flat. deal. That business activity Associated Press last week that there's a
The Office for National helped the economy grow one-in-three chance that
Statistics said the contrac- by 0.5% in the first quarter. Brexit uncertainty is weigh- EU, weakened further in Britain will slip into recession
tion came "at a time of in- Since then, companies ing on the British economy the second quarter, con- in the early part of 2020
creased volatility around have stopped stockpil- more than anticipated. tracting by 0.5% following even if a Brexit ends up be-
the U.K.'s original planned ing as much, weighing on Business investment, which a modest uptick in the first ing smooth. The pound fell
exit date from the Europe- growth overall. has been historically weak three months of the year. after the release of Friday's
an Union in late March." The disappointing figure since the country voted May's replacement as GDP figures, down 0.2% on
Brexit was meant to hap- is set to raise alarm that in June 2016 to leave the prime minister, Boris John- the day at $1.2115.q