Page 25 - ARUBA TODAY

BUSINESS Tuesday 4 June 2019
A25

US stocks fall as losses carry over from May

EW YORK (AP) — U.S. stocks heavily on government-
dropped Monday at mid- sponsored plans, including
day on Wall Street as inves- Medicare and Medicaid.
tors struggled to shake off Humana made clear that it
the steep losses incurred in is not seeking Centene in a
May. rare filing aimed at quash-
Declines in some major ing investor speculation.
technology and internet El Paso Electric rose 14.2%
companies weighed on the after getting a $2.78 billion
markets and offset gains in buyout offer from a private
industrial and health care equity fund affiliated with
stocks. J.P. Morgan.
Google's parent Alphabet ANXIETY PUSHES DEFENSE:
fell as media reports sug- The U.S. decision to expand
gested it faces an antitrust its trade war beyond China
investigation by the Jus- is adding to fears that eco-
tice Department. Those nomic growth and corpo-
reports also suggested rate profit growth will take
Amazon could come un- a hit this year.
der increased regulatory "Things are likely to get
scrutiny. Facebook also worse before they get bet-
weighed on internet stocks, ter," said a Bank of America
falling 3.5%. In this Aug. 24, 2015, file photo specialist Frank Masiello is reflected in his screen on the floor of the Merrill Lynch report.
Technology companies New York Stock Exchange. The investment bank is rec-
also fell broadly. Microsoft Associated Press ommending more caution
shed 1.3% and Adobe fell from investors as trade dis-
1.7%. Apple rose slightly ings as a global trade war estimates for companies in eral stocks early Monday. putes play out. Investors
ahead of its annual soft- flared up. China and the the S&P 500, citing trade Cypress Semiconductor have already been head-
ware showcase . U.S. have been escalat- tensions. Analysts have also surged 24.6% on the an- ing to less-risky holdings,
Among the gainers, Am- ing their trade dispute with warned that uncertainty nouncement that German including utility stocks and
gen rose 3.5% and Merck more tariffs on each other's over trade deals will crimp chipmaker Infineon is buy- bonds, since the trade dis-
rose 1%. General Dynamics goods while also threaten- business confidence and ing the company for more pute with China sharply es-
rose 2%. ing to ban technology and keep companies from in- than $10 billion in cash. Cy- calated in May.
The indecisive trading fol- resource sales. The U.S. ex- vesting internationally. press Semiconductors spe- Companies in the S&P 500
lows the first monthly loss for panded its trade war and KEEPING SCORE: The S&P cializes in wireless and USB performed better than ex-
the market in 2019 as inves- threatened to impose tar- 500 index fell 0.1% as of technology and Infineon pected in the first quarter,
tors deal with uncertainty iffs on Mexican goods start- 12:10 p.m. Eastern time. said the deal with create posting less than a half-
over the U.S. and its grow- ing June 10 because of an The Dow Jones Industrial the eighth biggest chip- percentage point contrac-
ing use of tariffs in interna- immigration dispute. Average added 5 points, maker in the world and a tion in profit, according to
tional trade disputes. As All of these moves have or 0.1%, to 24,822. The leading supplier of chips to Factset. But, the trade war
of Friday, the S&P 500 was rattled investors and their technology-heavy Nasdaq the automotive sector. continues hanging over
down 6.6% from its record confidence in prospects for composite fell 0.7%. Centene slid 9.4% after Hu- the current quarter, with
set on April 30. global economic growth. DEAL OR NO DEAL: News of mana declined to make a analysts expecting a 2%
Investors spent the bulk of Bank of America Merrill deals, made and denied, buyout proposal. Both in- contraction in corporate
May fleeing to safer hold- Lynch lowered its earnings drove movement for sev- surance companies focus profit.q

Samsung vows to keep up investment as trade war raises risks

Associated Press Samsung also last year an- quarter drop more than
SEOUL, South Korea (AP) — nounced a three-year plan 60% from a year earlier be-
Samsung Electronics' Vice to invest 180 trillion won cause of falling chip prices
Chairman Lee Jae-yong ($152 billion) to strengthen and sluggish demand for
has vowed to keep up ro- its memory chip segment display panels.
bust investments in key and other key sectors and Samsung has forecast that
businesses as South Korea's hire 40,000 more people in memory chip prices will
leading company weath- the process. continue to fall in the sec-
ers slowing demand and "In this rapidly changing ond quarter despite ex-
the impact of trade clashes environment, we need to pectations for a modest im-
between Washington and keep our unwavering fo- provement in demand for
Beijing. cus on the long-term, fun- mobile products.
In a weekend meeting with damental leadership in Analysts say potential U.S.
top Samsung executives, technology," Lee said in sanctions on Chinese tech-
Lee called for "unwaver- a statement provided by nology giant Huawei could
ing focus on long-term, Samsung. hurt Samsung by further re-
fundamental leadership Samsung is the world's big- ducing demand for chips
in technology" and reaf- gest maker of memory used such products.
firmed plans to invest 133 chips and smartphones, In the long run, though,
trillion won ($112 billion) to strong both in components Samsung's smartphone In this Feb. 5, 2018, file photo, Lee Jae-yong, vice chairman of
strengthen the company's and finished products. business could benefit from Samsung Electronics, gets into a car to leaves a detention cen-
ter in Uiwang, South Korea.
presence in the non-mem- The company saw its oper- sanctions against its lead- Associated Press
ory chip market. ating profit during the last ing rival in that sector.q