Page 25 - ARUBA TODAY

BUSINESS Friday 30 august 2019
A25

Stocks move broadly higher on hopes for US-China trade talks

By ALEX VEIGA 500 was up 1.4% as of 12:38
Associated Press p.m. Eastern Time. The
Stocks marched broadly Dow Jones Industrial Aver-
higher in afternoon trad- age climbed 359 points, or
ing on Wall Street Thursday, 1.4%, to 26,393. The Nasdaq
adding to the market's solid gained 1.6%.
gains from a day earlier. Investors favored smaller
The rally came as investors company stocks for the
held out fresh hope that second straight day. The
new talks between the U.S. Russell 2000 index was up
and China set for Septem- 1.5%.
ber can lead to progress in Major stock indexes in Eu-
the nations' ongoing trade rope were broadly higher.
war. TRADE WAR OPTIMISM: A
Technology companies published report noted that
accounted for a big slice China's commerce ministry
of the gains. Microsoft rose said it is discussing the next
1.9% and Apple added round of in-person trade
1.6%. Financial and com- negotiations with the U.S.
munications services stocks to held next month.
also were big winners. JPM- In an interview with Bloom-
organ climbed 2.5% and berg, Treasury Secretary
Facebook rose 2.1%. In this Aug. 21, 2019, file photo trader Jeffrey Vazquez works on the floor of the New York Stock Steven Mnuchin said talks
Retailers were also doing Exchange. with China are ongoing
well. Discount store chain Associated Press and are expected to con-
Dollar General led the way tinue in Washington, though
after reporting quarterly tors were feeling more op- short-term ones, just shy of 1.47% late Wednesday. he did not specify when.
results that topped Wall timistic, demand for U.S. a so-called inversion in the The 2-year Treasury rose to Trade negotiators are due
Street's forecasts. A broad government bonds showed U.S. yield curve that has 1.52% from 1.49% the day to meet in September for
swath of retailers was trad- signs of waning after surg- correctly predicted previ- before. The yield for the new negotiations, though
ing higher. Walmart gained ing in recent weeks amid ous recessions. 10-year Treasury has been there has been no sign of
1.3%, Macy's rose 2.3% and recession worries. Bond prices fell, sending dipping below that of the progress in recent days
Amazon added 1.6%. Even so, long-term bond the yield on the 10-year 2-year this week. since an escalation by both
In another sign that inves- yields remained even with Treasury up to 1.52% from While an inverted yield sides earlier this month. Last
curve has preceded every week, the trade conflict
US pending home sales slid 2.5% in July U.S. recession, it is not a sig- escalated again with both
nal that one is imminent. It sides threatening new tar-
in sign of slowdown has taken 14 to 34 months iffs on each other's goods,
for past recessions to begin triggering a sharp sell-off
in global markets. Investors
following a yield curve in-
version. worry the spiraling tariff war
By BANI SAPRA Uncertainty over the U.S.- over trade and technology
WASHINGTON (AP) — Few- China trade conflict and it could tip the global econo-
er Americans signed con- impact on corporate prof- my into recession.
tracts to buy homes in July, its has rattled investors this EYE ON THE ECONOMY: In-
signaling that the housing month. vestors shrugged off new
market has yet to enjoy a The market is on track to data showing the U.S.
strong bounce from lower end the week with a gain economy grew at a slower
mortgage rates. after having declined the pace in the second quar-
The National Association of past four weeks in a row. ter. The government re-
Realtors said Thursday that The major indexes are still ported that gross domes-
its pending home sales in- down more than 2% as the tic product, the broadest
dex fell 2.5% to 105.6 in July. month draws to a close. gauge of economic health,
The index has slipped 0.3% If those losses hold, Au- advanced at a moderate
from a year ago as uncer- gust would be the second 2% annual rate in the April-
tainty has mounted about This Aug. 15, 2019, photo shows a "sale pending" sign on a home monthly drop for the mar- June quarter, down from a
the health of the economy. in East Derry, N.H. ket this year after May. 3.1% gain in the first quar-
With trade tensions and Associated Press KEEPING SCORE: The S&P ter. q
fears of a possible reces-
sion intensifying, a robust of mortgage rates nearing but there is nothing yet sug-
job market hasn't been all-time lows. gestive of a sharp pullback
enough to strengthen sales. Ben Ayers, a senior econo- in the housing market," Ay-
Sales have also been ham- mist at Nationwide, said the ers said.
pered by the lack of avail- housing market was mov- The pace of signed con-
able homes on the mar- ing in fits and starts, reflect- tracts dropped in all four re-
ket, which has contributed ing the competing forces gions of the country in July,
to home prices climbing of low mortgage rates and with the West experiencing
faster than incomes and a limited supply of homes, the greatest decline in ac-
pricing out some would-be along with recession fears. tivity.
buyers. The long-standing Still, his outlook for the hous- Pending sales is a measure
shortage of sales listings ing market remains solid. of home purchases that
and persistently high prices "Sales activity continues to are usually completed a
have blunted the benefits be weaker than expected, month or two later.q