Page 25 - aruba today

BUSINESS Friday 24 February 2017
A25

Stocks end mixed as investors seek safety; industrials slide

MARLEY JAY percent to $2.64 a pound,
AP Markets Writer its biggest one-day decline
NEW YORK (AP) — Stocks in more than a year. Cop-
wobbled Thursday as inves- per is used in numerous
tors changed course and construction projects, so its
tempered their expecta- price has jumped recently.
tions for faster economic Companies that make ba-
growth. Industrial compa- sic materials also fell, and
nies, which have surged U.S. Steel lost $3.18, or 7.9
over the last few months, percent, to $37.31.
finished lower as Wall Street Bond prices rose. The yield
focused on gold, bonds, on the 10-year Treasury
and companies that pay note fell to 2.37 percent
big dividends. from 2.42 percent.
Construction equipment, That helped companies
transportation and metals that pay big dividends,
companies skidded and like utilities, real estate in-
small-company stocks, vestment trusts and phone
which are more sensitive companies. Electric-
to changes in economic ity company FirstEnergy
growth, also slumped. picked up 60 cents, or 1.9
Technology companies fell percent, to $31.39. Realty
for the first time in Febru- Income, which owns prop-
ary. The biggest gains went Trader Joseph Lawler, right, works on the floor of the New York Stock Exchange, Thursday, Feb. 23, erties used by retailers like
to utilities, real estate in- 2017. Stocks wobbled Thursday as investors changed course and tempered their expectations for drugstores and discount
vestment trusts, and other faster economic growth. (AP Photo/Richard Drew) stores, gained $1.72, or 2.8
companies that pay hefty percent, to $62.86.
dividends. Despite all that, speeding up economic lot of these initiatives.” the presidential election. In another sign investors
the Dow Jones industrial growth, along with tax cuts The Dow added 34.72 They’ve made big gains were seeking some refuge,
average, which tracks 30 and reduced regulations. points, or 0.2 percent, to since November as inves- gold jumped $18.10, or 1.5
large U.S. stocks, rose for But Jeff Kravetz, regional 20,810.32. The Standard & tors expect the Trump ad- percent, to $1,251.40 an
the 10th day in a row. investment strategist at Poor’s 500 index rose 0.99 ministration and Republi- ounce and silver rose 17
Industrial companies have U.S. Bank Wealth Manage- points to 2,363.81. The Nas- can Congress to ramp up cents to $18.12 an ounce.
made big gains since No- ment, said it might take a daq composite lost 25.12 spending on infrastructure. L Brands, the owner of Vic-
vember as investors expect while before any bills are in- points, or 0.4 percent, to That optimism faded a bit toria’s Secret and Bath &
the Trump administration troduced or become law. 5,835.51. The Russell 2000 on Thursday. Construction Body Works, tumbled after
and Republican Congress “They’re all positive initia- index of smaller-company equipment maker Cater- it said February sales have
to ramp up spending on in- tives for the economy but stocks slid 9.23 points, or 0.7 pillar gave up $2.65, or 2.7 been weak, especially at
frastructure. That optimism to get any of these done is percent, to 1,394.62. percent, to $95.55, its big- Victoria’s Secret. The com-
faded a bit on Thursday. not something we can get Industrial companies de- gest loss since September. pany decided to stop sell-
An infrastructure spending done in a few months,” he clined for the second day United Rentals shed $7.16, ing swimwear last year and
bill is one of the adminis- said. “We may have gotten in a row, and took some or 5.6 percent, to $120.90. said sales at older stores
tration’s key proposals for ahead of ourselves with a of their biggest losses since The price of copper fell 3.3 have dropped sharply. q
Mnuchin says goal is to pass US tax reform by August

MARTIN CRUTSINGER on middle income tax cuts, cession ended in mid-2009. elements of the program. States would pay a new 20
AP Economics Writer simplification and making “We have underperformed GOP lawmakers in the Sen- percent tax on the profits
WASHINGTON (AP) — (the U.S.) business tax com- where we need to be,” ate have expressed oppo- from those sales. But if the
Treasury Secretary Steven petitive with the rest of the Mnuchin said. “We believe sition to a House proposal company exports its prod-
Mnuchin said Thursday the world, which has been a we can be competitive to replace the current 35 ucts, the profits from those
administration is commit- big problem.” and get back to sustain- percent tax on corporate exports would not be taxed
ted to getting major tax He said implementation able growth of 3 percent or profits with a border adjust- by the United states. How-
reform legislation through of Trump’s economic pro- more.” ment tax. ever, foreign companies
Congress by August. He gram including tax cuts The GDP grew by just 1.6 Under the House propos- that import goods into the
predicted that President and deregulation would percent last year, and al, American companies United States would have
Donald Trump’s economic make growth in a range of many forecasters are pre- that produce and sell their to pay the 20 percent
proposals will be able to 3 percent to 3.5 percent dicting growth this year at products in the United tax.q
boost growth significantly “very achievable.” an only slightly better pace
to annual rates above 3 During the campaign, can- of 2 percent to 2.5 percent.
percent. didate Trump had set a Mnuchin said it would take
Mnuchin said that tax re- goal of achieving growth, time for Trump’s economic
form is the administration’s as measured by the gross program to translate to
top economic priority and domestic product, of 4 per- faster growth. But he said
the goal is to have a mea- cent or better. The country positive effects would be
sure approved by the time has struggled through the realized by next year.
Congress takes its August weakest recovery in the Mnuchin’s prediction of an
recess. post-World War II period in August passage of a tax
“We are committed to pass terms of growth, with GDP plan could prove optimis-
tax reform,” Mnuchin said averaging annual gains of tic given that House and
in an interview on CNBC. just above 2 percent in the Senate Republicans seem
“It’s going to be focused seven years since the re- sharply divided over key