Page 25 - ARUBA TODAY

BUSINESS Thursday 27 June 2019
A25

Stocks rise amid fresh hopes for a US-China trade deal

By ALEX VEIGA of smaller company stocks
Associated Press picked up 0.1%.
Technology companies led The market is coming off
stocks higher on Wall Street a three-day losing streak,
in early trading Wednes- though it is on track to end
day amid fresh optimism June with solid gains. The
among investors that the benchmark S&P 500 index
U.S. and China are mak- is about 1.1% below the re-
ing progress toward a deal cord high it set on Thursday.
to resolve their costly trade Major stock indexes in Eu-
war. U.S. Treasury Secretary rope were mostly lower.
Steven Mnuchin told CNBC ALL ABOUT TRADE: This
that a trade deal between week’s G-20 meeting in
the two nations was “about Osaka, Japan, is the first
90%” done during recent opportunity Trump and Xi
negotiations. President have had to thrash out the
Donald Trump and Chinese trade dispute face-to-face
President Xi Jinping are since Trump said he was
scheduled to meet at the preparing to target the
G-20 summit this weekend. $300 billion in Chinese im-
Meanwhile, a Bloomberg ports that he hasn’t already
report citing unnamed In this June 20, 2019, file photo trader Joseph Lawler works on the floor of the New York Stock hit with tariffs, extending
sources suggested the U.S. Exchange. them to everything China
is willing to hold off on im- Associated Press ships to the United States.
posing tariffs on an addi- from the tariffs could hurt prices fell, sending yields maker’s latest quarterly re- The two sides are in a stale-
tional $300 billion in Chi- global economic growth higher. When bond yields sults topped Wall Street’s mate after 11 rounds of
nese imports ahead of the and corporate profits. rise it helps banks’ ability expectations, but it also re- talks that have failed to
next round of trade talks. Chipmakers led the rally to charge higher interest ported weak sales trends in overcome U.S. concerns
The Trump administration in technology stocks early on loans. JPMorgan Chase North America. over China’s acquisition of
has already imposed 25% Wednesday after Micron gained 1.2% and Bank of KEEPING SCORE: The S&P American technology and
tariffs on $250 billion in Chi- Technology forecast im- America rose 1%. 500 index was up 0.2% as its massive trade surplus.
nese imports and China proved demand for smart- Health care and consumer of 10:28 a.m. Eastern Time. China denies forcing U.S.
has retaliated with tariffs on phone chips the rest of the staples stocks were among The Dow Jones Industrial companies to hand over
U.S. goods. year. Energy stocks also the biggest laggards. John- Average rose 51 points, or trade secrets and says the
The escalating trade dis- rose as the price of U.S. son & Johnson fell 1.8% and 0.2%, to 26,600. The Nasdaq surplus is much smaller than
pute remains the biggest crude oil climbed 2.8%. J.M. Smucker dropped composite, which is heav- it appears once the trade in
source of uncertainty loom- Hess gained 3.5% and Mar- 3.1%. ily weighted with technol- services and the value ex-
ing over the market. Inves- athon Petroleum rose 3%. General Mills slumped af- ogy stocks, gained 0.7% tracted by U.S. companies
tors are worried the fallout Banks gained as bond ter the packaged foods and the Russell 2000 index are taken into account. q

FedEx loses $2 billion, warns of headwinds in coming year

By DAVID KOENIG cense from the Commerce days a week. The compa-
Associated Press Department. ny plans to go seven days
DALLAS (AP) — FedEx Corp. In the fiscal fourth quarter, a week starting next Janu-
posted weak quarterly re- which ended May 31, Fe- ary. The unit’s income was
sults in its core express busi- dEx reported a loss of $1.97 flat despite 11% higher rev-
ness and warned Tuesday billion, compared with enue.
that its profit in the year profit of $1.13 billion a year “The quarter was a mixed
ahead will be hurt by slow- earlier. bag,” said Matt Arnold, an
ing growth in the world FedEx said that adjusted analyst with Edward Jones.
economy and the decision profit excluding various “Ground continues to per-
to drop a contract with re- charges was $5.01 per form well, freight continues
tail giant Amazon. share. While down from to perform well, but unfortu-
The delivery company re- $5.91 a year earlier, the nately on the international
ported a quarterly loss of results beat expectations. side the express business is
nearly $2 billion. However, In this July 27, 2017, shows a Federal Express employee makes The average estimate of 11 still under pressure — essen-
excluding an accounting a delivery at an AT&T store in Hialeah, Fla. analysts surveyed by Zacks tially no change from what
charge for retirement plans Associated Press Investment Research was we saw a quarter ago.”
and other items that the production. na. On Monday, the com- for $4.81 per share. For the year, FedEx, which is
company doesn’t expect The company announced pany sued the Commerce Revenue rose 3% to $17.81 based in Memphis, Tennes-
will repeat, the results were this month that it would not Department , seeking to billion, which met the ana- see, reported profit of $540
better than Wall Street ex- renew an airfreight-delivery stop it from enforcing ex- lysts’ forecasts. million on revenue of $69.69
pected. contract with Amazon that port rules that restrict ship- The company’s biggest billion.
FedEx started a new fiscal expires June 30. It did not ments to, among others, business, express, saw lower FedEx shares fell $4.92, or
year this month, and Chief disclose the value of that Chinese telecommunica- revenue from international 3.1%, to close Tuesday at
Financial Officer Alan Graf work, but said Amazon ac- tions-equipment maker priority packages, and the $155.98 before the release
said the company’s per- counted for less than 1.3% Huawei Technologies. Hua- unit’s operating income slid of the results. During ex-
formance, especially at of its revenue in 2018. wei was recently added to by 12% on a 1% dip in sales. tended trading after the
FedEx Express, is being hurt FedEx also finds itself in the a list of companies barred FedEx Ground ran into ris- financial results were re-
by continued weakness in middle of a trade dispute from receiving U.S. tech- ing costs as it shifted to a leased, the shares were up
global trade and industrial between the U.S. and Chi- nology without a special li- year-round schedule of six $1.05 to $157.03.q