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BUSINESS Friday 2 december 2016
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Wells Fargo spliting Oil and banks take Dow to new highs; tech firms dive
chairman, CEO roles
after sales scandal MARLEY JAY second day after the coun- 19,191.93, its highest close make more money from
tries of OPEC agreed to trim on record. The Standard & lending.
AP Markets Writer
NEW YORK (AP) — Technol- oil production next year. Poor’s 500 index dropped Goldman Sachs jumped
KEN SWEET ogy companies plunged Karyn Cavanaugh, senior 7.73 points, or 0.4 percent, $7.34, or 3.3 percent, to
AP Business Writer $226.63 and JPMorgan
NEW YORK (AP) — Wells Chase picked up $1.62, or
Fargo said it will split the 2 percent, to $81.79. Gold-
jobs of chairman and CEO man is trading at its high-
and will make other major est price since December
changes to the composi- 2007.
tion of its board of directors Facebook skidded $3.32, or
in an effort to make the 2.8 percent, to $115.10 and
bank more accountable chipmaker Analog Devices
following a scandal over its dropped $5.23, or 7 per-
sales practices. cent, to $69.01. Microsoft
The bank said Thursday it lost $1.06, or 1.8 percent, to
was amending its corpo- $59.20.
rate bylaws to require that After a big gain Wednes-
separate people fill the job day, the dollar slipped to
of chairman and the job 114.04 yen from 114.22 yen.
of CEO. The chairman and The euro rose to $1.0645
vice chairman will have from $1.0599. In the last
to be independent direc- few weeks the dollar has
tors who don’t own shares reached a 13-year high
in the company, the bank compared to other cur-
said. Wells’ previous chief rencies. A strong dollar
executive, John Stumpf, hurts profits and sales for
held both the CEO and companies that do a lot
chairman jobs before he Traders work on the floor of the New York Stock Exchange. Technology companies plunged Thurs- of business overseas, and
abruptly retired in mid- day, and high-dividend stocks also took hefty losses as bond yields rose to their highest level in the technology companies
more than a year.
October. Stumpf was re- (AP Photo/Richard Drew) on the S&P 500 get almost
placed by Tim Sloan, and 60 percent of their revenue
Stephen Sanger became Thursday, and high-divi- market strategist for Voya to 2,191.08. The Nasdaq outside the U.S.
Wells’ independent chair- dend stocks also took hefty Investment Strategies, said composite fell 72.57 points, Oil prices rallied again and
man. losses as bond yields rose to a focus on President-elect or 1.4 percent, to 5,251.11. reached their highest level
“The board previously act- their highest level in more Donald Trump’s trade poli- Stock indexes set records since mid-October. Bench-
ed to elect an indepen- than a year. But more big cies might be hurting tech after the presidential elec- mark U.S. crude picked up
dent chairman to lead the gains for blue-chip banking stocks. On Thursday Trump tion last month, but lately $1.62, or 3.3 percent, to
board and we believe for- and oil stocks pulled the toured a Carrier factory they have wobbled as close at $51.06 a barrel in
malizing this structure is the Dow Jones industrial aver- in Indiana after announc- different industries were New York. Brent crude, the
right decision at this time age to a record high. ing the company will keep pulled in opposite direc- standard for pricing inter-
for the company and its Big names like Facebook some operations at the tions. Banks and industrial national oils, added $2.10,
investors, customers, and and Oracle fell as tech- facility instead of mov- and materials companies or 4.1 percent, to $53.94 a
team members,” Sanger nology companies took ing them to Mexico. He are rising while tech stocks barrel in London. Chevron
said in a prepared state- their biggest losses in two warned of consequences have weakened. gained $1.73, or 1.6 per-
ment. months. Rising bond yields for companies that send Bond prices continued to cent, to $113.29 and Phillips
Sanger further said that pushed income-seeking in- jobs out of the country. tumble, sending bench- 66 rose $1.90, or 2.3 per-
separating the chairman vestors away from real es- “If you’re going to bring mark yields higher. The cent, to $84.98.
and CEO roles, plus the in- tate and utility companies. jobs back to America and yield on the 10-year Trea- The price of oil soared 9
dependent directors, “will Health care stocks also make stuff here, tech is sury note rose to 2.44 per- percent Wednesday af-
enhance the board’s in- slumped. going to be pretty vulner- cent from 2.38 percent, its ter the members of OPEC,
dependence and its over- Banks continued to soar able,” she said. “If there’s highest since July 2015. That which collectively produce
sight of the company’s as investors expect them going to be a trade war, sent bank stocks higher be- more than one-third of
management.” to make bigger profits on tech is pretty vulnerable.” cause higher bond yields the world’s oil, agreed to
In September, the San loans as interest rates rise. The Dow gained 68.35 are linked to higher interest a small cut in production
Francisco-based bank was Oil prices climbed for the points, or 0.4 percent, to rates, which allow banks to starting in January. q
fined $185 million in an
agreement with regulators Starbucks CEO Schultz to step down, focus on innovation
who said bank employees
may have opened up to 2 NEW YORK (AP) — Star- ecutive as of April 3. mobile app and worked to Shares of Starbucks slid 3.6
million customer accounts bucks says CEO Howard Schultz, currently chairman expand food and bever- percent to $56.44 in after-
fraudulently in order to Schultz, who transformed and CEO, will become ex- age offerings. hours trading.
meet ambitious sales goals. the chain into a global ecutive chairman on that The company’s sales have Johnson, 56, will take
Federal and local authori- coffee brand, is stepping date to focus on innova- grown impressively in the charge of the company’s
ties alleged that Wells Far- down from that role at the tion and social impact ac- U.S., although they’ve global business and opera-
go employees opened coffee chain that he joined tivities, among other things. slowed more recently. tions.
bank and credit card ac- more than 30 years ago. Schultz, 63, is credited with During an interview with He joined the Starbucks
counts, moved money be- The Seattle-based com- turning around the coffee CNN in September, Schultz board in 2009 and has
tween those accounts and pany announced Thursday chain’s fortunes since re- publicly endorsed Demo- spent years at technology
even created fake email that Kevin Johnson, who turning as its CEO in 2008. cratic presidential nominee companies including 16
addresses to sign custom- was named president and He has overseen the expan- Hillary Clinton, and did not years with Microsoft and
ers up for online banking chief operating officer last sion of the company’s pop- rule out running for office at five as Juniper Networks
— all without customer au- year, will become chief ex- ular loyalty program and some point. CEO. q
thorization. q