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Tuesday 13 december 2016 BUSINESS
A24

Oil spurt drives Dow to record despite broad losses Federal budget

STAN CHOE growth. level since autumn 2014 rise $1.98, or 2.2 percent, to deficit jumps to
AP Business Writer “Unless and until we see before settling back at 2.47 $90.98. Chevron rose $1.34, $136.7B in Nov.
NEW YORK (AP) — Stocks hard evidence of the econ- percent on Monday, where or 1.2 percent, to $117.15,
mostly fell on Monday, but omy picking up, we’re go- it was on late Friday. and ConocoPhillips rose M. CRUTSINGER
a spurt in oil prices helped ing to take these profits as When the Federal Reserve 61 cents, or 1.2 percent, to AP Economics Writer
push the energy sector a gift and pocket them,” wraps up its two-day policy $51.38. WASHINGTON (AP) — The
higher and the Dow Jones federal government’s defi-
industrial average to an- cit jumped sharply in No-
other record. vember but for the first two
The Dow rose 39.58 points, months of the budget year
or 0.2 percent, to extend is running 10 percent lower
its record set on Friday. than a year ago.
The Standard & Poor’s 500 The Treasury Department
index, which is the bench- said Monday that the defi-
mark for many more inves- cit for November totaled
tors than the Dow, pulled $136.7 billion, compared to
back from its own record, a deficit of $44.2 billion in
also set on Friday, and October.
dipped 2.57 points, or 0.1 For the first two months of
percent, to 2,256.96. the new 2017 budget year,
The Dow was able to make the deficit totals $180.8 bil-
the lone gain among the lion, 10 percent below the
big three indexes partly same period a year ago.
thanks to Exxon Mobil and However, that improve-
Chevron. They rose with oil, ment mainly reflects calen-
which touched its highest dar quirks that moved ben-
price since the summer of efit payments from Octo-
2015 after OPEC persuad- ber back into September,
ed Russia and 10 other oil- the final month of the 2016
producing nations to an- Sallie Mae Chairman and CEO Raymond Quinlan, center, attends the opening bell ceremony budget year.
nounce production cuts with guests and employees at the Nasdaq MarketSite, Monday, Dec. 12, 2016, in New York. The The deficit for all of 2016
over the weekend. company, which offers private education loans, is headquartered in Newark, Del. totaled $587.3 billion, a 34
Energy stocks in the S&P (AP Photo/Mark Lennihan) percent spike from the pre-
500 rose 0.7 percent, and vious year. And the Con-
they were among the six says Rich Weiss, senior port- meeting on Wednesday, The biggest loss in the S&P gressional Budget Office is
sectors to rise of the 11 that folio manager at American investors almost universally 500 came from Alexion forecasting that the deficit
make up the index. Century. Mutual funds that expect it to raise short-term Pharmaceuticals, which will worsen further this year.
Still, nine stocks fell on the he oversees have been interest rates for just the dropped $16.99, or 12.9 The CBO projects the defi-
New York Stock Exchange paring back their stock in- second time in a decade. percent, to $115.08 after cit will increase by 0.5 per-
for every five that rose, and vestments in recent days The central bank has held the company named an cent to $594 billion and
the day’s loss marked the and weeks as the price interest rates at close to interim CEO and a new keep rising through the
end of a six-day winning tags for them have shot zero since the Great Re- chief financial officer. The next decade, hitting $1
streak for the S&P 500, its higher. cession in hopes of driving biopharmaceutical com- trillion in 2024. The CBO is
longest such run since June Donald Trump’s surprise economic growth, though pany is in the midst of an projecting deficits will total
2014. presidential election vic- the low rates have also investigation into its sales $8.6 trillion over the next
Some investors say they’re tory has also driven expec- squeezed savers looking practices. decade if current law cov-
taking a more cautious, tations for inflation higher, for income from bank ac- Viacom had the second- ering taxes and entitlement
wait-and-see approach which have helped to counts and bonds. biggest decline in the in- remain in effect. President-
following the market’s drive bond yields upward. The price of U.S. bench- dex. The media company, elect Donald Trump during
strong run over the last Inflation is one of bond in- mark crude rose $1.33, or which owns Paramount, the campaign proposed
month. The S&P 500 has vestors’ biggest fears, and 2.6 percent, to settle at Comedy Central and MTV, significant cuts in taxes
climbed 5.4 percent since they’re demanding higher $52.83 per barrel in New and fell $3.63, or 9.4 per- and increased spending
the presidential election yields in order to compen- York. The price of Brent cent, to $34.99. on defense and infrastruc-
on expectations that pro- sate for the perceived in- crude, the international National Amusements, ture which outside analysts
posed tax cuts will lead to crease in risk. standard, rose $1.36, or 2.5 which controls both Via- have estimated will add
higher profits for business- The yield on the 10-year percent, to close at $55.69 com and CBS, said it’s no trillions of dollars to current
es and less regulation may Treasury note rose above a barrel in London. longer looking to combine projected deficits if Con-
create stronger economic 2.50 percent to its highest That helped Exxon Mobil to the two.q gress goes along with the
2 charged in securities fraud plot netting $26M illegally proposals without seeking
offsetting deficit savings.
The government’s budget
NEWARK, N.J. (AP) — Two nounced. The Securities then sold securities they listed in the names of family year begins on Oct. 1 and
men were charged Mon- and Exchange Commis- owned at inflated prices, members or in the names ends on Sept. 30. Before
day with running a secu- sion also filed civil charges investigators said. They of people not involved leaving town, Congress
rities fraud scheme that against the men. used at least one account in an attempt by Taub to last week passed a second
investigators say netted Attorneys listed for the men to make multiple small or- conceal the scheme, in- stop-gap funding bill which
them more than $26 million did not immediately return ders to get a stock to go vestigators said. will finance the govern-
in illegal profits. calls seeking comment on up or down and then used The charges carry a maxi- ment in the current budget
Joseph Taub, 37, of Clif- their behalf. another account to buy mum penalty of five years year through April, allow-
ton, and 21-year-old Ela- The men used dozens of and sell larger quantities of in prison plus fines. The SEC ing the new Trump admin-
zar Shmalo, 21, of Passaic, brokerage accounts to stock to make money, in- filing seeks a return of mon- istration to take office and
were arrested Monday, drive up the cost of $10 bil- vestigators said. ey made illegally plus inter- submit its first budget to
federal prosecutors an- lion worth of securities and Some of the accounts were est and penalties.q Congress.q