Page 25 - ARUBA TODAY

BUSINESS Friday 17 august 2018
A25

US stocks climb ahead of China trade talks; Walmart surges

By MARLEY JAY ed in the first quarter.
Associated Press The stock jumped 10 per-
NEW YORK (AP) — U.S. cent to $99.24, which
stocks are surging Thursday wiped out its losses from
as China and the U.S. pre- earlier this year.
pare to hold their first trade Other retailers and con-
discussions in months, a po- sumer goods companies
tential sign of progress to- also edged higher. Target
ward ending the trade war added 1.6 percent to $82
between them. Walmart and Procter & Gamble rose
is surging after the retailer 1.7 percent to $83.67. Am-
said its sales climbed in sec- azon climbed 1 percent to
ond quarter. Metals prices $1,901.21.
rose sharply, a day after a SOFTWARE SURGE: Syman-
big drop, and the price of tec jumped 7.1 percent
crude oil moved higher. to $19.88 after the activist
KEEPING SCORE: The S&P investment firm Starboard
500 index climbed 28 points, Value disclosed a 5.8 per-
or 1 percent, to 2,846 as of cent stake in the company
12:35 p.m. Eastern time. The and said it plans to nomi-
Dow Jones Industrial Aver- nate five directors for spots
age jumped 401 points, or on Symantec’s board of di-
1.6 percent, to 25,563 as rectors.
Walmart and Boeing made Symantec said it has been
big gains. The Nasdaq talking to Starboard for the
composite rose 65 points, In this April 26, 2018, file photo, Vincent Pepe enjoys some fresh air outside the New York Stock past several weeks and is
or 0.8 percent, to 7,839. Exchange where he works trading cotton shares for VLM Commodities in the Financial District in evaluating the candidates
The Russell 2000 index of New York. it nominated.
smaller-company stocks Associated Press DEPARTMENT STORES
added 18 points, or 1.1 per- cy crisis, then rebounded the world’s two largest Those taxes are set to rise DUMPED: J.C. Penney tum-
cent to 1,689. Tuesday only to fall again economies. The countries next week, and both coun- bled 24.7 percent to $1.82
It’s the latest wild swing for Wednesday on rising con- are in conflict over tech- tries have threatened even after it took a bigger loss
stocks. The S&P 500 is on cerns about China’s eco- nology policy and China’s larger increases. than analysts expected
track for its biggest gain nomic growth. trade surplus with the U.S. WOW FOR WALMART: and reported weaker sales.
since June 1 just a day after TRADE HOPES: China will The two sides haven’t held Walmart posted some of its The chain also cut its fore-
its biggest loss in six weeks. send a trade envoy to talks since early June. After strongest sales growth in a casts for the year again.
Stocks slumped Friday and Washington in late August those talks, both countries decade and its online rev- Dillard’s dropped 14.9 per-
Monday as investors wor- in a new attempt to end put taxes on $34 billion in enue grew 40 percent, a cent to $70.63 after its re-
ried about Turkey’s curren- the trade dispute between each other’s imports. faster pace than it report- port. q

Why markets are worried about suddenly cold Turkey

By STAN CHOE ing markets and cause a markets in search of high- terest rates. Emerging-mar- vestment officer for Com-
Associated Press cascading wave of losses er returns. Many analysts ket economies broadly are monwealth Financial
NEW YORK (AP) — Why are as investors pull out of oth- along Wall Street, though, also in much better shape Network.q
investors around the world er countries that borrow say they don’t expect an- than 20 years ago, with
so worried about Turkey’s heavily in dollars and are other Asian financial crisis. stronger currency reserves,
economy, when it’s smaller dependent on foreign in- Turkey has borrowed much say strategists at Wells Far-
than Florida’s? Because of vestors. Argentina? Brazil? more in foreign currencies go Investment Institute.
the possibility that some- South Africa? than any other country, as “Turkey is both more ex-
body bigger will be next. Such a thing has hap- a percentage of its econ- posed and less able to do
Investors have been pull- pened before. A financial omy, and investors ques- something about it than
ing out of Turkey’s markets, crisis that began in 1997 tion how much authority its any other country,” says
sending its stock market after Thailand devalued its central bank has to raise in- Brad McMillan, chief in-
and currency plunging. currency eventually sent
That’s making debt that markets reeling across the
Turkish companies owe in region in what became
dollar terms even more ex- known as the Asian finan-
pensive to pay back, which cial crisis. Stoking the con-
only further weakens the cerns is the rising U.S. dollar
country’s financial system. and a Federal Reserve that
Turkish companies need has pledged to continue
to pay close to 5.80 lira for raising short-term interest
each $1 of debt that they rates. Such moves have
owe, for example, up from historically coincided with
3.79 lira at the start of the pain for emerging market
year. The big fear, though, stocks. When U.S. rates are
is that the distress could higher, investors feel less
spill over into other emerg- need to head to emerging