Page 24 - ARUBA TODAY

Thursday 16 March 2017 BUSINESS
A24

Stocks climb, led by energy companies, dividend payers Exxon applies for

STAN CHOE average rose 112.73 points, jumped on expectations yen late Tuesday. The production license
AP Business Writer or 0.5 percent, to 20,950.10. for Fed action, for example. euro rose to $1.0713 from of oil in Guyana
NEW YORK (AP) — Stocks The Nasdaq composite It climbed nearly a quarter $1.0632, and the British
clambered higher Wednes- picked up 43.23 points, or of a percentage point in a pound climbed to $1.2301 GEORGETOWN, Guyana
day for their biggest gain 0.7 percent, to 5,900.05. little more than two weeks from $1.2145. (AP) — American oil gi-
in two weeks and easily The Russell 2000 index of to 1.38 percent late Tues- “People got ahead of ant Exxon Mobil Corp. has
themselves,” Thooft said. asked Guyana’s govern-
“That’s a pretty big move ment for a production li-
off something that seems cense to let it start pump-
to be ‘This is what we told ing oil from the seabed by
you we were going to do.’” late 2019, though compa-
The drop in bond yields ny officials have said op-
shone a warm light on erations are likely to start in
stocks in industries known 2020.
for paying relatively big div- Guyana Geology and
idends. Lower bond yields Mines Commissioner New-
make the income provided ell Dennison on Wednes-
by dividends more attrac- day confirmed the ap-
tive, and real-estate invest- plication, saying it would
ment trusts in the S&P 500 be the first time the small
jumped 1.9 percent. Utilities South American country
rose 1.6 percent. has issued an oil and gas
The day’s biggest gains license.
came from energy stocks. Exxon Mobil said last year
Those in the S&P 500 that exploratory wells off
rose by 2.1 percent after Guyana discovered a
the price of oil climbed “world-class” reservoir that
Wednesday, the first time could hold up to 1.4 billion
that’s happened in more barrels of oil.

A screen on the floor of the New York Stock Exchange shows the closing number for the Dow than a week. A barrel of The discoveries add to
Jones industrial average, Wednesday, March 15, 2017. Stocks closed with solid gains after the benchmark U.S. crude rose a maritime rights dispute
Federal Reserve nudged interest rates higher and signaled that any further increases this year will $1.14 to settle at $48.86.
be gradual. The 2.4 percent jump was with Venezuela, which
(AP Photo/Richard Drew) the largest since January. also claims the area where
Brent crude, which is used they are located. The UN
absorbed the Federal Re- small-company stocks day. to price international oils, has given both nations until
serve’s latest increase in jumped 20.45 points, or 1.5 When the Fed said that it’s added 89 cents to $51.81 a year’s end to solve the dis-
interest rates, a move that percent, to 1,382.83. Gains sticking with its forecast for barrel in London. pute.
was widely expected. were widespread, and sev- three rate increases this The weaker dollar also Dennison said the com-
What was perhaps unex- en stocks rose on the New year, the two-year yield helped to lift prices for met- pany has also submitted
pected was the big drop York Stock Exchange for gave up nearly half of that als. Gold settled early in its general production plan
in bond yields and the dol- every one that fell. increase in just a few min- the afternoon at $1,200.70 alongside its application
lar’s value against other The Fed raised short-term in- utes. It later pared its loss per ounce, down $1.90. for a production permit.
currencies following the terest rates by a quarter of and sat at 1.29 percent But it climbed following The firm has so far drilled
Fed’s announcement. The a percentage point, its third late Wednesday. the Fed’s announcement five wells and is currently
central bank stressed that such move since the end of The yield on the 10-year and was trading at $1,221 completing work on a sixth.
it plans to move gradually 2015. The move was widely Treasury fell to 2.49 percent late Wednesday. Silver and Only one has come up dry
and stuck to its projection expected after various Fed from 2.60 percent late Tues- copper also rose following so far.
that it will raise rates a total officials gave speeches day, and the 30-year yield the announcement. “I can confirm that they
of three times this year. That telegraphing the increase fell to 3.11 percent from Natural gas rose 4 cents have applied for the per-
cooled speculation among and reports showed that 3.18 percent. Both remain to settle at $2.98 per 1,000 mit,” said Dennison, who
some investors that the Fed the economy continues higher than they were a cubic feet, heating oil rose indicated it would allow
could move more aggres- to strengthen and inflation few weeks ago, though. 2 cents to settle at $1.51 operations by late 2019.
sively. has picked up. The dollar’s value likewise per gallon and wholesale Exxon Mobil announced
The Standard & Poor’s 500 The data have been so sank as some traders got gasoline was virtually flat at on March 1 that “Guyana
index jumped 19.81 points, encouraging that some out of deals built on the $1.58 per gallon. startup is expected by
or 0.8 percent, to 2,385.26. investors began to specu- expectation of a more The Commerce Depart- 2020, less than five years
It had been up through late whether the Fed may aggressive Fed, said Nate ment said early Wednes- after the initial discovery
the day, and the gains raise rates more aggres- Thooft, senior portfolio day that retail sales inched well - a rare occurrence in
accelerated immediately sively. The yield on the manager at Manulife Asset up by 0.1 percent in Feb- the industry in terms of de-
after the Fed made its an- two-year Treasury note, Management. ruary, and it said sales in velopment time.”
nouncement. which is heavily influenced The dollar sank to 113.39 January were better than it Guyana, which relies heav-
The Dow Jones industrial by changes in Fed policy, Japanese yen from 114.72 previously believed. q ily on products like gold,
EU approves proposed AT&T purchase of Time Warner rice sugar, bauxite and tim-
ber, is scrambling to pre-
pare itself for oil produc-
BRUSSELS (AP) — The Eu- mission said Wednesday active in global telecom- It would bind the second- tion. Several other com-
ropean Union has given that there are no overlaps munications and digital largest U.S. wireless carrier panies, including Spanish-
its blessing to AT&T’s pro- between the companies’ entertainment, it only pro- with a media and enter- owned Repsol and Mid
posed $85 billion purchase activities in the European vides telecommunications tainment conglomerate Atlantic Oil and Gas, are
of Time Warner, saying that Economic Area, which in- services to business cus- that owns CNN, HBO, the also exploring Guyanese
it raises no competition cludes the 28-nation EU tomers in the EEA. “Harry Potter” franchise concessions near Exxon’s
concerns in Europe. and three other countries. The deal still needs ap- and pro basketball.q Stabroek Bloc. q
The EU’s executive Com- It noted that while AT&T is proval from U.S. regulators.