Page 25 - ARUBA TODAY

BUSINESS Tuesday 25 June 2019
A25

Stocks start the week sideways ahead of trade talks

By DAMIAN J. TROISE American technology and
Associated Press its massive trade surplus.
NEW YORK (AP) — U.S. China denies forcing U.S.
stocks moved sideways in companies to hand over
midday trading Monday trade secrets and says the
on Wall Street after notch- surplus is much smaller than
ing their third straight week- it appears.
ly win. HIGH ROLLER:Caesars
Investors eased into trading surged 14.6% after Eldo-
ahead of a highly antici- rado Resorts said it will buy
pated meeting between the casino operator for
the U.S. and China’s lead- $17.3 billion in a cash-and-
ers later this week. The stock deal.
world’s two largest econo- The deal creates a casino
mies have been embroiled giant with about 60 casinos
in a trade war that has tak- and resorts in 16 states un-
en the market on a volatile der a single name. Caesars
roller-coaster ride this year has been struggling since
and Wall Street is hoping emerging from bankruptcy
for a deal. in 2017. Billionaire investor
Technology stocks did most Carl Icahn took an enor-
of the heavy lifting and mous stake in the company
acted as a counterweight and pushed for big chang-
for losses in the health care In this June 20, 2019, file photo traders gather at a post on the floor of the New York Stock Exchange es. Eldorado fell 10%.
and energy sectors. Micro- as they wait for the Slack Technologies IPO to begin trading. COSTLY TREATMENT: Phar-
soft and Apple both made Associated Press maceutical company Bris-
solid gains. Oracle and gene stumbled. Average rose 53 points, or pact on global economic tol-Myers Squibb fell 7% af-
Broadcom rose 1.4%. Energy companies were 0.2%, to 26,770. The Nasdaq growth sent the broader ter it said it would divest a
Companies that make also among the early losers. composite remained flat. market on a bumpy ride blockbuster drug in order to
consumer products gained Concho Resources fell 3.4% FOCUSING ON TRADE: Pres- during the second quarter complete its buyout of Cel-
momentum throughout the and Pioneer Natural Re- idents Donald Trump and as the tensions escalated. gene. Celgene fell 5.1 %
morning. Coca-Cola rose sources fell 2.8%. The sector Xi Jinping plan to meet at The S&P 500 reached a re- The company is trying to
1.1% and Tyson Foods rose remains volatile as oil prices the Group of 20 summit in cord high last week that gain Federal Trade Com-
2.3%. Financial compa- sway over concerns about Japan, which starts Friday. gave it the final push to mission approval for its $74
nies also made solid gains. economic growth and ris- Wall Street is once again recovering all of its losses billion buyout of Celgene
Goldman Sachs rose 1.2% ing tensions in the Middle hoping that the two sides from May. as it tries to beef up its port-
and Allstate rose 1.3%. East. can find a path to making The two sides are in a stale- folio of drugs. Bristol-Myers
Health care stocks led the KEEPING SCORE: The S&P a deal that will end their mate after 11 rounds of said it is willing to divest the
losers as pharmaceutical 500 index rose 0.1% as of trade war. talks that have failed to psoriasis treatment Otezla
giant Bristol-Myers Squibb 11:45 a.m. Eastern time. Uncertainty over the dis- overcome U.S. concerns as part of a push toward
and its buyout target Cel- The Dow Jones Industrial pute and its potential im- over China’s acquisition of regulatory approval.q

What the SEC’s new ‘best interest’ rule means for you

By SARAH SKIDMORE SELL interests ahead of that of by President Donald Trump
Associated Press their clients. They will also and defeated in federal
The SEC recently passed not be allowed to use the court with the help of some
new regulations it says will term “adviser” as part of in the financial industry.
ensure that brokers act in their name or title in deal- THE TIMING
their clients’ “best interest.” ing with retail investors. Firms have until June of
But what does that mean Investment advisers, on the 2020 to come into compli-
for you? other hand, were already ance with the rules.
THE RULE required to divulge their Consumers should become
Brokers and advisers must potential conflicts of inter- more diligent about read-
disclose information about est and put their clients’ ing and understanding the
fees, costs and potential interests above their own. paperwork they are given
conflicts of interest. The new rules don’t prohibit in the future, said Geoffrey
THE ISSUE conflicts of interest, they Brown, CEO of the National
Consumer advocates have just require that advisers Association of Personal Fi-
long argued for more rules In this Nov. 20, 2018, file photo an American flag flies outside disclose them. nancial Advisors, which op-
to protect Americans seek- New York Stock Exchange. THE CRITICS poses the new regulations.
ing advice and other help Associated Press Critics, such as AARP and “There is a lot of confu-
investing their money. They it is known, changes things cific products. Currently, the Consumer Federation sion,” Brown said. Brown
say investors lose billions of more for brokers than ad- they are only required to of America, say the new suspects there may be
dollars a year because of visers. make suggestions based rule doesn’t go far enough more clarification between
advice from brokers whose Brokers sell stocks, bonds, on what is “suitable” for and muddies the waters now and 2020 as experts
financial incentives are at mutual funds, annuities and their client, based on the for consumers with confus- wade through the lengthy
odds with their clients’ best other investments, which client’s age, goals, risk tol- ing paperwork. Critics also final rules. Some states may
interests. they may recommend to erance and other factors. say the rule is not as strong also take their own steps to
THE PROFESSIONALS clients. They often receive Under the new rules, bro- as the fiduciary rule, a pro- protect consumers, Brown
The “best interest” rule, as commissions for selling spe- kers cannot put their own posal that was opposed said.q