Page 25 - ARUBA TODAY

BUSINESS Wednesday 25 september 2019
A25

Weak consumer confidence pulls stocks lower

By DAMIAN J. TROISE reported that its consumer
Associated Press confidence index fell to
NEW YORK (AP) — U.S. 125.1 in September from a
stocks fell in midday trading revised reading of 134.2 in
Tuesday as a weak con- August. The measure is im-
sumer confidence report portant because consum-
smothered investor confi- ers have been the key sup-
dence ahead of upcom- port for the U.S. economic
ing U.S.-China trade nego- expansion even as the
tiations. The market initially trade war hurts manufac-
sprang forward following turing.
U.S. Treasury Secretary Ste- STOCKS LOSING STEAM: The
ven Mnuchin's confirmation market has become weak-
that trade negotiations will er as September nears its
resume the week of Oct.7. end. Stocks are on track
Stocks quickly pulled back for another weekly loss as
however after a report investor ease up following
showed that consumer weeks of gains.
confidence fell sharply in The S&P 500 notched a
September, in large part 2.8% gain the first week of
because of the economi- September, but then pulled
cally damaging trade war back to a 1.8% and 1% gain
and uncertainty over its the following weeks. It fell
resolution. In this Sept. 18, 2019, file photo trader James Denaro works at the New York Stock Exchange. 0.5% last week and is head-
Technology stocks reversed Associated Press ed for a slight loss so far this
course from their opening tors moved higher as they bank's ability to raise inter- European stocks were week. The U.S.-China trade
and led the decline by mid- are typically considered est rates on loans. mixed. A slowdown in eco- war and the uncertainty it
day. Chipmaker Intel fell safer places to shift money KEEPING SCORE: The S&P nomic growth and Britain's is producing has been the
1.2% and Qualcomm fell when economic growth is 500 index fell 0.3% as of planned Oct. 31 exit from main cause of concern for
1.7%. The sector is particu- uncertain. noon Eastern time. The the European Union con- investors. Both sides have
larly sensitive to trade war Bonds rose and pushed Dow Jones Industrial Aver- tinue weighing on inves- pulled back somewhat re-
developments as many yields lower in another sign age fell 38 points, or 0.1%, tors. The Ifo institute's latest cently from a series of es-
companies rely on China that investors were becom- to 26,914 The Nasdaq fell report shows that German calating tariffs and other
for sales and supply chains. ing more cautious follow- 0.8%. business confidence has measures. Still, investors are
Energy stocks were among ing the weak consumer OVERSEAS: Stocks in Asia picked up slightly after a cautious, considering that
the biggest losers as crude confidence data. The edged higher. China's cen- five-month decline, but previous negotiations have
oil prices dipped. Schlum- yield on the 10-year Trea- tral bank governor said managers are more pes- failed to produce a deal.
berger fell 1.2% and Halli- sury slipped to 1.66% from policy will stay "stable and simistic about their outlook BUSTED TIRE: AutoZone fell
burton fell 2.7%. 1.7% late Monday. Banks, healthy," suggesting there for the next half-year. 4.4% after the auto parts re-
Investors shifted money into including Citigroup, slid are no plans to cut interest LACKING CONFIDENCE: tailer's fiscal fourth quarter
consumer product makers on the lower bond yields. rates to help stimulate eco- The Conference Board, a sales fell shy of Wall Street
and utilities. Both those sec- The lower yields hamper a nomic growth. business research group, forecasts.q
German business survey does little to dispel recession fears

than economists' forecast riod and is considered likely by the day," he wrote in a
of a rise to 94.5 and due en- to shrink again in the cur- note. Germany publishes
tirely to managers' brighter rent quarter, putting it in a growth data for the third
assessment of their current technical recession. quarter on Nov. 14.q
situation. Their expecta- Carsten Brzeski, chief econ-
tions for the next six months omist at ING Germany
unexpectedly worsened. bank, said the result was "a
The survey is based on re- breather but no relief."
sponses from some 9,000 "The likelihood of another
firms in Germany, Europe's contraction of the German
biggest economy. economy in the third quar-
The economy contracted ter and hence a technical
slightly in the April-June pe- recession increases almost

In this Thursday, May 16, 2019 photo, containers are stored in the
free harbor in Bremerhaven, Germany.
Associated Press
By DAVID McHUGH lysts said the data did little
GEIR MOULSON to dispel fears Germany
Associated Press has entered a shallow re-
BERLIN (AP) — German cession.
business confidence has The Ifo institute said Tues-
picked up slightly after a day that its monthly confi-
five-month decline, but dence index edged up to
managers are more pes- 94.6 points in September
simistic about their outlook from 94.3 in August.
for the next half-year. Ana- That was marginally better