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Saturday 4 February 2017 BUSINESS
A24

Banks lead stock surge as investors hope for regulation cuts

20,071.46. The Standard & percent, to $240.95. Mor-
Poor’s 500 index advanced gan Stanley gained $2.30,
16.57 points, or 0.7 percent, or 5.5 percent, to $44.43.
to 2,297.42. The Nasdaq Smaller banks, which could
composite picked up 30.57 find it easier to lend money
points, or 0.5 percent, to if regulations are cut, also
close at a record high of traded higher. Texas Capi-
5,666.77. tal Bancshares picked up
The Russell 2000 index of $2.85, or 3.4 percent, to
smaller-company stocks $86.10 and East West Ban-
climbed 20.41 points, or corp rose $2.26, or 4.5 per-
1.5 percent, to 1,377.84. cent, to $52.72.
Smaller, domestically-fo- U.S. employers added
cused companies may 227,000 jobs in January, ac-
have more to gain than cording to the Labor De-
their larger peers from fast- partment. That’s more than
er growth in the U.S. The last year’s average monthly
Russell made big gains at gain of 187,000. The unem-
the end of 2016 based on ployment rate ticked up to
those hopes. a low 4.8 percent from 4.7
On Friday Trump directed percent in December as
the Treasury Secretary to more people started look-
Trader Daniel Krieger, center, works on the floor of the New York Stock Exchange. Banks and other look for potential changes ing for work. That helped
financial companies made big gains Friday after President Donald Trump moved to scale back to the Dodd-Frank law, smaller companies and
regulations on the financial industry. which reshaped financial industrial stocks, both of
(AP Photo/Richard Drew) regulations after the 2008- which would benefit from
MARLEY JAY steps to reduce regula- “They’re going to benefit 09 financial crisis. The order faster economic growth.
AP Markets Writer tions, which could boost from not having all of this does not have any imme- Visa said shoppers stepped
NEW YORK (AP) — Banks profits for investment firms. onerous red tape,” said diate impact, but investors up their use of debit and
and other financial com- The Labor Department said Karyn Cavanaugh of Voya applauded its intent. credit cards in the latest
panies made big gains hiring sped up last month, Investment Strategies. Trump also signed a mem- quarter, and the payment
Friday after President Don- a positive sign for the “That’s why we see the orandum that delayed processing company also
ald Trump moved to scale economy. Small-company rallies every time they talk an Obama-era rule that benefited from its acquisi-
back regulations on the stocks, which stand to ben- about regulation.” requires financial profes- tion of Visa Europe. Its profit
financial industry. Other efit more than others from Cavanaugh said a reduc- sionals who charge com- and revenue were stronger
stocks also rose as investors stronger economic growth, tion in regulations could missions to put their clients’ than analysts expected,
were also pleased that em- make sharp gains. also help banks lend more interests first when giving and Visa’s stock jumped
ployers hired workers at a Financial companies have and speed up economic advice on retirement in- $3.78, or 4.6 percent, to
faster pace in January. made huge gains since growth, which could ben- vestments. $86.08.
Financial stocks made their Trump’s election, and his efit many other industries. JPMorgan Chase add- Online retail giant Amazon
biggest gains since shortly pledge to cut laws and The Dow Jones industrial ed $2.59, or 3.1 percent, traded lower as investors
after the presidential elec- rules that govern the indus- average jumped 186.55 to $87.18 and Goldman grew concerned about its
tion as Trump took his first try is a major reason. points, or 0.9 percent, to Sachs rose $10.54, or 4.6 sales.q
Macy’s shares up after being halted amid takeover rumor

A. D’INNOCENZIO under Saks Fifth Avenue
AP Retail Writer and Lord & Taylor as well
NEW YORK (AP) — A re- its namesake, is in prelimi-
ported overture by Saks nary stages of discussion
Fifth Avenue’s parent to with Macy’s that also in-
take over Macy’s Inc. un- clude a possible deal for
derscores how further con- the department store’s
solidation may be needed real estate. The report cites
to revive the department people familiar with the
store sector amid drastic matter.
changes in the retail land- The potential deal would
scape and consumer be- come as Hudson’s Bay
havior. has been on an acquisi-
Macy’s shares soared in tion binge for the past sev-
trading Friday, after being eral years. But Macy’s has
temporarily halted on the been shuttering stores as it
New York Stock Exchange tries to become more nim-
on a news report that Saks’ ble and compete better
owner has approached with online rivals like online
the department store leader Amazon.com. It an-
chain about a takeover. nounced earlier in January
The article, posted on The People carrying Macy’s shopping bags walk past the Macy’s flagship store in New York. A re- that it would close 68 stores
Wall Street Journal’s web- ported overture by Saks Fifth Avenue’s parent to take over Macy’s Inc. underscores how further after shuttering around 100
site, reported that Cana- consolidation may be needed to revive the department store sector amid drastic changes in the last year. It’s also been un-
dian chain Hudson’s Bay retail landscape and consumer behavior. der pressure to sell some of
Co., which operates stores (AP Photo/Mary Altaffer) its valuable real estate.q