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BUSINESS Thursday 29 augusT 2019
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Banks help drive US stocks broadly higher after wobbly start

By ALEX VEIGA bonds. The yield in the
Associated Press 10-year Treasury fell be-
Banks and energy com- low that of the two-year
panies helped power U.S. Treasury on Tuesday and
stocks broadly higher in remained lower Wednes-
midday trading Wednes- day. The 10-year yield slid
day as the market clawed to 1.46%, down from 1.49%
back some of its losses from late Tuesday. The two-year
a day earlier. was at 1.50%, down from
Financial sector stocks ac- 1.52% a day earlier.
counted for much of the When the yield curve in-
rally, which reversed an verted earlier this month for
early slide. Big banks were the first time since 2007, it
among the sector's gainers. led to a broad market sell-
Wells Fargo rose 2% and off.
Bank of America added Still, while the inversion in
1.7%. the yield curve has been a
Energy stocks notched good indicator of a com-
the biggest overall gain as ing recession in the past,
crude oil prices climbed other factors may be skew-
1.8% after the government ing what's happening in the
reported that stockpiles U.S. bond market. Many
declined from last week. other countries' long-term
Cimarex Energy jumped In this Aug. 21, 2019, file photo specialist Anthony Matesic, center, works with traders at his post on bonds now carry negative
9.7%. the floor of the New York Stock Exchange. yields, making U.S. Trea-
Both sectors have taken the Associated Press surys more attractive. That's
heaviest losses this month helping to fuel the surge in
as fear that the U.S. trade its for lenders. pockets of opportunity in day after they fell sharp- demand for bonds and the
war with China is ham- Banks surged Wednesday sectors that have been ly. The Russell 2000 index ensuing drop in yields.
pering global economic even as bond yields con- hurt by the 10-year yield gained 1.4%. This means market watch-
growth roiled markets. tinued to move lower as in- coming down," said Quincy The market is on track to ers trying to gauge the like-
Falling oil prices, which vestors shifted more money Krosby, chief market strate- end the week with a gain lihood of a recession will
tend to decline with the into government bonds. gist at Prudential Financial. after having declined the have to rely more on eco-
perception that there will The trend continued to The S&P 500 was up 0.5% as past four weeks in a row. nomic data.
be less economic growth, drive long-term bond yields of 12:40 p.m. Eastern Time. Uncertainty over the U.S.- Still, much of the market's
can weigh on energy further below short-term The Dow Jones Industrial China trade conflict and action has been a reaction
stocks. Falling bond yields, ones. The so-called inver- Average rose 172 points, or it impact on corporate in recent weeks to head-
meanwhile, have weighed sion of the U.S. yield curve 0.7%, to 25,950. profits has weighed on the lines on trade. Last week,
on banks. The 10-year Trea- is a rare phenomenon that The Nasdaq, which is heav- market this month. The S&P the trade conflict esca-
sury note is a benchmark has correctly predicted ily weighted with technol- 500 is on track for its second lated again with Washing-
interest rates on mortgages previous recessions. ogy stocks, recovered from monthly drop this year. ton and Beijing threatening
and other consumer loans, "You're seeing investors an early stumble and was Investors' anxiety has been new tariffs on each other's
so when that yield declines, hedge their bets, but also up 0.2%. Investors favored visible in the surge in de- goods, triggering a sharp
it translates into lower prof- take advantage of the smaller company stocks a mand for U.S. government sell-off in global markets. q
Not getting paid? Tips to help businesses collect on bills

By JOYCE M. ROSENBERG tington, New York. pay, an owner should fol-
NEW YORK (AP) — Custom- — Do some due diligence low up in a timely manner.
ers who pay late or don't on customers. Before Some owners send emails
ever pay are a problem agreeing to work with or seven days after payment
for any company, but par- sell to a customer, doing a was due. If payment still
ticularly for small business credit check or research- isn't made, Eckstein recom-
owners who lose time and ing them online can help mends following up once a
money pursuing the money a business to avoid pay- week; he notes that there
they're owed. Some tips to ment problems. It's particu- are apps and software pro-
help owners be sure they larly important when large grams that make sending
get paid: amounts of money are at these reminders easier.
— Use written contracts that stake. — If an owner wants to
spell out payment terms. — Get a deposit or pay- keep a customer who's a
Contracts serve two major ment up front. Becky late payer, a mix of firmness
purposes, putting custom- Beach, a website designer and friendliness will help.
ers on notice about when in Arlington, Texas, asks cli- — Be ready to negotiate if In this April 4, 2018 photo provided Anvil Media, Kent Lewis
and how they're supposed ents for half her fee before that's the best way to get works at his office at Anvil Media in Portland, Ore.
to pay. And if an owner she starts work. She formu- at least partial payment. Associated Press
needs to take a non-payer lated that policy after hav- Marsha Kelly, a consultant
to court, the contract will ing to chase after custom- who has also had a career certificates to restaurants Both alternatives carry ex-
be evidence that the cus- ers — even visiting them in as a manufacturer, worked and hotels who were her penses that will reduce the
tomer agreed to the terms, person to collect late pay- out payment plans with customers. amount of money an own-
says Michael Eckstein, an ments. some customers, and she — Use collection agencies er can collect, sometimes
accountant based in Hun- — If a customer doesn't was also willing to take gift and lawsuits as a last resort. by half or more.q