Page 25 - aruba-today-20181110

BUSINESS Saturday 10 November 2018
A25

Stocks skid as oil plunge continues; tech sector also falls

By MARLEY JAY rest of the market over the
Associated Press last few months. Over the
NEW YORK (AP) — U.S. last 30 days, the S&P 500
stocks are falling Friday as index of energy compa-
technology and internet nies has fallen 12 percent,
companies take steep loss- while the broader S&P 500
es. is down about 3 percent.
Energy companies are also Natural gas prices jumped
lower as crude oil heads for 6 percent to $3.76 per 1,000
its 10th drop in a row. The cubic feet. That helped
price of oil has been falling gas companies stem their
steadily since early Octo- losses.
ber and is now trading at YELP OF PAIN: Online re-
its lowest price since April, views company Yelp nose-
causing steep losses for en- dived after it posted weak
ergy companies in recent third-quarter revenue and
weeks. its forecast for the fourth
Stocks have fallen over the quarter also fell short of
last two days but are still Wall Street's estimates. The
on track for strong weekly company said part of the
gains. problem is an advertising
Bond prices rose, sending model that is intended to
yields lower. Specialist James Denaro works on the floor of the New York Stock Exchange, Friday, Nov. 9, 2018. encourage advertisers to
KEEPING SCORE: The S&P Associated Press try the site without signing
500 index dropped 31 a long-term contract. Yelp
points, or 1.1 percent, to 500 is still up 1.9 percent this and Take-Two Interactive After peaking at $76.41 a said that has made its re-
2,775 as of noon Eastern week. It rose 2.4 percent lost 5.8 percent to $112.20. barrel in early October, sults more sensitive to short-
time. The Dow Jones Indus- last week but would need Other technology and in- near a four-year high, U.S. term problems. Its stock fell
trial Average fell 227 points, to gain another 5.6 percent ternet companies also crude has tumbled 21 28.5 percent to $31.09.
or 0.9 percent, to 25,965. to reach the all-time high it turned lower. Apple fell percent to its lowest price AVENGERS ASSEMBLE ... A
The Nasdaq composite fell set on Sept. 20. 2.4 percent to $203.39 and since March. Brent crude, PILE OF CASH: Walt Disney's
136 points, or 1.8 percent, GAME OVER? Video game Google's parent company used to price international net earnings were better
to 7,393. The Russell 2000 maker Activision Blizzard Alphabet shed 1.9 percent oils, has fared almost as than expected, as the en-
index of smaller companies tumbled after its forecast to $1,073. Amazon lost 2 badly. On Friday it declined tertainment giant raked in
gave up 27 points, or 1.7 for the critical holiday sea- percent to $1,719. 1 percent to $69.91 a barrel revenue from movies in-
percent, to 1,551. son fell short of analysts' OIL SKID: Benchmark U.S. in London. cluding "Avengers: Infinity
Even after falling on Thurs- projections. The stock fell crude lost 1.1 percent to Energy companies have War," ''Incredibles 2" and
day and Friday, the S&P 10.8 percent to $56.04, $60.04 a barrel in New York. done far worse than the the "Ant-Man" sequel. q

US wholesale prices jump 0.6 percent,

most in 6 years

By CHRISTOPHER RUGABER inflation pressures are most- But businesses could also
Associated Press ly in check. The year-over- invest in more machinery
WASHINGTON (AP) — U.S. year price increase is lower and software to make their
wholesale prices rose by than it was in the summer, employees more efficient,
the most in six years last when it topped 3 percent. which would enable them
month, led higher by more And oil prices declined in to pay more without raising
expensive gas, food, and October, which will likely to prices.
chemicals. lower gas costs in the com- Fed policymakers finished
The Labor Department said ing months. a two-day meeting Thurs- In this Sept, 17, 2018, file photo tomatoes go through a washing
Friday that the producer The Federal Reserve is day without changing the process at the Los Gatos Tomato Products plant in Huron, Calif.
price index — which mea- keeping a close eye on short-term interest rate they Associated Press
sures price increases be- price changes as it moni- control.
fore they reach the con- tors the economy for signs But most economists ex- September from a year
sumer — leapt 0.6 percent of overheating. The unem- pect the Fed will hike short- earlier.
in October, after a smaller ployment rate is at a five- term rates for a fourth time Friday's report showed that
0.2 percent rise in Septem- decade low of 3.7 percent this year when it meets next wholesale gas prices rose
ber. Producer prices in- and companies are raising in December. The Fed has 7.6 in October and food
creased 2.9 percent from a wages and salaries to at- signaled it expects to raise costs increased 1 percent.
year earlier. tract and keep workers. rates three more times next The price of new cars fell
Excluding the volatile food Average hourly pay rose in year. 0.7 percent, as automakers
and energy categories, October from a year earlier After its meeting Thursday, introduced their new car
core wholesale prices rose at the fastest pace in near- the Fed issued a statement models last month. Newer
0.5 percent in October and ly a decade. that suggested it saw little cars typically include ad-
2.6 percent from a year Companies may have to sign that inflation would ditional features and the
earlier. raise prices to offset the accelerate beyond its 2 government reflects that
Despite last month's in- costs of higher pay, which percent target. Consumer by lowering its measure of
crease, the figures suggest could spur higher inflation. prices rose 2.3 percent in auto prices.q