Page 25 - ARUBA TODAY

BUSINESS Thursday 16 February 2017
A25

As economy cruises,

Bond yields rise and stocks push to records

STAN CHOE half of the gain coming be prudent to hike sooner
AP Business Writer since Election Day. Such a rather than later,” said Bri-
NEW YORK (AP) — Stocks performance would rank an Jacobsen, chief portfo-
and bond yields punched among the best calendar lio strategist at Wells Fargo
higher Wednesday, and years the index has had in Funds Management.
U.S. indexes set records the last three decades. Treasury yields jumped as
again, following more en- On Wednesday, reports investors sold off bonds. The
couraging news on the U.S. showed that retailers had 10-year Treasury yield rose
economy. stronger sales in January to 2.50 percent from 2.47
The Standard & Poor’s 500 than economists expect- percent late Tuesday. The
index rose 11.67 points, or ed, and inflation at the 30-year yield rose to 3.08

Traders work the floor at the New York Stock Exchange. Stocks and bond yields punched higher
Wednesday, and U.S. indexes set records again, following more encouraging news on the U.S.
economy.
(AP Photo/Mark Lennihan)

0.5 percent, to 2,349.25. It’s consumer level was the percent from 3.06 percent.
the seventh straight gain highest in years. Consumer When bonds pay more in
for the index and its longest prices rose 2.5 percent in interest, it can mean less
winning streak in three and January from a year ear- demand from income in-
a half years. The Dow Jones lier, the highest rate since vestors for stocks that pay
industrial average rose March 2012. The data give big dividends.
107.45 points, or 0.5 per- the Federal Reserve more Utility stocks in the S&P 500,
cent, to 20,611.86. The Nas- encouragement to raise which are some of the big-
daq composite rose 36.87, interest rates, and econo- gest dividend payers, fell
or 0.6 percent, to 5,819.44. mists said the possibility is 0.4 percent.
Seven stocks rose on the increasing that it may hap- Airline stocks cruised higher
New York Stock Exchange pen at the central bank’s after Warren Buffett’s Berk-
for every five that fell. next meeting in March. shire Hathaway disclosed
It’s a striking reversal for the Fed Chair Janet Yellen indi- that it added to its invest-
market from a year ago, cated in testimony before a ments in several of them.
when stocks around the Congressional committee Southwest Airlines rose
world were tumbling on that the central bank will
worries that another reces- likely accelerate its pace $1.98, or 3.6 percent, to
sion was on the way. Since of increases if the job mar- $57.29, United Continental
then, the economy and job ket remains healthy and rose $2.01, or 2.7 percent,
market have continued to inflation keeps climbing. to $75.75, Delta Air Lines
improve, along with corpo- The Fed has raised rates just rose $1.31, or 2.6 percent,
rate profits. And the market twice in the last two years, to $51.17 and American
got a jolt of adrenaline in after holding rates at nearly Airlines rose 97 cents, or 2.1
November, when Don- zero from late 2008 to help percent, to $47.54.
ald Trump’s surprise White lift the economy out of the Procter & Gamble rose
House victory raised hopes Great Recession. $3.26, or 3.7 percent, to
for tax cuts and other busi- “What really stuck out to $91.12 after activist inves-
ness-friendly policies from me in Yellen’s testimony tor Nelson Peltz’s Trian
Washington. was her adding emphasis Fund Management dis-
The S&P 500 is up nearly to the idea that as things closed in a regulatory filing
26 percent over the last currently stand, even with- that it owns a stake in the
12 months, with more than out fiscal stimulus, it would company.q