Page 25 - ARUBA TODAY

BUSINESS Saturday 6 OctOber 2018
A25

US stocks slide as job gains send bond yields even higher

By MARLEY JAY have struggled in 2018,
NEW YORK (AP) — U.S. have changed place and
stocks are lower Friday as performed better than the
investors continue to worry broader market.
about rising bond yields Banks were mixed Friday
and interest rates. The La- after big gains the previous
bor Department said the two days. Online broker-
economy continues to age E-Trade rose 0.9 per-
add jobs at a strong pace, cent to $52.95 while Gold-
which makes it more likely man Sachs lost 0.9 percent
rates will keep rising. to $225.45.
The yield on the 10-year Several major banks will re-
Treasury note has soared port their third-quarter re-
over the last three days and sults late next week as the
hasn't been this high since next round of company
mid-2011. Bond prices are earnings gets underway.
falling as investors sell them, UNFOLLOWED: Tesla stock
but Wall Street is also con- fell 5.5 percent to $266.26
cerned that spiking interest after CEO Elon Musk taunt-
rates could eventually slow ed the Securities and Ex-
the economy. change Commission just a
KEEPING SCORE: The S&P few days after he agreed
500 index lost 18 points, or to settle an SEC lawsuit trig-
0.6 percent, to 2,883 as of In this May 10, 2018, file photo, the opening bell hangs above the trading floor at the New York gered by a tweet he sent
11:45 a.m. Eastern time. The Stock Exchange. in August. As part of that
Dow Jones Industrial Aver- Associated Press settlement, Musk agreed
age inched slid 203 points, to step down as chairman
or 0.8 percent, to 26,423. ment of Labor said em- stocks. At the same time, higher interest rates mean and submit to oversight
Technology companies ployers added significant- there are few signs of a they make bigger profits when he's communicating
and smaller, more U.S.-fo- ly more jobs in July and big increase in the pace of on mortgages and other company news. His criti-
cused companies contin- August that it previously growth or inflation. Either of loans. Bond yields in Europe cisms of the SEC don't ap-
ued to suffer steep losses. thought, which made up those would push the Fed- also rose. pear to be company news,
The Nasdaq composite for a slightly disappoint- eral Reserve to raise inter- SWITCHEROO: The sell-off but they may have worried
skidded 101 points, or 1.3 ing gain in September. The est rates at a faster pace, in technology and inter- investors who hoped his
percent, to 7,778 as tech- September total was prob- which would start to slow net companies and retail- feed would be a little more
nology and internet com- ably reduced by the dam- down the economy. ers continued. Intel lost boring from now on.
panies continued to strug- age Hurricane Florence did BONDS: Bond prices kept 1.9 percent to $47.63 and Musk and Tesla are also
gle. The Russell 2000 index to the Carolinas. falling. The yield on the Apple slipped 1.4 percent paying $20 million each to
lost 17 points, or 1.1 per- Employers have added 10-year Treasury note rose to $224.74 while Google's end the lawsuit.
cent, to 1,629. 190,000 jobs on average to 3.22 percent from 3.19 parent company, Alpha- COSTLY: Wholesale club
The Nasdaq has dropped over the last three months, percent. The yield on the bet, sank 1 percent to operator Costco gave up
3.4 percent this week and and the employment rate 10-year Treasury is an im- $1,164.73. Among retailers, 3.7 percent to $223.08 after
the Russell has tumbled 4 fell to its lowest level since portant benchmark for lon- Netflix slumped 4.4 percent it said it discovered tech-
percent. Both indexes are December 1969. ger-term interest rates and to $347.58. nology problems related
on track for their biggest Friday's data suggest the it hasn't been this high since Those sectors have been to its financial reporting
drops since late March, economy should keep July 2011. the biggest gainers on the processes. Costco said it
and the Russell is on pace growing at a strong clip, The decline in bond prices S&P this year, but have tak- is investigating, but hasn't
for its lowest close since which means corporate and increase in yields have en sharp losses this week. found any problems with
late May. profits should continue to led to big gains for banks in Banks and industrial and its past earnings reports so
IT'S A LIVING: The Depart- grow. That's a good sign for the last few days because energy companies, which far.q

China tech stocks Lenovo, ZTE tumble after chip hack report

Associated Press ment supplied by Super the ongoing integrity of our and to connect to outside Ltd. were security risks and
HONG KONG (AP) — Chi- Micro Computer Inc. to supply chain." A spokes- computers. Super Micro, warned American tele-
nese tech stocks Lenovo American companies and woman for ZTE, headquar- headquartered in San Jose, coms companies not to
Group and ZTE Corp. tum- government agencies. tered in Shenzhen in south- California, denied its prod- buy their equipment. ZTE
bled in Hong Kong on Fri- Lenovo, with headquarters ern China, said she wasn't ucts contained malicious faced possible bankruptcy
day following a news report in Beijing and Research Tri- aware of the report. The chips. "Supermicro has this year after Washington
Chinese spies might have angle Park, North Carolina, Chinese foreign ministry never found any malicious imposed a seven-year ban
used chips supplied by an- is the biggest global manu- didn't respond to a request chips, nor been informed on sales of U.S. technology
other company to hack facturer of personal com- for comment. Bloomberg by any customer that such to the company over its
into U.S. computer systems. puters and has a growing said Chinese military oper- chips have been found," exports to Iran and North
Lenovo shares closed down smartphone brand. atives added components said a company statement. Korea. American authori-
15.1 percent while ZTE lost "Super Micro is not a sup- to Super Micro products Chinese tech companies ties lifted the ban in July
11 percent. plier to Lenovo in any ca- made at factories in China. face heightened scrutiny after ZTE paid a $1 billion
Bloomberg News cited pacity," said Lenovo in a It said the components in- in the United States. A 2012 fine, agreed to replace its
unidentified U.S. officials statement. "Furthermore, as cluded code that caused report by a congressional executive team and hired
as saying malicious chips a global company we take the products to accept panel said ZTE and Chinese U.S.-selected compliance
were inserted into equip- extensive steps to protect changes to their software rival Huawei Technology officers.q