Page 25 - ARUBA TODAY

BUSINESS Wednesday 24 OctOber 2018
A25

Stocks mostly recover from an early plunge on Wall Street

By ALEX VEIGA "They're coming in ahead
Associated Press of expectations, generally,
U.S. stocks were easing but the degree to which
back Tuesday from a steep, they're beating expecta-
broad sell-off that knocked tions is less than what it
more than 500 points off has been in previous quar-
the Dow Jones Industrial ters," Delwiche said. "That's
Average earlier in the day. why there's some concern
Even with the late-after- there."
noon rebound, stocks were Tesla was among the big
on track to extend the mar- gainers Tuesday. The stock
ket's recent string of losses, vaulted 12.3 percent to
including a four-day losing $293.13 after Citron Re-
streak for the benchmark search, a company that for
S&P 500 index. Bond prices years had bet against the
rose, sending yields lower, stock, reversed its position
as investors sought out saf- and put out a note saying
er investments. it would be a long-term in-
The latest selling came as vestor in the electric car
investors grew unsettled by and solar panel company.
slowing economic growth Benchmark U.S. crude fell
in China and the growing 4.2 percent to settle at
costs of President Donald $66.43 per barrel in New
Trump's aggressive trade Specialist Peter Mazza, center, and trader Michael Urkonis work on the floor of the New York Stock York. Brent crude, used
policies. Exchange, Tuesday, Oct. 23, 2018. to price international oils,
China's economy grew 6.5 Associated Press dropped 4.2 percent to
percent from July to Sep- close at $76.44 per barrel in
tember, the slowest pace driving up production Treasury note down to 3.17 share trade secrets in ex- London.
since early 2009. The world's costs. The stock skidded 7.2 percent from 3.19 percent change for access to the The dollar weakened to
second-largest economy percent to $119.31. late Monday. Chinese market. 112.47 yen from 112.82 yen
was cooling even before 3M Co. fell 3.8 percent to Hong Kong's Hang Seng in- A big drop in oil prices on Monday. The euro rose
the outbreak of a tariff war $193.67 after its earnings dex sank 3.1 percent. Euro- weighed on energy stocks to $1.1467 from $1.1466.
with Washington. That con- missed Wall Street's targets. pean markets also closed Tuesday. Marathon Oil Gold rose 1 percent to
trasts with the momentum The industrial manufacturer sharply lower. dropped 3.5 percent to $1,236.80 an ounce. Sil-
of the U.S. economy. The said it expects raw material Markets have been rat- $19.74. ver gained 1.4 percent to
government is expected prices to continue climb- tled in recent weeks by in- Truck maker Paccar fell 5 $14.79 an ounce. Copper
to say Friday that the U.S. ing, and for tariffs to have a creased worries over the percent to $57.45, while dropped 1 percent to $2.76
economy grew by 3.3 per- roughly $100 million nega- impact that rising interest engine manufacturer Cum- a pound.
cent in the third quarter, af- tive impact on the com- rates, inflation and the es- mins slid 3.4 percent to In Europe, the focus was on
ter growing by 4.2 percent pany's sourcing costs next calating trade dispute be- $135.12. Italy's dispute with the Euro-
in the second quarter. year. tween the U.S. and China Communications stocks pean Union over its plan to
The strong U.S. economy Caterpillar and 3M were, may have on Corporate were among the biggest ramp up public spending.
has helped power earn- by far, the biggest declin- America. gainers. Verizon Commu- The plan expands its target-
ings growth for companies ers in the 30-company Dow Trump has imposed tariffs nications climbed 4.3 per- ed deficit to 2.4 percent of
in the S&P 500. While those average. on about $250 billion in Chi- cent to $57.35 GDP next year, three times
companies are expected Losses in banks, energy and nese imports, and Beijing Traders also bid up shares in more than promised by the
to deliver 21.9 percent technology companies has retaliated by target- McDonald's after the fast- previous government.
earnings growth for the outweighed gains by inter- ing $110 billion in American food chain reported third- The European Union has re-
third quarter, investors are net and consumer-goods products. quarter results that topped jected Italy's budget, a first
concerned about future stocks. A sharp sell-off in Trump has threatened to analysts' forecasts. The for an EU member. It's wor-
growth amid rising inflation, Chinese and other global tax another $267 billion in stock gained 5.7 percent ried that the plans would
interest rates and uncer- markets set the stage for Chinese products, a move to $176.16. prevent Italy from lowering
tainty over trade. the turbulent day on Wall that would cover virtually Close to 17 percent of com- its debt, which is second
"That's the story, it's not the Street. everything China ships to panies on the broad S&P only to Greece among
current quarter results, but The S&P 500 fell 7 points, or America. 500 index have reported its members. Internation-
the commentary going for- 0.3 percent, to 2,748 as of The two countries are earnings for the third quar- al credit rating agency
ward, the impact of tariffs 3:31 p.m. Eastern Time. locked in a dispute over ter, and over half of them Moody's has downgraded
and what that means in The Dow erased much of U.S. allegations that China did better than expected. Italy's credit rating.q
terms of costs," said Willie its early losses. It was down steals U.S. technology and
Delwiche, an investment 62 points, or 0.3 percent, to forces U.S. companies to
strategist at Baird. "If tariffs 25,254. The average was
didn't come up in earnings down more than 540 points
calls and commentary, earlier.
then maybe you could The Nasdaq slid 10 points,
say we were moving away or 0.1 percent, to 7,457. The
from that, but the opposite Russell 2000 index of small-
is happening." er-company stocks gave
Caterpillar's stock price up 4 points, or 0.3 percent,
tumbled after the heavy to 1,534. The index is now
equipment manufacturer down for the year.
warned that Trump's taxes Bond prices rose, sending
on imported steel were the yield on the 10-year