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Saturday 3 december 2016 BUSINESS
A24

Rally ebbs as investors seek safety after wage data Survey: U.S. firms

MARLEY JAY loss from Goldman Sachs, stimulus spending to boost The Labor Department add 216,000 jobs,
AP Markets Writer which closed at a nine- the economy in 2017. The said U.S. employers added most in 5 months
NEW YORK (AP) — Inves- year high on Thursday, the weak wage figures throw 178,000 jobs in November C. S. RUGABER
tors made a small move Dow Jones industrial aver- that into doubt. as hiring remained steady. AP Economics Writer
back to safer assets Friday age dipped after closing “You’re less likely to see Investors have long ex- WASHINGTON (AP) — U.S.
afternoon after the gov- at a record high a day inflation build if people pected that the Federal companies added a solid
ernment’s November jobs ago. aren’t getting paid more Reserve will raise interest 216,000 jobs in November,
report showed continued The jobs report called into because they can’t afford rates later this month, and the most since June and
the jobs report did noth- evidence that the incom-
ing to dispel that notion. ing Trump administration is
But fewer people looked inheriting a solid economy.
for work and hourly wages Payroll provider ADP said
slipped. Bond prices, which this week that nearly all the
have been falling sharply gains occurred in service
since the presidential elec- sectors such as retail, ho-
tion, rose. The yield on the tels and restaurants, as well
10-year Treasury note fell as higher-paying profes-
to 2.30 percent from 2.45 sional services. Construc-
percent. tion firms added 2,000 jobs,
Lower bond yields pushed while manufacturing shed
investors to buy utility and 10,000.
real estate companies The figures add to oth-
and consumer goods mak- er recent signs that the
ers, which are often com- economy is expanding at
pared to bonds because a decent pace. Growth
of their big dividend pay- reached 3.2 percent at an
ments. When bond yields annual pace in the July-
fall, those stocks become September quarter, the
more appealing to inves- government said Tuesday,
tors seeking income. Gen- much higher than the 1.1
eral Growth Properties rose percent rate in the first half
Trader Gregory Rowe works on the floor of the New York Stock Exchange, Friday, Dec. 2, 2016. of the year. Americans
Investors made a small move back to safer assets Friday afternoon after the government’s No- 62 cents, or 2.5 percent, to
vember jobs report showed continued hiring, but weak wages. $25.46 and Exelon rose 84 bought homes at the fast-
(AP Photo/Richard Drew) cents, or 2.6 percent, to est pace in a decade in
$33.01. PepsiCo climbed October and consumer
hiring, but weak wages. question some of investors’ to spend more,” said Koes- $1.57, or 1.6 percent, to confidence is at a nine-
Indexes finished little hopes about the state of terich. $100.60. year high.
changed as real estate the economy, and they re- The Dow lost 21.51 points, The drop in bond yields By one measure, home
and household goods versed some of the moves or 0.1 percent, to 19,170.42. also affected banks be- prices nationwide have fi-
companies rose, but they’ve made since the The Standard & Poor’s 500 cause yields are linked to nally surpassed their bub-
banks, which have soared presidential election three index rose 0.87 points to long-term interest rates. ble-era peaks, boosting
since the presidential elec- weeks ago. 2,191.95. The Nasdaq com- Lower interest rates mean household wealth. And
tion, took losses. “It suggests that inflation- posite added 4.55 points, banks can’t make as much there are signs wages are
Most stocks finished high- ary pressures maybe aren’t or 0.1 percent, to 5,255.65. money from lending. Gold- picking up after years of
er, and the biggest gains building as quickly, at least The weak finish appeared man Sachs fell $3.27, or 1.4 sluggish growth.
went to companies that on the wage side, as some to mark an end, at least for percent, to $223.36 and “Overall, consumers are
pay big dividends, similar had supposed,” said Russ now, of the post-election Citigroup gave up $1.25, or feeling confident and are
to bonds. Investors also Koesterich, head of asset rally for U.S. stocks. The S&P 2.2 percent, to $56.02. driving the strong per-
bought bonds, and prices allocation for BlackRock’s 500 and Nasdaq fell this The financial sector of the formance we currently
rose and yields fell. Global Allocation Fund. week after a three-week S&P 500 is the highest it’s see in the job market,”
The dollar also weakened He said investors want rally took them to record been since 2008, up 13 per- Ahu Yildirmaz, head of
as investors expected to see a combination of highs. The Dow finished lit- cent since the presidential the ADP Research Institute,
less inflation. Thanks to a strong wage growth and tle changed. election. q said.
Mark Zandi, chief econo-
mist at Moody’s Analytics,
BP to pursuit big oil project in the Gulf of Mexico said that retail hiring for
the winter holiday shop-
ping season was especially
HOUSTON (AP) — BP PLC in oil prices. BP said, howev- timated cost of $20 billion. project’s first phase. Pro- strong, even after seasonal
is moving ahead with a $9 er, that the project would The project became less duction is expected to be- adjustments intended to
billion oil project in the Gulf be profitable even at or attractive when oil prices gin in late 2021. offset those effects. That
of Mexico after a cost-cut- below current oil prices. began tumbling from highs The slump in oil prices has suggests retailers may be
ting redesign, a sign of con- BP spokesman Jason Ryan over $100 a barrel in mid- led companies like Exxon ramping up their tem-
fidence about future prices said the OPEC decision did 2014. BP said the project Mobil Corp. and Chevron porary hiring efforts ear-
for crude. not affect the company’s was redesigned to use a dif- to cut back sharply on in- lier to ensure they can find
The UK-based oil giant an- decision. Minority partners ferent type of floating plat- vestment in new major enough workers, he said.
nounced it would contin- BHP Billiton Ltd. and Chev- form, lowering the cost to projects. Since January, Americans’ incomes in-
ue with the second phase ron Corp. have not decid- $9 billion. It will be capable however, oil prices have creased at their fastest
of its Mad Dog project off ed yet whether to invest in of pumping up to 140,000 rebounded from under $30 pace in six months in Oc-
the Louisiana coast just a the redesigned project. barrels of oil per day from a barrel. BP said it plans to tober, according to a
day after OPEC ministers The companies decided as many as 14 wells, com- add 800,000 barrels a day separate report from the
agreed to cut production, to re-evaluate the project pared with the 80,000 bar- of new production through Commerce Department
a move that sparked a rally in 2013, citing its initial es- rels a day capacity of the 2020.q Wednesday.q