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BUSINESS Saturday 13 May 2017
A25

OECD chief: US businesses stockpiles up slightly in March
Tax treaty will

ensure big firms WASHINGTON (AP) — U.S. rebuild their stockpiles had Annual GDP growth was For March, stockpiles held
businesses increased their added a full percentage just 0.7 percent in the first by manufacturers were un-
pay their dues stockpiles slightly in March, point to economic growth quarter. changed.
while their sales were flat. in the October-December Businesses spent much of Makers of autos and ve-
By DAVID McHUGH The Commerce Depart- quarter, a period when the last year working to reduce hicle parts had a big boost
AP Business Writer ment says business inven- economy grew by a tepid an overhang of unsold in inventories of 0.9 percent
BARI, Italy (AP) — The head tories rose by a season- 2.1 percent as measured goods, a process that im- as their sales dropped 0.5
ally adjusted 0.2 percent by the gross domestic posed a drag on growth.
of an international organi- percent. Sales of building
zation representing many in March, matching Febru- product. But economists say that materials plummeted 1.7
ary’s gain.
But growth slowed in the process is nearing an end
of the globe’s advanced percent in March. Overall,
economies says that a And sales were unchanged January-March quarter, in and the absence of a inventories rose 0.2 percent
in March after inching up part analysts say because drag from inventory reduc-
new, multinational tax at the wholesale level and
treaty will be of “massive 0.2 percent in February. inventories subtracted from tions should mean stronger 0.5 percent at retailers.q
An effort by businesses to overall economic activity. growth later in 2017.
consequence” in prevent-
ing big companies from
avoiding taxes. S&P slips, posts its first down week in a month
Angel Gurria, secretary-
general of the Organisa- ness changes that many
tion for Economic Co-op- investors are expecting.
eration and Development, A government report on Fri-
says the multilateral tax day showed that shoppers
treaty negotiated among picked up their spending
100 countries will make it at auto dealers, hardware
harder for multinationals to stores and online shops last
shift profits to low-tax coun- month, and retail sales rose
tries. Many of those coun- 0.4 percent from March.
tries are expected to sign That was below econo-
the final deal in Paris on mists’ expectations, but it’s
June 7. an acceleration from weak
The aim of the treaty is levels registered earlier in
“helping countries collect the year. It also may be an
what we believe is a fair indication that the econo-
share,” Gurria told The As- my will indeed pick up from
sociated Press on Friday on its early-year torpor, as
the sidelines of a meeting many economists predict.
of finance officials from the Consumer prices also
Group of 7 nations. picked up a bit of momen-
“Everybody should con- tum in April. Prices rose 0.2
tribute in order to run our percent last month, follow-
economies, in order to ing a drop of 0.3 percent
deliver health, in order to Trader Kevin Lodewick works on the floor of the New York Stock Exchange. Shares of department in March, as energy prices
deliver education, infra- stores sank again Friday, hurt by more evidence that shoppers are turning away from them. climbed higher. But after
structure, housing, water,” (AP Photo/Richard Drew) excluding energy and food
Gurria said. By STAN CHOE percent, to 6,121.23. Small- 500 moved by less than 0.5 prices, inflation was weaker
He said governments can- AP Business Writer company stocks fell more percent, the longest such last month than economists
not rely on taxes from ordi- NEW YORK (AP) — Shares than the rest of the market. streak since 1995. were expecting.
nary people or small busi- of department stores sank The Russell 2000 index lost “It’s extremely calm, which The Federal Reserve is pay-
nesses that can’t move again Friday, hurt by more 7.43 points, or 0.5 percent, always makes us a little ing close attention to in-
their income among coun- evidence that shoppers are to 1,382.77. nervous,” said Eric Mar- flation as it raises interest
tries. turning away from them. The biggest loss in the S&P shall, portfolio manager rates off their record lows,
It “politically became im- A drop in Treasury yields 500 came from Nordstrom, at Hodges Capital Man- particularly where it is after
possible to sustain” the per- also put pressure on bank which plunged $5.01, or agement. “We’re in a very excluding energy and food
ception that workers are stocks, and the weakness 10.8 percent, to $41.20 af- narrow market and a very prices, which can be vola-
being taxed “and the big helped pull the Standard ter it said a key sales figure thin market: It’s hard to buy tile.
guys, the multinationals are & Poor’s 500 index to its first weakened last quarter by things, and it’s hard to sell Bond yields dropped as
not paying their fair share,” weekly loss in the last four. more than analysts expect- things because the amount Treasury prices rose. The
he said. The S&P 500 dipped 3.54 ed. Nordstrom joined a long of trading volume out there yield on the 10-year Trea-
The treaty means that points, or 0.1 percent, to list of other department- has slowed down in recent sury fell to 2.32 percent
countries are spared hav- close at 2,390.90, part of store chains that have re- weeks.” from 2.40 percent late
ing to rewrite more than a 0.3 percent loss for the ported discouraging results The market has grown Thursday. The two-year
2,000 country-to-country week. The index is still within recently, as their customers sleepier as companies yield dropped to 1.28 per-
tax treaties. Negotiations half a percent of its record, increasingly head online. have reported stronger- cent from 1.34 percent,
were completed in No- though, and the market J.C. Penney fell 74 cents, than-expected profits and and the 30-year yield fell to
vember 2016. continues to make only or 14 percent, to $4.55 af- as encouraging data lifted 2.99 percent from 3.03 per-
The treaty is part of the modest moves through ter it reported a loss for its optimism about the global cent.
OECD’s effort to crack what’s become a week- latest quarter and weaker economy. The calmness Bank stocks have recently
down on a practice that slong, peaceful lull. revenue than analysts ex- also comes despite a spate been trading in the oppo-
multinational companies The Dow Jones industrial pected. of political jolts, includ- site direction of Treasury
developed over decades average fell 22.81 points, The broader market, ing concerns about how yields, because a pickup in
to exploit loopholes be- or 0.1 percent, to 20,896.61, though, was much more successful Republicans in interest rates would allow
tween different countries’ and the Nasdaq compos- pacific. It was the 13th Washington will be at push- banks to make bigger prof-
tax laws. q
ite rose 5.27 points, or 0.1 straight day that the S&P ing through the pro-busi- its from making loans.q