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27 September 2017
 |
| Wall Street financial markets (The Total Investment & Insurance Solutions) |
U.S. stock indexes are slightly higher Wednesday as banks rise along
with bond yields, but utilities and other big-dividend stocks tumble. Smaller
companies are climbing as investors review tax cuts proposed by President
Donald Trump and congressional Republicans, and technology companies continue
to recover some of their recent losses. Athletic gear giant Nike is falling as
investors are concerned about its U.S. business.
KEEPING SCORE: The Standard & Poor's 500
index added 2 points, or 0.1 percent, to 2,499 as of 10:50 a.m. Eastern time.
The Dow Jones industrial average was unchanged at 22,283. The Nasdaq composite
advanced 35 points, or 0.6 percent, to 6,415. The Russell 2000 index, which is
made up of smaller-company stocks, continued to set records as it gained 6
points, or 0.4 percent, to 1,463.
FED FOCUS: Investors bet that interest rates
will keep rising. Tuesday afternoon, Fed Chair Janet Yellen said the central
bank will be careful not to raise interest rates too slowly even though
inflation has long been weaker than the Fed expects. Investors currently think
the Fed will raise rates again in December, and Yellen and other policymakers
say they plan to raise rates several more times in 2018.
The yield on the 2-year Treasury note rose to
1.47 percent from 1.45 percent. The yield on the 10-year note climbed to 2.30
percent from 2.24 percent. That helped banks, as higher interest rates mean
they can charge more to lend money. Bank of America picked up 56 cents, or 2.2
percent, to $25.38 and Citigroup rose $1.41, or 2 percent, to $72.35.
Companies that pay big dividends, including
real estate investment trusts and utility companies, took steep losses. Rising
bond yields made government bonds a more appealing investment to investors
seeking income.
CURRENCIES: The dollar also got stronger. It
rose to 112.82 yen from 112.17 yen. The euro fell to $1.1733 from $1.1798.
LACES UNTIED: Shoe and athletic gear maker
Nike said sales in the U.S. remained weak in its first fiscal quarter and steep
discounts continued to affect its business. While its earnings and revenue were
better than analysts expected, analysts chalked much of that up to lower taxes,
stock repurchases, and spending cuts.
Nike stock lost $2.02, or 3.8 percent, to
$51.68. Other sporting goods companies also slumped. Under Armour gave up 30
cents, or 1.7 percent, to $16.24. Retailer Dick's Sporting Goods shed 42 cents,
or 1.5 percent, to $27.19 and Foot Locker fell 48 cents, or 1.4 percent, to $34.64.
TAX PLANS: President Donald Trump and
congressional Republicans are proposing a tax plan that cuts taxes for
individuals and corporations, reduces the number of personal tax brackets, and
nearly doubles the standard deduction used by most Americans. The top tax rate
for corporations would be cut to 25 percent from 35 percent. But with months of
negotiations likely ahead and many key details missing, it's not clear what
kind of plan might ultimately pass.
TWITTER TEST: Twitter climbed after the
company said it will test a 280-character limit for tweets. That's double the
current limit, which has existed for the social media company's entire history.
The stock gained 27 cents, or 1.7 percent, to $16.86.
Other technology companies also climbed.
Chipmaker Micron Technology had a better quarter than investors expected, and
its stock rose $2.77, or 8.1 percent, to $36.95. Facebook climbed $2.34, or 1.4
percent, to $166.55 and Apple picked up $1.33 to $154.47.
POWERING DOWN: Utility company Scana dropped
after state police in South Carolina said they are looking into "potential
criminality" by the company after a nuclear plant construction project was
shut down after some $10 billion had already been spent. Scana said it will
cooperate fully with the inquiry. Its stock sank $3.30, or 5.9 percent, to
$52.27.
Scana's South Carolina Electric & Gas
unit and partner Santee Cooper canceled the project in July after contractor
Westinghouse filed for bankruptcy.
LOSING ITS LUSTER: Gold fell to its lowest in
a month. The metal's price declined $11.10 to $1,290.60 an ounce. Two weeks ago
gold was at a 12-month high, but it's fallen sharply since then.
OIL: Benchmark U.S. crude rose 11 cents to
$51.99 a barrel in the New York while Brent crude, the standard for
international oil prices, fell 33 cents to $57.59 a barrel in London.
OVERSEAS: The FTSE 100 index in Britain rose
0.4 percent while Germany's DAX rose 0.6 percent. The CAC 40 in France added
0.4 percent. Japan's Nikkei 225 fell 0.3 percent and South Korea's Kospi dipped
less than 0.1 percent. Hong Kong's Hang Seng index rose 0.5 percent.The Total Investment & Insurance
Solutions
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