clear
Friday November 24th, 2017 10:48PM

Small companies make big gains as US stocks climb

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Smaller U.S. company stocks are soaring Wednesday after a report showed business investment climbed in August. Investors are also reviewing tax cuts proposed by President Donald Trump and congressional Republicans. Stocks are near all-time highs as banks and technology companies lead the way, and investors are selling traditionally safe assets like gold and big-dividend stocks.

KEEPING SCORE: The Standard & Poor's 500 index added 12 points, or 0.5 percent, to 2,509 as of 3 p.m. Eastern time. The Dow Jones industrial average rose 72 points, or 0.3 percent, to 22,356. The Nasdaq composite leaped 79 points, or 1.2 percent, to 6,459.

The Russell 2000, which is made up of smaller-company stocks, did far better than other indexes and continued to set records. It gained 29 points, or 2 percent, to 1,485, and has jumped 9 percent since mid-August.

BUSINESS INVESTMENT: The Labor Department said a gauge of business investment rose for the second month in a row. Investors hope that means U.S. manufacturing is getting stronger as the global economy continues to improve. Smaller financial, industrial and technology companies climbed.

"We've been waiting for that," said Kate Warne, an investment strategist for Edward Jones, of the recent improvement. "Business spending has been relatively weak," with spending by consumers keeping the economy afloat.

TAX PLANS: The proposed a tax plan cuts tax rates for individuals and corporations, reduces the number of personal tax brackets, and nearly doubles the standard deduction used by most Americans. It would lower the top corporate tax rate to 25 percent from its current 35 percent.

With months of negotiations likely ahead and many key details missing, it's not clear what kind of plan might ultimately pass. But Warne said a corporate cut would help smaller, domestically-focused companies more than large ones.

"A corporate tax cut tends to be better news for smaller companies because they don't have as many ways to reduce their tax rate," said Warne.

RATE FOCUS: Investors bet that interest rates will keep rising. The yield on the 10-year Treasury note climbed to 2.31 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 80 cents, or 3.2 percent, to $25.61 and Citigroup rose $1.65, or 2.3 percent, to $72.59.

Meanwhile companies that pay big dividends took steep losses. Kimco Realty, a real estate investment trust that owns outdoor shopping centers, fell 77 cents, or 3.8 percent, to $19.39. Household products maker Procter & Gamble gave up $1.73, or 1.9 percent, to $90.92. Rising bond yields made government bonds a more appealing investment to investors seeking income.

TECH GAINS: Chipmaker Micron Technology had a better quarter than investors expected, and its stock rose $2.70, or 7.9 percent, to $36.88. Facebook climbed $3.53, or 2.1 percent, to $167.74 and Google's parent company Alphabet picked up $20.81, or 2.2 percent, to $958.24.

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 lost $1.84, or 3.4 percent, to $51.87 and rival Under Armour gave up 26 cents, or 1.6 percent, to $16.28. Sporting goods retailers also slipped.

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 $4.04, or 7.3 percent, to a two-year low of $51.53.

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 $13.90, or 1.1 percent, to $1,287.80 an ounce. Two weeks ago gold was at a 12-month high, but it's fallen sharply since then. Silver lost 6 cents to $16.83 an ounce. Copper rose 1 cent to $2.93 a pound.

CURRENCIES: The dollar got stronger. It rose to 112.69 yen from 112.17 yen. The euro fell to $1.1760 from $1.1798.

OIL: Benchmark U.S. crude added 26 cents to $52.14 a barrel in New York while Brent crude, the standard for international oil prices, fell 54 cents, to $57.90 a barrel in London.

Wholesale gasoline fell 4 cents to $1.65 a gallon. Heating oil remained at $1.85 a gallon. Natural gas rose 6 cents to $2.97 per 1,000 cubic feet.

OVERSEAS: The FTSE 100 index in Britain rose 0.4 percent while Germany's DAX rose 0.4 percent. The CAC 40 in France added 0.3 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.

___

AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities
© Copyright 2017 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Deal reached giving Italian group control of French shipyard
The French and Italian governments have reportedly agreed on a deal allowing Italian shipbuilder Fincantieri to take control of a key French shipyard
2:17PM ( 10 minutes ago )
Small companies make big gains as US stocks climb
US stocks are rising, and the biggest gains are going to smaller banks, industrial and technology companies after the Labor Department said business investment appeared to get stronger in August
2:17PM ( 11 minutes ago )
Moore's path to victory in Alabama: God, guns and defiance
Roy Moore's path to victory in Alabama: God, guns and defiance
2:14PM ( 13 minutes ago )
Associated Press (AP)
The Latest: Leaders of France, Italy announce shipyard deal
The leaders of French and Italy have announced a deal allowing Italian shipbuilder Fincantieri to take control of France's STX shipyard and ending a weeks-long dispute between the two countries
1:47PM ( 40 minutes ago )
The Latest: House Freedom Caucus backs tax plan
A vocal group of conservative House Republicans has come out in support of a draft tax plan endorsed by President Donald Trump and top GOP leaders
1:46PM ( 41 minutes ago )
VA running out of money for private health care program
The Trump administration says the Veterans Choice health care program may need more money as early as December to provide continued care to veterans.
1:44PM ( 43 minutes ago )
AP Business
US indexes edge higher as banks and technology stocks rise
US stocks are slightly higher as banks climb along with bond yields, but high-dividend stocks like utilities fall sharply
12:39PM ( 1 hour ago )
The Latest: Trump draws red line on tax overhaul
President Donald Trump has two red lines that he refuses to cross on overhauling taxes: the corporate rate must be cut to 20 percent and the savings must go to the middle class
11:29AM ( 2 hours ago )
UK's Corbyn says Labour is now the 'political mainstream'
Britain's left-wing opposition leader says the political center ground has shifted and his socialist ideas are "now the political mainstream."
11:13AM ( 3 hours ago )
AP Business - Corporate News
Trump, GOP tax plan cuts rates, nearly doubles deduction
President Donald Trump and congressional Republicans are rolling out a sweeping plan to cut taxes for individuals and corporations, simplify the tax system, and likely double the standard deduction used by most Americans.
10:57AM ( 3 hours ago )
US pending home sales fell 2.6 percent in August
US signed contracts to buy homes slipped 2.6 percent in August, the 5th decline in 6 months
10:30AM ( 3 hours ago )
Macron government to cut taxes _ and spending
French President Emmanuel Macron's government has unveiled its budget for next year, seeking to balance tax cuts with spending cuts to reduce the country's deficit
10:11AM ( 4 hours ago )
AP Business - Economy
Trump's tax plan: business owners win, deficit hawks lose
Small business owners, large corporations and the super wealthy could make out well under President Donald Trump's tax plan
11:17AM ( 3 hours ago )
Asian stocks mostly down as investors focus on US tax reform
Asian stock markets traded mostly lower as investors awaited the outlines of U.S. tax overhaul plans by President Donald Trump while headlines on geopolitical tensions surrounding North Korea quieted
3:18AM ( 11 hours ago )
Asian stocks mixed as investors turn focus on US tax reform
Asian stock markets were mixed as investors awaited the outlines of U.S. tax overhaul plans by Trump while headlines on geopolitical tensions surrounding North Korea have quieted
11:27PM ( 15 hours ago )
AP Business - Financial Markets
Sonic: 'unusual activity' on some credit cards
Sonic says there's been some 'unusual activity' on credit cards used at some of its restaurants
11:52AM ( 2 hours ago )
Ex-Thai leader sentenced in absentia to 5 years in prison
A Thai court has sentenced ousted Prime Minister Yingluck Shinawatra in absentia to five years in prison for alleged negligence in a money-losing rice subsidy program
8:37AM ( 5 hours ago )
Ex-Thai PM sentenced in absentia to 5 years in prison
A Thai court has sentenced former Prime Minister Yingluck Shinawatra in absentia to five years in prison for alleged negligence in a money-losing rice subsidy program
4:42AM ( 9 hours ago )
AP Business - Industries
Water and some food scarce as Puerto Rico emerges from storm
Supermarkets are gradually re-opening in the hurricane-ravaged San Juan capital but the situation is far from normal and customers are going home disappointed
4:04AM ( 1 day ago )
The Latest: UN regrets Iraq's Kurds went ahead with vote
U.N. Secretary-General Antonio Guterres is expressing regret that Iraq's Kurds have gone ahead with an independence referendum
10:34PM ( 1 day ago )
Zinke: One-third of Interior employees not loyal to Trump
Interior Secretary Ryan Zinke says nearly one-third of employees at his department are not loyal to him and President Donald Trump, adding that he is working to change the department's regulatory culture to be more business friendly
8:21PM ( 1 day ago )
AP Business - Utilities
Deal reached giving Italian group control of French shipyard
The French and Italian governments have reportedly agreed on a deal allowing Italian shipbuilder Fincantieri to take control of a key French shipyard
2:17PM ( 10 minutes ago )
Moore's path to victory in Alabama: God, guns and defiance
Roy Moore's path to victory in Alabama: God, guns and defiance
2:14PM ( 14 minutes ago )
Trump, GOP tax plan would cut rates for many Americans
President Donald Trump and congressional Republicans are rolling out a sweeping plan to cut taxes for corporations and potentially for individuals, simplify the tax system, and nearly double the standard deduction used by most Americans.
2:14PM ( 14 minutes ago )
Trump says he's not happy with HHS Secretary Tom Price
President Donald Trump says he is "not happy with his Health and Human Services Secretary Tom Price following reports that Price used a private plane for official business
2:13PM ( 14 minutes ago )
The Latest: Trump says 20 percent rate his goal all along
President Donald Trump says he's always wanted to reduce the corporate tax rate to 20 percent _ even though he said repeatedly he wanted to see it lowered to 15 percent
1:59PM ( 28 minutes ago )