North State Journal for Sunday, July 10, 2016
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NATION& WORLD S&P 500 nears record high after jobs report By Donna King North State Journal NEW YORK — The benchmark S&P 500 stock index brushed against its record closing high on Friday as Wall Street rallied after a much-larger-than-expected jump in jobs growth allayed fears of a slow down after a dismal jobs report for May. The S&P briefly traded above its record close but ended less than a point below it, coming within three points of the all-time intraday high of 2,134.72. “The equity market is telling you the second quarter economy looks better than the first quarter,” said Art Hogan, chief market strategist at Wunderlich Securities in New York. He said if earnings season, which begins next week, provides investors with a strong outlook, the S&P will likely break the record and has a chance at rallying from there. According to FACTSET, the S&P 500 is expected to report a year-over-year decline in earnings of 5.6 percent for
Campaigns from page A1 Cooper took Trump’s presence in the state as an opportunity to tie Republican Gov. Pat McCrory to the often controversial statements from the Republican presidential candidate. “Even here in North Carolina, we’ve seen the damage that one reckless act has cost our economy,” Cooper said. “The last thing America needs is a reckless president.” Clinton echoed Cooper’s comments. “Donald Trump is simply unqualified and temperamentally unfit to be president,” Clinton said. “Here in North Carolina, this election is our chance to say our country is better than this. In America, we don’t tear each other down. We lift each other up. We build bridges, not walls. We don’t call the country we love a disaster and a laughingstock. We know that America is the greatest country on Earth.” Trump in Raleigh In the capital city of Raleigh, Trump got standing ovations and cheers as he took aim at Clinton’s policy positions and Tuesday’s decision from FBI Director James Comey that she will not face charges of mishandling classified information. Attorney General Loretta Lynch said she would accept the recommendations of the FBI. “Today is the best evidence we’ve ever seen that our system is totally rigged,” said Trump before approximately 2,200 supporters at Memorial Auditorium in Raleigh. “Hillary Clinton put our entire country in danger. It was confirmed today that she routine-
the second quarter, making the near record-high market prices suspect. “The old high has been resistance and if you break it and see earnings growth and relatively good guidance, people will probably try to get in front of that,” said Hogan. Some analysts said the strong jobs number could put an interest rate hike from the Federal Reserve back on the table, even as concerns linger over the global economic impact from Britain’s vote last month to leave the European Union. Financial stocks on the S&P 500, which may benefit from a rate hike, gained 1.8 percent. Wells Fargo and JPMorgan were among the biggest boosts to the broad index, while Goldman Sachs’ 2.3 percent rise provided the biggest boost to the Dow. The Dow Jones industrial average closed 250.86 points, or 1.4 percent, higher at 18,146.74; the S&P 500 gained 32 points, or 1.53 percent, to 2,129.9 and the Nasdaq Composite added 79.95 points, or 1.64 percent, to 4,956.76.
ly sent classified emails through an insecure network. “We now know that she lied to the country when she said she did not send classified information through her server. She was grossly incompetent, and the lives of American people were put in danger so she could continue her corrupt financial dealings and hide what she was doing.” Trump also criticized Clinton and Obama’s use of Air Force One for the Charlotte campaign stop. “Why is she campaigning with a plane owned by the United States?” Trump said. “He can take that kind of time off to take Air Force One and campaign for her? She was standing there with the presidential seal. She doesn’t look presidential to me folks, I can tell you that.” While his comments on Clinton drew cheers from the audience, the key points of the speech that triggered standing ovations were Trump’s comments on the economy and battling ISIS. “Hillary Clinton’s policies have spread ISIS and made Iran the dominant power in the Middle East. She can’t keep her emails safe, and folks, she sure as hell can’t keep our country safe,” he said. “We need fresh, tough, bold ideas from people who know what they’re doing, people who don’t worry about political correctness. “We are going to bring jobs back to North Carolina and to our country. It’s going to be America first, not all these other countries who don’t give a damn about us,” he said. “We are going to take our country back, and we want to help everybody, African-American youth, Hispanics, Latinos, we have to take it back for all of us.” Trump was introduced by Lt. Gov. Dan Forest and Ken McK-
For the week, the three major indexes posted gains of more than 1 percent. All major S&P 500 sectors were higher, led by gains in materials and industrials, which tend to outperform when the economy is seen expanding. The CBOE Volatility index, Wall Street’s “fear gauge,” which has swung wildly since the June 23 vote by Britons to leave the European Union, ended at its lowest since late May. However some investors remained concerned about the effects of “Brexit” and the upcoming earnings season. Near record lows in 10- and 30-year U.S. government bond yields underscored those concerns. “I am maintaining a cautious outlook for the next couple of months,” said Phil Orlando, chief equity market strategist at Federated Investors in New York, citing Brexit, uncertainty about rate hikes and the November U.S. presidential election. Reuters contributed to this report.
ay, Trump’s senior adviser and a 1991 graduate of High Point University. McKay was the campaign manager for Chris Christie before the New Jersey governor dropped out of the Republican nomination race. Reaction While there were no reports of violence or arrests at either rally, both had a handful of protesters demonstrating outside. Three protesters were removed from inside the Trump event early, while an announcement was made to the audience not to confront protesters directly. Overall, supporters attending both rallies seemed to find the messages they came to hear. Jerri Jackson, a retiree living in Mooresville, said she has been a continued supporter of Clinton. “She is the right person for the job,” Jackson said. “I knew it a long time ago, but she’s always worked to help children, education and healthcare.” John Cauldwell, on the other hand, said Trump’s message speaks to his priorities as a business owner and father. “I’m very opposed to Hillary,” he said. “We have a son in the military, and I don’t trust her judgment. She just has a lot of baggage that follows her and I think we can do better for president. Trump knows how to employ people and I believe him about bringing jobs back to this country and strengthening our military.” Both candidates were on planes by Tuesday night, headed for their next campaign stops. They are vetting possible running mates in preparation for the political party conventions later this month.
shootings from page A1 Thursday’s shooting sent protesters running in panic while swarms of police found themselves under attack by what they believed to be multiple gunmen using high-powered rifles at ground level and on rooftops. During lengthy negotiations with police, the gunman said “the end is coming,” according to Dallas Police Chief David Brown. “He said he was upset about the recent police shootings,” Brown said. “The suspect said he was upset at white people. The suspect stated that he wanted to kill white people, especially white officers.” The Rev. William Barber, president of the North Carolina NAACP, called for nonviolence from both police and protesters. “Whether it’s the violence and terror by those who misuse the badge or the violence and terror against those who wear the badge and are doing their sworn duty, it is wrong,” Barber said. “Violence will only beget more violence,” Barber said. Thursday’s attack was the deadliest day for police in the United States since the Sept. 11, 2001, attacks on New York and Washington, D.C.
NEWS IN IMAGES
Shailesh Andrade | Reuters
A boy stands under an overflowing dam along Powai Lake after heavy rains in Mumbai, India, on Monday.
NCGA from page A1 budgeting,” said House Speaker Tim Moore (R-Kings Mountain) of the session’s fiscal focus. “Through close collaboration, House and Senate budget writers helped achieve these goals in a major way.” Teacher, state employee pay raises With the passage of the budget, overall education spending increases $512 million. Teachers will receive an average 4.7 percent pay raise, bringing average teacher salaries to $5j0,186 next year. The budget includes a provision for a third grade teacher bonus program, totaling $10 million, that rewards the top 25 percent of third grade teachers across the state and the top 25 percent of teachers in each local education area. Third grade teachers could potentially receive bonuses of up to $6,500. The budget included 1.5 percent raises for all state employees, as well as a half percent bonus. It also funded merit-based pay increases across all state employees. State retirees were awarded a one-time bonus of 1.6 percent in the budget, in lieu of an earlier House proposal that instituted a recurring cost of living adjustment for retired state employees. The judiciary also received a 4.5 percent salary increase. The budget fixes college tuition for a standard degree term for all University of North Carolina institutions and enacts reduced $500 per semester tuition for Western Carolina University, Elizabeth City State University and University of North Carolina at Pembroke. “I think it gives families some certainty on what the cost of education will be,” said Sen. Harry Brown (R-Jacksonville). Tax cuts and savings
Jeffrey Dubinsky | Reuters
Sandra Sterling reacts during a community vigil Wednesday in memory of her nephew, Alton Sterling, who was shot dead by police at the Triple S Food Mart in Baton Rouge, La., on July 5.
A total of 12 police officers and two civilians were shot during the attack, officials said. Three of the officers who were shot were women. North Carolina Gov. Pat McCrory released a statement Friday in support of the fallen officers. “Ann and I are heartbroken after the terrible tragedy in Dallas,” the statement said. “Our prayers go out to our dedicated
law enforcement officers across our nation and our state who risk their lives every day to protect and serve. During times like this, we must all come together and support one another in our communities.” Presidential candidates Republican Donald Trump and Democrat Hillary Clinton canceled planned events following the attack.
The budget increased the standard deduction, or zero tax bracket, to $17,500 over two years, a more than 12 percent increase. As a result, a family with a median income of $44,000 a year will save an extra $110 in the first year with the change, with additional savings going forward. A measure to reduce the cap on personal income taxes from 10 percent to 5.5 percent, offering voters the chance to amend the state constitution with the new limit, failed to make it out of House committee after passing the Senate. Still, majority leaders continued the pivot away from income taxes and toward sales taxes by further expanding sales taxes to services and clarifying which service-related businesses do, and do not, collect sales taxes. The budget also dedicated a record amount to the state’s rainy-day fund, totaling approximately 7.5 percent of the budget, for a total fund reserve of nearly $1.6 billion.
“This budget puts close to $500 million in our savings reserves,” said Brown. “I think that’s important, as we look in the future when that next recession does come, how we’ve prepared ourselves for that.” Unfinished business The short session also tackled unfinished business from last session, most notably addressing property owners whose water supplies were affected by the Dan River coal ash spill. The session’s lone veto by Gov. Pat McCrory came when legislators again passed a coal ash bill that McCrory said ran counter to the N.C. Supreme Court’s McCrory v. Berger decision on the issue of commission appointments. Rather than a protracted legal fight, the chambers passed a consensus bill that provides for permanent water supplies for affected property owners, and allows for reclassification of certain coal ash sites. The new bill has not been signed as of press time. A new Jessica Lunsford Act bans registered sex offenders convicted of crimes against children from certain places, adding specificity after a court ruled part of the law was too vague. Reporting requirements for state agencies implementing last session’s Medicaid reform law were also bolstered. Also awaiting the governor’s signature is a bill that allows for the establishment of Achievement School Districts, comprised of chronically low performing schools and subject to outside administrative management under the authority of the State Board of Education. In one of their last legislative acts of 2016 before adjourning, and perhaps the most heavily anticipated item of the session, lawmakers passed a technical fix related to the controversial Public Facilities Privacy and Security Act, or H.B. 2. After overtures made by McCrory and leaders in the House and Senate were reportedly rejected by conservative Republican caucus members, and reports Democrat gubernatorial nominee and current Attorney General Roy Cooper warned Democrats off any proposals short of a full repeal, any fix at all a seemed an uphill climb. In the end, a bill was passed that restored an individual’s cause for action in state court as it relates to discrimination in wrongful termination cases. The change fulfills a pledge by McCrory to work with the legislature to insure an individual’s ability to sue in state court in such cases, but was widely panned as insufficient by opponents of H.B. 2. Being an election year, lawmakers will now switch into full campaign mode, while North Carolinians from Murphy to Manteo take inventory of how any changes may affect their bottom line, both personally and economically, going forward. A brand new budgeting process and a long legislative session will begin in earnest in January 2017.