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BUSINESSFriday 19 February 2016
Stocks slip as 3-day rally ends; Wal-Mart sinks retailers
MARLEY JAY analysts expected. The re- J.C. Penney lost 20 cents, percent over the last week. According to an Energy
AP Markets Writer tailer now says its net sales
NEW YORK (AP) — Stocks this year will be about the or 2.6 percent, to $7.63 Brent crude, a benchmark Information Administra-
slipped Thursday as a same as in 2015. It’s strug-
three-day rally ran out of gling with competition from and Costco fell $2.26, or for international oils, lost 22 tion report, oil inventories
steam. A surge in oil prices online giant Amazon and
also slowed down, and other retailers and is also 1.5 percent, to $148.65. cents to close at $34.28 a grew by 2.1 million barrels
consumer stocks fell after paying its employees more,
Wal-Mart reported disap- which has reduced its prof- Wal-Mart’s struggles also barrel in London. and gasoline stockpiles in-
pointing sales and cut its its. In January the compa-
projections for the year. ny said it would close 269 affected supermarkets, as With oil prices trading creased by 3 million barrels.
The losses were small but stores. Wal-Mart is the first
spread across many indus- major retailer to report its Independent analyst Jim
tries. Energy stocks fell the quarterly results. Competi-
most, followed by banks. tors including Target, JC Ritterbusch said people
Those stocks had made big Penney and Macy’s will fol-
gains over the last three low next week. Retail con- are driving a bit more be-
days as the market rallied. sultant Walter Loeb said he
Wal-Mart’s weak results put thinks most of those com- cause the price of gas has
pressure on other retail- petitors will also report dis-
ers as well as supermarket appointing results. plunged, but it’s not a big
chains. “There are many, many re-
The Dow Jones industrial av- tailers who have not been change, so it’s not helping
erage gave up 40.40 points, proactive in keeping their
or 0.3 percent, to 16,413.43. expenses in check,” he improve prices.
The Standard & Poor’s 500 said, adding that weaken-
index lost 8.99 points, or 0.5 ing sales growth makes that “It looks like gasoline de-
percent, to 1,917.83. The a bigger problem. Loeb
Nasdaq composite index said consumers are spend- mand is still soft,” he said.
slid 46.53 points, or 1 per- ing cautiously because
cent, to 4,487.54. they are worried about job “You can only buy and sell
Wal-Mart’s profit fell com- security and aren’t sure if
pared to last year and its the U.S. economy will keep so many SUVs.”
sales were weaker than growing.
While oil companies have
shut down hundreds of oil
drilling rigs, it will be months
before oil production really
slows down because drill-
Trader Sal Suarino works on the floor of the New York Stock Ex- ing operations have be-
change. Stocks slipped Thursday as a three-day rally ran out of
steam. come much more efficient,
Ritterbusch said.
(AP Photo/Richard Drew) The S&P 500 jumped more
than 5 percent over the
the company noted that around 13-year lows, at past three days, with banks
meat and dairy prices are least six OPEC nations have and consumer stocks mak-
down. Kroger fell $1.35, or backed a plan that would ing the biggest gains. That
3.5 percent, to $38.06. stop oil production from in- rally erased about half of
Oil prices fluctuated after creasing any further. That the index’s losses since the
a big rally over the last few would help address a giant beginning of the year.
days. Investors are hoping supply glut. Iran, which has Financial stocks had made
that a round of internation- not agreed to the deal and the largest gains during the
al talks will lead to a deal has said it wants to keep three-day rally, as the S&P
that addresses a glut in oil increasing its production, 500’s financial stock index
production, but the U.S. said it supports any mea- jumped more than 7 per-
government reported that sure to raise oil prices. cent over the three days
energy stockpiles are still Investors saw that as a ending on Wednesday.
growing. good sign, but the deal JPMorgan Chase retreated
U.S. crude added 11 cents won’t go into effect un- 96 cents, or 1.6 percent, to
to close at $30.77 a bar- less all 13 OPEC members $57.81 and Bank of Ameri-
rel in New York. The price agree to it. Meanwhile, ca fell 32 cents, or 2.5 per-
of U.S. oil has climbed 17 stockpiles keep growing. cent, to $12.24.q
Amid turmoil:
Yahoo CEO tries to reassure mobile partners
MICHAEL LIEDTKE Just before Mayer’s ap- California, company sheds
AP Technology Writer pearance, Yahoo tried to 15 percent of its workforce
SAN FRANCISCO (AP) — underscore its long-term and closes unprofitable ser-
Yahoo CEO Marissa Mayer commitment to mobile by vices. Even though she is
found herself in an awk- projecting this statement deviating from an original
ward situation Thursday on a huge screen hanging turnaround plan, Mayer
at the struggling Internet above the stage: “Imagine has steadfastly insisted that
company’s annual confer- what the next seven years Yahoo Inc. will still have a
ence for the makers of mo- will bring.” It’s not even bright future after her latest
bile apps. clear that Yahoo will ex- overhaul.
She had to persuade an ist in its current form seven Mayer touched upon that
auditorium full of program- months from now, given theme Thursday as she em-
mers and advertising part- that some of its sharehold- phasized that that Yahoo
ners that Yahoo will grow ers want the company to is still investing heavily in
into an increasingly impor- sell its Internet operations mobile devices despite the
tant player in the mobile after 3 1/2 years of declin- massive cutbacks in other
market. This while the com- ing revenue under Mayer’s areas of the company.
pany is dramatically shrink- leadership. Mayer and the “There is incredible poten-
ing to appease restless rest of Yahoo’s board is ex- tial here,” she assured the
shareholders threatening ploring “strategic alterna- mobile developers. “To-
to overthrow management tives” that could include a gether, we can build the
unless things get better. sale while the Sunnyvale, future of mobile.”q
