Page 24 - ATD 16Jan2016

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BUSINESSSaturday 16 January 2016

Stock market slides again, indexes at correction level Wal-Mart to close
down 269 stores,
ALEX VEIGA Crude oil has dropped be- stabilize. After a market Intel dropped 9.1 per- 154 of them in US
AP Business Writer low $30 a barrel from a high correction in August, few cent after the chipmaker
Never before has Wall of over $100 during the forecast it would happen posted its fourth-quarter A. D’INNOCENZIO
Street gotten off to a worse summer of 2014, eviscerat- again so soon. And the results, noting its personal AP Retail Writer
start to a year. ing energy company prof- Federal Reserve’s move in computerbusiness contin- NEW YORK (AP) — Wal-
The stock market capped its. On Friday, Williams Cos. December to raise inter- ues to slump. The stock was Mart is closing 269 stores,
the first two weeks of 2016 led a slide among oil, gas est rates for the first time in the biggest decliner in the more than half of them in
with a steep slide Friday and mining companies, nearly 10 years signaled to Dow. It fell $2.98 to $29.76. the U.S. and another big
that sent the Dow Jones falling $2.19, or 12 percent, many that the U.S. econo- Benchmark U.S. crude fell chunk in its challenging
industrial average down to $16.10. my was healthy. $1.78, or 5.7 percent, to Brazilian market.
nearly 400 points. Investors also got some dis- “The hope was global $29.42 a barrel in New York. The stores being shuttered
All three major stock index- account for a fraction
es — the Dow, the Nasdaq Traders monitor stock prices at the New York Stock Exchange, Friday, Jan. 15, 2016. U.S. stocks of the company’s 11,000
composite and the Stan- plunged again on Friday, completing the worst two-week start to a year ever. stores worldwide and less
dard & Poor’s 500 — are than 1 percent of its global
now in what’s known as a (AP Photo/Mark Lennihan) revenue.
correction, or a drop of 10 More than 95 percent of
percent or more from their couraging economic news growth would stabilize, and Brent crude, a benchmark the stores set to be closed
recent peaks. on Friday: The Federal Re- early in 2016 here, that has for international oils, fell in the U.S. are within 10
The market has been on serve said U.S. industrial been a disappointment, $1.94, or 6.3 percent, to miles of another Wal-Mart.
a stomach-churning ride production, which includes too,” said David Chalupnik, $28.94 a barrel in London. The Bentonville, Arkansas,
since the start of the year, manufacturing, mining and head of equities at Nuveen Stocks opened higher in company said it is work-
wrenched up — but mostly utilities, dropped in Decem- Asset Management. Europe but quickly fell. Ger- ing to ensure that workers
down — because of alarm ber for the third month in Despite the rough start to many’s DAX lost 2.5 per- are placed in nearby loca-
over a slowdown in China a row. And another gov- the year, Wall Street watch- cent, while France’s CAC tions.
and the plunging price of ernment report indicated ers are not ready to say the 40 dropped 2.4 percent. The store closures will start
oil to its lowest level in 12 U.S. retail sales dipped last bull market is over. Britain’s FTSE 100 fell 1.9 per- at the end of the month.
years. Investors are already month. “We don’t believe we’re cent. The announcement comes
seeing damage to U.S. cor- Many investors had wel- going into a bear market,” In China, the Shanghai three months after Wal-
porate profits, particularly comed the new year with Chalupnik said. “The rea- Composite Index slid 3.6 Mart Stores Inc. CEO Doug
at energy companies. fairly high hopes. They ex- son for that is the U.S. econ- percent to its lowest close McMillon told investors that
The Dow slid 390.97 points, pected oil prices would omy is sound.” in 13 months. q the world’s largest retailer
or 2.4 percent, to 15,988.08. would review its fleet of
The average had been stores with the goal of be-
down more than 500 points coming more nimble in the
early in the afternoon. face of increased compe-
The S&P 500 ended down tition from all fronts, includ-
41.51 points, or 2.2 percent, ing from online rival Ama-
at 1,880.33. The Nasdaq zon.com.
dropped 126.59 points, or “Actively managing our
2.7 percent, to 4,488.42. portfolio of assets is es-
The Dow and S&P 500 have sential to maintaining a
now fallen about 8 percent healthy business,” McMil-
this year, while the Nasdaq lon said in a statement.
is off about 10 percent. “Closing stores is never an
“Oil is the root cause of easy decision. But it is nec-
today,” said Dan Farley, essary to keep the compa-
regional investment strate- ny strong and positioned
gist at the Private Client Re- for the future.”
serve at U.S. Bank. “People Wal-Mart operates 4,500
are uncertain, and when in the U.S. Its global work-
they’re uncertain they’re force is 2.2 million, 1.4 mil-
scared.” lion in the U.S. alone.
Wal-Mart has warned that
US business stockpiles and sales fall in November its earnings for the fiscal
year starting next month
JOSH BOAK October. the capacity of U.S. economy to ex- will be down as much as 12
AP Economics Writer Manufacturing — hit hard by low pand. The Atlanta Federal Reserve percent as it invests further
WASHINGTON (AP) — U.S. business- oil prices and a strong dollar — ap- has forecast that growth was an an- in online operations and
es reduced their stockpiles in Novem- pears to be the center of the weak- nualized 0.8 percent in the October- pours money into improv-
ber, as sales also slipped. The decline ness. Over the past year, the sector’s December quarter, while the private ing customers’ experience.
in inventories among manufacturers inventories have slid 2.3 percent and Macroeconomic Advisers estimates it Of the closures announced
and merchant wholesalers could fan sales have tumbled 3.9 percent. The will be 0.5 percent. This would be a Friday,
worries about economic growth slow- report show rising sales and invento- slowdown from annualized growth of 154 locations will be in the
ing at the end of 2015. ries for retailers in November, but a 2 percent in the third quarter and 3.9 U.S., including the com-
November business inventories fell separate government report out Fri- percent in the second quarter. pany’s 102 smallest-format
0.2 percent, after having declined day showed retail sales slumping in In a separate report, the Federal Re- stores called Wal-Mart Ex-
0.1 percent in October, the Com- December. Economists are already serve said that manufacturing pro- press, which were opened
merce Department said Friday. Sales projecting slower growth for the final duction dipped 0.1 percent in De- as a test in 2011.
dropped 0.2 percent in November three months of 2015, as struggles in cember after falling 0.1 percent in Wal-Mart Express marked
following a 0.3 percent setback in China, Brazil and Europe have limited November.q the retailer’s first entry into
the convenience store
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