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BUSINESS Saturday 29 July 2017
A25

Stocks close sideways on disappointing profit reports

By STAN CHOE reported. Last quarter’s
AP Business Writer growth rate was more than
NEW YORK (AP) — Stock double that of the year’s
markets around the world first quarter, which was re-
sagged on Friday after Am- vised down to 1.2 percent.
azon and other big com- The faster growth, though,
panies reported quarterly was still a shade below the
results that underwhelmed 2.7 percent that econo-
investors. The Standard & mists expected. “Overall,
Poor’s 500 index lost 3.32 the economy continues to
points, or 0.1 percent, to move along, but it’s hard
2,472.10 and closed a week to see where the fuel is go-
packed with corporate ing to come from for further
earnings reports almost ex- acceleration,” said Rich
actly where it started. It set Weiss, chief investment of-
a record during the middle ficer of multi-asset strate-
of it. The Dow Jones indus- gies at American Century
trial average gained 33.76 Investments. He says the
points, or 0.2 percent, to economy reminds him of
21,830.31 and set another what golfers call a “son-in-
all-time high. The Nasdaq law” shot, one that’s not
composite fell 7.51, or 0.1 bad but not great. “We’re
percent, to 6,374.68. A little not throwing new money
more than half the com- Traders Gregory Rowe, foreground, and Mark Muller, left, work on the floor of the New York into the stock market at this
panies in the S&P 500 have Stock Exchange. Stock markets around the world sagged on Friday after Amazon and other big point,” Weiss said. Instead
now shown how much companies reported quarterly results that underwhelmed investors. (AP Photo/Richard Drew) of U.S. stocks, he prefers
profit they made during the foreign markets where he
spring, and the results have the few companies that also below many analysts’ rates steady and the gov- says economies have more
been mostly encourag- have fallen short of fore- forecasts, though revenue ernment on Friday gave potential for improvement.
ing. Earnings for the index casts have seen their stock for the latest quarter beat an update on the econo- Many other investors have
are on pace to be about prices punished. Amazon expectations. Earnings re- my’s health. The economy shifted their money using a
9 percent higher than a dropped $25.96, or 2.5 per- ports were the main focus grew at an annual rate of similar philosophy, and the
year earlier, according to cent, to $1,020.04 after its for markets during a busy 2.6 percent in the second falling value of the dollar
FactSet. But expectations profit missed expectations. week, where the Federal quarter, revved up by a rise against other currencies
were high coming into Its forecast for operating Reserve also decided on in consumer spending, the has helped boost foreign
the reporting season, and income this fiscal year was Wednesday to hold interest Commerce Department stocks’ returns.q

Strong demand at American Airlines; lean times ahead?

By DAVID KOENIG numbers. Investors, increas- gers than anyone.
AP Airlines Writer ingly worried about airlines Along the way, executives
DALLAS (AP) — Double-dig- cutting prices to hang on at several airlines spoke
it increases in fuel and la- to their share of passen- about lower fares in mar-
bor costs caused second- gers, sold off shares Friday kets stretching from New
quarter profit at American afternoon. York to Florida to Denver.
Airlines to fall 15 percent Shares of American Airlines Price-cutting during the
despite higher revenue. Group Inc. fell 58 cents, to peak summer season is
The world’s biggest air- $49.42. American’s results rare, said Cowen and Co.
line still beat Wall Street wrapped up a rocky earn- analyst Helane Becker.
expectations, earning ings season for the major She said it was understand-
$803 million in the quarter, U.S. airlines. It started with able that American would
which marks the start of a thud when United Airlines try to calm nervous inves-
the key summer-vacation gave a poor revenue prog- tors by sounding upbeat
travel season. Like other nostication for the third about the fourth quarter,
airlines, American is enjoy- quarter and continued with but it was too early to tell
ing demand that is strong An American Airlines jet taxis to the gate at Miami International a weak third-quarter fore- what might happen given
enough to push up aver- Airport, in Miami. American Airlines Group, Inc. reported cast on average fares from all the talk from other air-
age fares and fees. A key earnings Friday, July 28, 2017. Southwest Airlines, which lines about discounting do-
figure that roughly parallels (AP Photo/Lynne Sladky) carries more U.S. passen- mestic fares.q
fares jumped 5.7 percent
in the quarter, but Ameri- CONDO FOR SALE
can on Friday predicted
a much more modest in-
crease — between 0.5 per- 3 BEDROOM CONDO in Tierra del Sol.
cent and 2.5 percent — in Facing the Golf Course ground oor,
the same figure during the
July-through-September move in condition with furniture and new
period. An executive told airco system
analysts the fourth quarter
would be better than the Contact Owner at stemel@optonline.net,
third, although he gave no in USA for more information: 203-526-9329.