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BUSINESSFriday 29 January 2016
Alibaba 3Q net income jumps on strong holiday season
MAE ANDERSON items during the holidays. the fastest-growing econo- bile spending accounted than the 28 percent rise in
Associated Press The results were a reassur- mies in the world. We have for 65 percent of total Chi- the prior quarter.
NEW YORK (AP) — Alibaba ing sign as worries about a no reason to think anything na retail revenue, up from R.W. Baird analyst Colin Se-
is hoping its better-than-ex- slowdown in the Chinese different in the foreseeable 30 percent last year. bastian said slowing gross
pected third-quarter results economy continue. Ex- future.” Annual active buyers rose merchandise volume could
help reassure investors wor- ecutives sought to put a For those wondering how 22 percent to 407 million. be a “potential yellow
ried about the state of the positive spin on the China Alibaba’s results are be- But investors were still flag,” but concerns about
Chinese economy. economy. ing affected by the Chi- spooked by any possible the economy are “largely
The Chinese e-commerce “The Chinese economy is nese economy: “I think the signs of weakness. overblown.”
powerhouse third-quarter going through a structural strong (revenue) numbers Growth in gross merchan- “Overall, we view these re-
net income jumped ahead shift from high-growth to we released today speak dise volume, or the total sults as largely reinforcing
of analyst expectations as more moderate more sus- for themselves,” he added. value of items bought on a positive view of Alibaba,
mobile shopping contin- tainable growth,” said Joe Alibaba is benefiting from Alibaba’s Chinese retail even in the face of a tran-
ued to grow and Chinese Tsai, executive vice chair- a shift to mobile spending sites, rose 23 percent, but sitioning China economy,”
customers snapped up man. “China is still one of and a growth in users. Mo- that was slower growth Sebastian said.q
US stocks rise as oil prices jump again; tech climbs
Trader Glenn Kessler, left, and specialist Michael McDonnell work on the floor of the New York points, or 0.9 percent, to day after it said it will cut
Stock Exchange. U.S. stocks rose Thursday as the price of oil climbed for the third day in a row 4,506.68. Stocks switched more spending, picked up
while key oil-producing nations discussed cuts in production. between small gains and another $3.49, or 9.5 per-
losses throughout the morn- cent, to $40.34.
(AP Photo/Richard Drew) ing. In the afternoon they Facebook surged after re-
gradually traded higher, porting that its profit more
MARLEY JAY drugmakers fell. Russia, Saudi Arabia and but never went as high as than doubled in the fourth
AP Markets Writer Facebook made its biggest OPEC discussed produc- they did at the very begin- quarter. The social network-
NEW YORK (AP) — U.S. leap in two and a half years tion cuts. ning of the day. ing site gained another 46
stocks rose Thursday as the after it said its profit more The Dow Jones industrial U.S. crude rose 92 cents, million users, giving it 1.59
price of oil climbed for the than doubled in the fourth average climbed 125.18 or 2.8 percent, to $33.22 a billion around the world.
third day in a row while key quarter. The social network points, or 0.8 percent, to barrel in New York. Brent The stock rose $14.66, or
oil-producing nations dis- finished 2015 with almost 16,069.64. The Standard & crude, a benchmark for 15.6 percent, to $109.11, its
cussed cuts in production. 1.6 billion users. Sports ap- Poor’s 500 index picked up international oils, gained best day since July 2013.
Tech and consumer stocks parel maker Under Armour 10.41 points, or 0.6 percent, 79 cents, or 2.4 percent, to Facebook’s results lifted
traded higher, led by Am- also surged. Energy prices to 1,893.36. The Nasdaq $33.89. The price of U.S. oil the four big-name “FANG”
azon and PayPal, while and companies rose as composite index rose 38.51 has climbed 9.5 percent stocks: Facebook, e-com-
over the last three days merce giant Amazon,
as investors hope produc- streaming video company
tion will be reduced, which Netflix and search engine
would strengthen the fuel’s operator Google. Amazon
price. Oil prices have been advanced almost 9, while
on a long, steep slide since Google’s parent compa-
2014 as world stockpiles hit ny, Alphabet, and Netflix
extremely high levels and both rose about 4 percent.
investors feared demand “Since Facebook killed
would get weaker. Last it yesterday, the others
Wednesday U.S. oil closed are enjoying a rally,” said
at a 12-year low of $26.55 Wedbush analyst Michael
a barrel. Pachter. “Facebook use is
Oil and natural gas produc- completely independent
er Devon Energy rose $2.30, of Amazon use, but inves-
or 9.4 percent, to $26.79. Oil tors blindly bid up all of
company Hess, which rose them when one does well.”
almost 6 percent Wednes- q
Ford’s 2015 pretax profit jumps up on stronger sales
DEE-ANN DURBIN a decade, and the F-Series it spent heavily in 2014 to a growing housing market turn — and at some point
AP Auto Writer pickup remained the best- build new plants in Asia and all bode well for continuing there will — we’re very
DEARBORN, Mich. (AP) — selling vehicle in the U.S. for bring a new, aluminum-sid- strong sales. well prepared to manage
Higher sales in most of the the 34th straight year. Ford ed F-150 pickup to market Shanks said Ford’s grow- that and continue to be
world helped Ford Motor reported a profit in Europe in the U.S. The company ing business outside the U.S. profitable and continue to
Co. achieve a record pre- for the first time in four years, expects this year’s pretax should also comfort inves- pay our regular dividend
tax profit in 2015, but inves- and profits in Asia jumped profit to be equal or higher. tors. He said more than half and continue to invest in
tors remain skittish that the 29 percent. A change in Shanks said he agrees that of the $1.3 billion increase the business,” Shanks said.
good news won’t keep the way Ford accounts for the U.S. market — which in Ford’s operating profit Shanks said one metric
coming. its pension costs also boost- saw record new-vehicle in the fourth quarter came — cash flow — will fall this
Ford’s pretax profit jumped ed pretax results. sales of 17.5 million last year from regions outside North year because of increased
48 percent to $10.8 billion, Bob Shanks, Ford’s chief fi- — is plateauing, but it could America. engineering costs and the
the highest in its 112-year nancial officer, said 2015 stay at that high level for “We have a very strong, expense of bringing a new
history. The company’s U.S. was the “breakthrough several years. Low oil pric- robust structure, so if and aluminum-sided Super Duty
sales hit their highest level in year” Ford promised after es, low interest rates and when there will be a down- truck to market. q
