Page 25 - ARUBA TODAY

BUSINESS Friday 4 May 2018
A25

US stocks sink again as banks, health care companies slide

By MARLEY JAY ern time. The Dow Jones slow the economy down.
NEW YORK (AP) — U.S. industrial average fell 309 QUEASY RESULTS: Ameri-
stocks are skidding Thurs- points, or 1.3 percent, to can International Group
day morning as the market 23,615. The Nasdaq com- dropped 8.8 percent to
continues a sell-off that be- posite dropped 77 points, $49.99 after its first-quarter
gan late the previous day. or 1.1 percent, to 7,023. The profit fell short of analysts'
Big losses for insurer AIG Russell 2000 index of small- estimates. Cardinal Health,
are hurting financial stocks er-company stocks slid 19 which distributes prescrip-
while Cardinal Health tum- points, or 1.2 percent, to tion drugs, also had a small-
bles and takes the health 1,535. After a mostly flat day er-than-expected profit
care sector lower. Tesla is of trading, stocks slumped and slashed its forecast for
skidding after the electric late Wednesday after the the rest of the year.
car maker posted another Federal Reserve left interest Cardinal said its Cordis car-
big loss, and Wall Street re- rates unchanged. The Fed diovascular products busi-
acted negatively to com- expects to keep raising in- ness ran into supply chain
ments by CEO Elon Musk. terest rates to keep inflation problems and also paid a In this file photo, a sample of license plates for sale at a souvenir
KEEPING SCORE: The S&P under control, and inves- higher expected tax rate. stand are shown in front of the New York Stock Exchange in the
500 index dropped 32 tors appeared to get more The stock gave up 17.9 Financial District in New York.
points, or 1.2 percent, to concerned about the pos- percent to $53.06. Add-
2,603 as of 10:35 a.m. East- sibility that rising rates will ing to the woes for health care companies, medi- BONDS: Bond prices
cal device maker Hologic climbed. The yield on the
dropped 9.8 percent to 10-year Treasury note fell to
Chinese smartphone maker $35.74 after it wrote down 2.93 percent from 2.97 per-
the value of its Cynosure cent.
OTHER LOSERS: Industrial
business by about $732 mil-
Xiaomi files for Hong Kong IPO lion. It bought Cynosure for and technology compa-
nies also fell. Facebook lost
$1.57 billion a year ago.
Health care information 1.7 percent to $173.09 and
By KELVIN CHAN technology company Intel gave up 1.7 percent
HONG KONG (AP) — Chi- Cerner reported weak rev- to $51.42. Heavy machin-
nese smartphone maker enue and gave a disap- ery maker Caterpillar sank
Xiaomi filed documents pointing quarterly forecast. 3.6 percent to $138.75 and
Thursday with Hong Kong's It fell 7.8 percent to $53.42. Honeywell lost 2.3 percent
stock exchange operator HITTING THE SKIDS: Tesla tum- to $139.68. Among retail-
for an initial public offering bled 6.6 percent to $281.86 ers, Amazon fell 1 percent
that could be the world's after the electric car maker to $1,553.78 and Home
biggest share sale in years. said it lost $745 million in the Depot shed 2.3 percent to
Beijing-based Xiaomi is first quarter as it is still strug- $181.67.
the world's fourth biggest gling to produce more of its EAT UP: Kraft Heinz posted a
smartphone maker by ship- lower-cost Model 3 sedan. bigger profit than analysts
ment volume, according to The company has $9.5 bil- expected despite weaker
International Data Corp. lion in long-term debt and sales, and the Oreo maker's
The listing documents pro- some experts are wonder- stock gained 3.3 percent to
vided no financial details ing if Tesla will be able to $55.97. Cereal and Pop Tart
about the share sale or the pay all of its bills because maker Kellogg rose 2.3 per-
company's valuation. A Canning Fok, left, Group Co-Managing Director of CK Hutchison of the repeated losses. The cent to $57.96 after its profit
Holdings Limited and Xiang Wang, right, Senior Vice President of
date for the listing was not Xiaomi pose for photographers during a ceremony to form the company said it plans to and sales topped analyst
disclosed. The newspaper Global Strategic Alliance in Hong Kong, Thursday, May 3, 2018. defer some spending. projections.
South China Morning Post Associated Press Musk appeared to make LOSING THE BEAT: Spotify
cited unnamed banking matters worse on the com- sank after reporting quar-
sources saying Xiaomi plans yuan from its smartphone pany's conference call, as terly results for the first time
to raise up to $10 billion in a division. Xiaomi's business he was testy with analysts since becoming a publicly
deal that would value the also includes also partner- at times and dismissed traded company in early
company at $100 billion. ing with "Internet of Things" some questions as "boring" April.
That would make it the big- companies to develop and "not cool." JPMorgan CURRENCIES: The dollar fell
gest IPO since Chinese e- hundreds of connected Chase analyst Ryan Brink- to 109.25 yen from 109.73
commerce giant Alibaba's lifestyle devices like rice man said the call was "truly yen. The euro sipped to
$21.8 billion IPO in 2014 cookers, robot vacuum bizarre." $1.1965 from $1.1988.q
on the New York Stock Ex- cleaners and coffee mak-
change.Xiaomi, founded in ers. Operating profit tripled
2010, has grown quickly on to 12.2 billion yuan ($1.9 bil-
the strength of smartphone lion) but the company still
handsets priced as low as lost nearly 44 billion yuan
$115 and Internet-based ($6.9 billion) in 2017, mainly
marketing and distribution. due to the cost of convert-
The listing documents of- ing preferred shares held by
fered a glimpse of Xiaomi's investors. Xiaomi is applying
finances, with the compa- for a Hong Kong stock list-
ny reporting that revenue ing with dual share classes
rose by two-thirds last year that give certain share-
to 114.6 billion yuan ($18 holders much more power,
billion), including 80 billion which the new rules allow.