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BUSINESSThursday 23 July 2015
American Express tops second-quarter profit forecasts
KEN SWEET The New York-based com- analysts surveyed by Zacks spent on American Express’ goods purchased interna-
AP Business Writer pany said it earned $1.44 Investment Research was namesake cards, which is a tionally worth less when
NEW YORK (AP) — Ameri- billion after payments to for earnings of $1.33 per closely watched metric for their local-currency price is
can Express Co.’s second- preferred shareholders, share. The credit card is- the company, rose in the converted to dollars. AmEx
quarter profits fell 5 percent down from $1.52 billion the suer and global payments U.S. but fell sharply interna- is particularly exposed to
from a year ago, but the same period a year ago. company had revenue of tionally. U.S. card member currency fluctuations when
results still solidly beat ana- On a per share basis, AmEx $8.28 billion in the period, spending rose 6 percent to U.S. customers buy prod-
lysts’ estimates. A strong had net income of $1.42 missing analyst forecasts. $144.1 billion, while interna- ucts internationally when
U.S. dollar weighed on the per share. The results beat Nine analysts surveyed by tional spending fell 12 per- they travel, but their ac-
company’s international Wall Street expectations. Zacks expected $8.39 bil- cent to $30 billion. counts are denominated
operations once again. The average estimate of 15 lion. The amount of money A stronger dollar makes in dollars.q
Technology shares lead a slump in US stocks; Apple sinks
ALEX VEIGA The Nasdaq composite The major stock indexes pense of $8.4 billion related views service Angie’s List,
AP Business Writer shed 36.35 points, or 0.7 declined from the get- to its purchase of the Nokia Tupperware Brands and
U.S. stocks notched their percent, to 5,171.77. The go as traders reacted to phone business over a year Packaging Corp. of Amer-
second decline in as many tech-heavy index, which weaker showings late Tues- ago. The stock lost $1.74 to ica reported earnings or
days Wednesday, pulled hit a new high on Monday, day from Microsoft, Yahoo $45.54. revenue that fell short of
down by a technology remains the best-perform- and Apple. Apple fared the worst, Wall Street’s expectations.
stock slump headlined by ing index for the year. It’s Yahoo posted a nearly $22 shedding 4.2 percent after Whirlpool and Chipotle
Apple and Microsoft. management gave a cau- Mexican Grill were among
Both companies delivered Customers and staff stand in the entrance to an Apple store tious outlook for the current the companies whose
disappointing quarterly re- in New York’s Grand Central Terminal. Apple Inc. reported quarter and didn’t provide earnings impressed inves-
sults or outlooks the night disappointing quarterly financial results on Tuesday, July 21, much detail on how the tors Wednesday.
before, setting the stage 2015, leading US stocks lower on Wednesday, July 22, 2015. company’s new smart- Shares in Whirlpool vault-
for the sell-off in the tech- watch was doing. Apple’s ed $12.15, or 7.3 percent,
nology sector. (AP Photo/Mark Lennihan) latest results also stirred in- to $178.36, while Chipotle
“Apple is the biggest pub- vestor concerns about a gained $52.75, or 7.8 per-
licly traded company in the up 9.2 percent, while the million loss driven by soar- slowdown in the growth of cent, to $725.82.
world, so it’s going to have iPhone sales. The stock fell Investors have their eye on
a big impact on the indi- S&P 500 is up 2.7 percent ing commissions paid to its $5.53 to 125.22. company earnings and
ces,” noted Erik Davidson, and the Dow is essentially partners and flat sales. The Despite its size, Apple’s lat- outlooks to get a sense of
chief investment officer at flat. stock slipped 49 cents, or est results don’t necessarily how the economy is doing.
Wells Fargo Private Bank. speak to the overall health Of the roughly 104 com-
The slide wasn’t that broad, Five of the 10 sectors in the 1.2 percent, to $39.24. of the economy or corpo- panies that have reported
however. Financial and rate America, Davidson so far, about 70 percent of
utilities stocks were among S&P 500 index declined, Microsoft’s slide was more said. them delivered results that
the big gainers. And home- “Do iPhone sales tell us beat Wall Street estimates,
builders got a boost from a led by a 1.6 percent drop pronounced at 3.7 per- a lot about the broader according to S&P Capital
report indicating U.S. home in technology stocks. Finan- cent. The company re- economy and the markets IQ.
sales surged last month to cials led the gainers, rising ported a hefty quarterly or does it tell us more about McDonald’s and Caterpil-
the fastest pace in more Apple? It probably tells us lar are among the other
than eight years. 0.7 percent. loss stemming from an ex- more about Apple,” David- big-name companies re-
The Dow Jones industrial son said. “In general, you porting earnings on Thurs-
average slid 68.25 points, have a U.S. economy that day.
or 0.4 percent, to 17,851.04. is recovering. Earnings are In a light week of econom-
The Standard & Poor’s 500 going fairly well.” ic news, the market got
index lost 5.06 points, or 0.2 Several other companies, encouraging data on the
percent, to 2,114.15. including consumer re- housing market.q
Military fuel tanker delays pull down Boeing’s 2Q earnings
SCOTT MAYEROWITZ after-tax charge Boeing and development of large, from $2.24 during the same revenue growth,” the com-
AP Airlines Writer took on the Air Force’s complicated products,” period last year. pany’s new CEO, Dennis
NEW YORK (AP) — Aero- KC-46 Pegasus Tanker, a said Edward Jones analyst That increased revenue Muilenburg said in a state-
space giant Boeing Co. midair refueling plane Boe- Jeff Windau. “The key issue mostly came from faster ment.”
saw its earnings plunge by ing is building off its com- is that the delivery sched- production of its commer- Tuesday night, right before
a third in the second quar- mercial 767 jet frame. The ule be maintained.” cial planes. Boeing takes Wednesday’s earnings
ter because of repeated company said it has faced To date, Boeing has a deposit when a jet order release, Boeing did an-
delays with a military fuel higher engineering and booked $1.26 billion in is made but doesn’t col- nounce some good news:
tanker. manufacturing costs to charges related to the lect the bulk of the cash FedEx is ordering 50 new
The Chicago-based com- complete certification and tanker project, according until a jet is delivered. The 767 cargo freighters with
pany on Wednesday post- initial production of the mil- to Wolfe Research. company delivered 197 the option to purchase
ed a $1.11 billion net profit, itary aircraft. The airplane builder posted commercial jets during the more.
down from $1.65 billion “While last week’s tanker revenue of $24.54 billion in quarter, up from 181 during The 767 is nearing the end
during the same period last charge announcement the period, up 11 percent the same period last year. of its production cycle, re-
year. was disappointing, we real- from the same period last “Record commercial air- placed by the more fuel-
The bulk of that drop is at- ize that unexpected issues year. The profit worked plane deliveries to custom- efficient 787, also known as
tributed to a $536 million can arise during the design out to $1.59 a share, down ers worldwide drove solid the Dreamliner.
