Page 24 - atoday sept 30

A24

BUSINESSWednesday 30 September

Health care stocks push S&P to first gain in six days Ralph Lauren to
step down as CEO,
STEVE ROTHWELL thought have hurt the mar- third quarter. sell-off in biotech stocks
AP Business Writer ket. Investors are also pre- The Dow Jones industrial given how sharply valua- Larsson fills void
NEW YORK (AP) — A re- occupied with the outlook average climbed 47.24 tions have climbed in re-
bound in the health care for U.S. interest rates. Fed- points, or 0.6 percent, to cent years. A. D’INNOCENZIO
sector helped steady eral Reserve policymakers 16,049.13 The Nasdaq “The biotech industry was AP Retail Writer
stocks on Tuesday, push- have said they will likely composite dropped 26.65 concerning to us,” So- NEW YORK (AP) — Ralph
ing the Standard & Poor’s raise interest rates before points, or 0.6 percent, to rensen said. “It clearly had Lauren is stepping down
500 index to its first gain in the end of the year. 4,517.32. bubble-like characteristics as CEO of the fashion and
six days. Some investors see a rate Biotechnology stocks have with a lot of speculative home decor empire that
Drugmakers including Ed- increase as a vote of con- been a weak spot for the money moving into it and he founded nearly 50 years
wards Lifesciences and fidence in the U.S. econo- stock market recently. The a lot of IPOs.” ago.
Medtronic were among my. Others think it would sector has slumped on Yahoo was among the The New York-based com-
the biggest gainers as the be a mistake to raise bor- concern that lawmakers stronger stocks on Tues- pany announced Tuesday
industry group rebounded rowing costs just as the will seek to implement new day. that Stefan Larsson, who
The stock rose 66 cents, or has been the global presi-
Specialist Peter Giacchi, right, works at his post on the floor of the New York Stock Exchange. 2.4 percent, to $28.26 after dent of Gap’s low-price
the company said that it Old Navy chain for three
A rebound in the health care sector helped steady stocks on Tuesday, pushing the Standard & still planned to spin off its years, will succeed him. The
stake in China’s Alibaba change will be effective in
Poor’s 500 index to its first gain in six days. (AP Photo/Richard Drew) Group. Yahoo is moving November, and Larsson will
ahead with the plan even report to Lauren who will
from a sharp slump the global economy is show- regulations to curb price though the IRS has yet to continue to drive the com-
rule on the tax payments pany’s vision and strategy
day before. ing signs of flagging. hikes in the industry. that the company could as executive chairman and
face from the gains on its chief creative officer.
The gains for the overall “The Fed is still, as it has On Tuesday, the Nas- initial investment. As global president of Old
Investors also got some Navy for three years, Lars-
market were small. Stocks been for over a year now, daq Biotechnology Index good news on the econ- son has remade the busi-
omy from a report show- ness to be a bright spot in
flitted between modest the number one thing edged down 0.6 percent, ing that American con- Gap’s portfolio. Prior to his
sumers were feeling more tenure at Old Navy, Larsson
gains and losses for most that’s overriding the mar- its eighth straight day confident this month. The was part of an executive
Conference Board, a busi- team at Swedish cheap
of the day before closing ket,” said JJ Kinahan, chief of losses. The index has ness research group, said chic fashion chain H&M for
Tuesday that its consumer 15 years that increased an-
slightly higher. strategist at TD Ameritrade. slumped 27 percent from confidence index rose to nual revenue from $3 billion
103 in September after to $17 billion. During that
The market remains close “There’s just so much skit- its peak in July, putting it in surging in August to 101.3. time, H&M’s operations
The September reading grew to 44 countries from
to its lows for the year and tishness, people just don’t a bear market, Wall Street was the highest since Jan- 12.
uary. “My job is to think always
is set to close out Septem- have confidence.” terminology for a drop of The price of oil rose on ex- about the future of our
pectations that the Energy company and how to
ber with its worst quarterly The S&P 500 rose 2.32 points, 20 percent or more. Department will report a move it forward,” Ralph
slowdown in U.S. crude Lauren said in a statement.
performance in four years. or 0.1 percent, to 1,884.09. Brad Sorensen, a director production when it releas- “Stefan Larsson is excep-
es its monthly petroleum tionally talented, and he
Concerns that China’s The index slumped 50 at the Schwab Center for supply report Wednesday. will bring our company a
U.S. crude rose 80 cents to fresh and exciting global
economy is slowing more points the day before and Financial Research, said close at $45.23 a barrel in perspective.”
New York. Brent Crude, a Ralph Lauren also an-
rapidly than previously is down 8.7 percent for the he wasn’t surprised by the benchmark for internation- nounced that Jackwyn
al oils used by many U.S. Nemerov, president and
refineries, rose 89 cents to chief operating officer,
close at $48.23 a barrel in will retire in November, at
London.q which time she will become
an adviser to the company.
Rolls Royce, American Airlines shutting down plant The news comes as Ralph
Lauren, which generated
FORT WORTH, Texas (AP) other locations, and the that it accepted a Rolls using one of the engine sales of $7.5 billion in the
— Rolls Royce and Ameri- plant is expected to close Royce request to dis- types in 2004, and work on latest fiscal year March 28,
can Airlines are shutting by January. solve the joint venture another type is falling as has been expanding its
down a Texas plant that American says it will pro- and close the Texas Aero American retires its Boeing luxury business while beef-
maintains and repairs air- vide job opportunities Engine Services plant in 757 jets. ing up its online presence.
craft engines, citing falling for the 500 plant workers Fort Worth. The joint ven- Shares of American’s par- In the past two years, the
demand for the work. who are represented by ture was created in 1998 ent, American Airlines company has added three
The plant is operated a union and will create to work on certain Rolls Group Inc., rose 62 cents new brands — Polo for
by a 50-50 joint venture more than 100 union jobs Royce engines used on to $39.70 in midday trad- Women, Polo Sport and
between the two com- in the Dallas-Fort Worth American Airlines jets. ing Tuesday. The engine Denim and Supply.
panies and employs 600 area to offset the closure. However, work declined maker is a unit of Rolls- Gap Inc., based in San
people. Work will shift to American said Tuesday after American stopped Royce Holdings PLC.q Francisco, said Jill Stan-
ton would lead Old Navy
in the interim while it
searches for a permanent
replacement.q