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BUSINESSSaturday 19 December 2015
Wall Street tumbles on global economic uncertainty LifeLock is paying
$100M to clients
MARLEY JAY fell short of what investors tuous week slightly lower. is what you get,” he said. to settle charges
AP Markets Writer were hoping for. Another Stocks had rallied over the The global market went into
NEW YORK (AP) — Stocks drop in energy prices sent first three days and jumped a similar slide two weeks WASHINGTON (AP) — Life-
plunged across all sectors oil stocks lower again, and Wednesday after the Fed- ago, when the European Lock is paying $100 mil-
in the heaviest trading of worries about weak global eral Reserve raised interest Central Bank ramped up lion to consumers to settle
the year Friday as enthusi- growth weighed on ship- rates for the first time in al- its stimulus efforts but didn’t charges by federal regu-
asm over a long-awaited ping and other transporta- most a decade. The move do nearly as much as ex- lators that it failed to take
increase in U.S. interest tion companies. was a vote of confidence pected. Stocks rallied after adequate measures to
rates faded. Several other The Dow Jones industrial in the U.S. economy. But ECB President Mario Draghi protect customers’ per-
negative factors com- average dropped 367.29 over the next two days said the bank is ready to sonal data under a court
expand its stimulus pro- order.
Trader Timothy Nick works on the floor of the New York Stock Exchange. Stocks plunged across gram further if needed. The Federal Trade Commis-
Those slumps show that in- sion announced the settle-
all sectors in the heaviest trading of the year Friday as enthusiasm over a long-awaited increase vestors will continue keep- ment this week with the
ing an eye on the words provider of identity-theft
in U.S. interest rates faded. (AP Photo/Richard Drew) and deeds of central banks protection. The agency
in struggling Europe and says it’s the largest settle-
bined to give the market points, or 2.1 percent, to stocks were hit by some Japan as well as the U.S. ment it has won in this type
its second big loss in a row, 17,128.55. The S&P 500 in- of the worries that have for the foreseeable future. of enforcement case.
bringing the indexes lower dex fell 36.34 points, or 1.8 dogged them all year, like The Federal Reserve had The 2010 order by a federal
for the week. Bank stocks, percent, to 2,005.55. The weakness in the Chinese kept interest rates near zero court required LifeLock Inc.
which investors had bid Nasdaq composite sank economy, slowing global for seven years. Fed Chair to secure customers’ data,
up in hopes they would 79.47 points, or 1.6 percent, growth, and skidding pric- Janet Yellen emphasized such as credit card and So-
become more profitable to 4,923.08. All 10 Standard es for energy and metals. that despite the boost, cial Security numbers, and
as loan rates climbed, & Poor’s 500 sectors fell. While the Bank of Japan interest rates will remain to avoid false advertising
fell the most. Technology U.S. stock trading was even plans to spend a bit more low for some time. That claims. The order resulted
shares suffered more de- more volatile than usual on exchange-traded pleased investors overall, from an action brought
clines as a bad December Friday because of the si- funds for companies that but it eventually put pres- by the FTC and attorneys
got worse for Apple. The multaneous expiration of increase hiring and invest- sure on bank stocks. Banks general in 35 states, alleg-
world’s most valuable pub- several kinds of futures ment, investors were hop- will benefit from higher in- ing that LifeLock used false
licly traded company sank and other contracts that ing for more, according to terest rates and have and claims to promote its ser-
again, bringing its monthly investors use to place bets Ryan Larson, head of U.S. have rallied over the last vices. The company paid
loss to 10 percent. Over- on indexes and individual equity trading for RBC few months, but the initial $12 million in that settle-
seas, Japan’s market sank stocks. As a result Friday Global Asset Manage- benefits won’t be great. ment, which went mostly
after that country’s cen- was the busiest trading day ment. “They were looking Goldman Sachs dropped to customer refunds, and
tral bank made changes of the year for stocks. for more, and when the $7.12, or 3.9 percent, to agreed to make changes
to a stimulus program that The market ended a tumul- market’s disappointed, this $175.49 and ETrade Finan- to its business practices.
cial lost $1.13, or 3.8 per- The FTC said that LifeLock
cent, to $28.82. Citigroup violated the order by fail-
gave up $1.63, or 3.1 per- ing to maintain “a compre-
cent, to $51.21. hensive information-securi-
Tech stocks also slumped. ty program” and to avoid
Apple fell $2.95, or 2.7 per- deceptive advertising.
cent, to $106.03. The stock LifeLock is based in Tempe,
has fallen 10 percent in Arizona. Company co-
December and has risen founder and CEO Todd
only three days this month. Davis used to put his own
Microsoft fell $1.57, or 2.8 Social Security number on
percent, to $54.13. business cards and com-
Transportation stocks also pany trucks to advertise
fell. Shares of J.B. Hunt LifeLock’s services.
Transportation surrendered LifeLock noted Thursday
$1.96, or 2.7 percent, to that it neither confirms nor
$70.62 and Ryder System denies the government’s
lost $2.59, or 4.6 percent, to allegations under terms of
$54.08.q the new settlement. Once
it is approved by the court,
BlackBerry’s results beat expectations, shares rise the settlement will help
bring to a close the FTC
WATERLOO, Ontario (AP) on sale last month. More $148 million, or 24 cents per Revenue fell 31 percent case as well as a class-ac-
— BlackBerry reported carriers are expected to share, in the same quarter from a year ago to $548 tion lawsuit, the company
quarterly results Friday that offer the phone around a year ago. million in the period, which said.
beat Wall Street expecta- the world in the next sev- Losses, adjusted for non- also beat Street forecasts. “The allegations raised
tions, even as revenue fell eral quarters, he said. The recurring costs and amor- Nine analysts surveyed by by the FTC are related to
sharply. smartphone is the compa- tization costs, came to 3 Zacks expected $485.2 mil- advertisements that we
Shares of the smartphone ny’s first to run on the An- cents per share. But that lion. no longer run and poli-
maker jumped 15 percent droid operating system. was better than Wall Street Shares of BlackBerry Ltd. cies that are no longer in
in afternoon trading. The Canadian company expectations. The average rose $1.17 to $8.97 Friday place,” LifeLock said in
CEO John Chen said reported a loss of $89 mil- estimate of 12 analysts sur- afternoon. Its shares are a statement. “The settle-
BlackBerry’s latest device, lion, or 17 cents per share, veyed by Zacks Investment still down about 18 percent ment does not require us to
the Priv, has been “well in its fiscal third quarter, Research was for a loss of since the beginning of the change any of our current
received” since it went compared with a loss of 15 cents per share. year.q products or practices.q
