Page 25 - ARUBA TODAY

BUSINESS Friday 28 July 2017
A25

Falling tech stocks pull US indexes off their record highs

expected and gave a fore- AstraZeneca sank after it
cast for earnings this quar- said its lung cancer drug
ter that fell short of some Imfinzi did not reach its
analysts’ forecasts. Its stock goals in a clinical trial. U.S.-
lost $9.18, or 7.2 percent, to listed shares of AstraZen-
$119.02. eca lost $5.06, or 14.9 per-
Close to half of the com- cent, to $28.88.
panies in the S&P 500 have Industrial companies also
reported their earnings for struggled, and Johnson
the latest quarter, and the Controls tumbled $3.18,
results have been mostly or 7.3 percent, to $40.14.
encouraging. Not only are It reported weaker-than-
profits growing, so are reve- expected revenue for the
nues for many companies. latest quarter and trimmed
But expectations were high the upper end of the range
coming into the reporting for its forecast for full-year
season, and shares rallied earnings per share.
accordingly. Now, com- On the opposite side were
panies’ stocks are getting telecom stocks, which ral-
less of a boost than usual lied for a second straight
when they report earnings day. Verizon Communica-
that are above analysts’ tions had its best day in
forecasts, said Nate Thooft, more than eight years after
Trader Ryan Falvey, center, works on the floor of the New York Stock Exchange, Wednesday, July senior portfolio manager it reported more revenue
26, 2017. Stocks are opening higher on Wall Street as several big companies including Boeing and
AT&T report solid results. at Manulife Asset Manage- than analysts expected.
(AP Photo/Richard Drew) ment. Many more customers
“And for those few that are added wireless phones
By STAN CHOE Dow Jones industrial aver- performance among the disappointing, they’re get- than Wall Street had fore-
AP Business Writer age was an exception, and 11 sectors that make up ting penalized significant- cast. Verizon jumped $3.41,
NEW YORK (AP) — U.S. stock it rose 85.54, or 0.4 percent, the index. ly,” Thooft said. Stock pric- or 7.7 percent, to $47.81.
indexes pulled back from to 21,796.55 to set another Software company CA es are dropping more than Verizon’s big day follows
their record highs Thursday all-time high. had the biggest loss in the usual when companies fall AT&T’s, which had its big-
after an afternoon swoon Stocks had been on track S&P 500 and fell $3.55, or short of expectations, he gest move since 2009 on
for technology companies for another quiet day of 10.2 percent, to $31.10. It said. Wednesday after it report-
helped overshadow an- gains in a year full of them, began to plunge around Twitter dropped $2.77, or ed stronger-than-expected
other big day for telecoms. but Apple, Microsoft and noon, following reports 14.1 percent, to $16.84. earnings. Over the last two
The Standard & Poor’s 500 other technology stocks that merger talks between It reported better-than- days, AT&T has climbed 8.8
index fell 2.41 points, or 0.1 suddenly changed direc- it and BMC Software have expected quarterly re- percent, and Verizon is up
percent, from its record set tion in the afternoon. After ended. sults, but it also said that its 8.7 percent.
a day earlier to close at being up as much as 0.6 F5 Networks was another monthly average user base Facebook climbed $4.83,
2,475.42. The Nasdaq com- percent in morning trading, tech stock that helped lead did not grow from the prior or 2.9 percent, to $170.44
posite likewise fell from a tech stocks in the S&P 500 the S&P 500 lower. It report- quarter. after it reported stronger-
record, down 40.56, or 0.6 finished the day down 0.8 ed weaker revenue for the Health care stocks were than-expected earnings.
percent, to 6,382.19. The percent. It was the worst latest quarter than analysts also weak, and drugmaker q

Online-shopping energizes UPS earnings in second quarter

By DAVID KOENIG compared with a year package-delivery business seas revenue. to deliver single packages
AP Business Writer ago, and tax benefits that by 8 percent. Despite the The conservative forecast to homes costs more than
DALLAS (AP) — If you buy helped fourth-quarter re- better-than-expected sec- disheartened investors, bigger shipments to busi-
diapers online later this sults last year won’t be ond-quarter profit, UPS on who drove shares down 4 nesses. If the delivery com-
year, UPS begs you to repeated. UPS shares fell Thursday stuck by its guid- percent, to $107.77. panies make a mistake in
avoid placing the order 4 percent, closing down ance for full-year earnings. The holiday season is al- forecasting demand, they
right around Thanksgiving $4.50 at $107.79. That could reflect con- ways critical for shippers. can wind up unable to
or Christmas. United Parcel Service Inc. cern that the June quarter The growth of online shop- carry the load or, on the
To drive home the point, and rival FedEx Corp. bump was exaggerated by ping has filled their planes flipside, overspend on sea-
the company with the big are riding a boom in on- fuel surcharge and work- and trucks but also raised sonal workers and extra
brown trucks will impose line shopping. It’s what ers compensation items, costs. Dispatching trucks transportation.q
special surcharges for ship- helped to lift UPS revenue and that currency rates will
ments during peak holiday in the crucial U.S. domestic continue to reduce over-
weeks.
UPS executives gave more
details about their plan-
ning for peak season on
Thursday as they discussed
second-quarter earnings,
which rose 9 percent to
$1.38 billion.
The profit topped Wall
Street expectations, but
UPS said earnings in the
third quarter will be flat