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BUSINESSTuesday 26 January 2016
Stocks slip as oil skids 6 percent, hitting energy companies
MARLEY JAY A bicyclist rides on Wall Street in front of Federal Hall in New to $73.98 and Chevron fell in the last four.
AP Markets Writer York’s Financial District, Monday, Jan. 25, 2016. U.S. stocks fell $2.65, or 3.2 percent, to The shaky global outlook
NEW YORK (AP) — U.S. Monday as the price of oil slumped again, giving up some of the $80.89. Chesapeake Ener- helped push companies to
stocks fell Monday as the ground it gained late last week. gy lost 56 cents, or 16 per- make a slew of big deals
price of oil slumped again, cent, to $2.95. last year, and that trend
giving up some of the (AP Photo/Richard Drew) Paper and packaging continued as Tyco Interna-
ground it gained late last companies fell on con- tional and Johnson Con-
week. That forced energy slowing down. Companies U.S. crude fell $1.85, or 5.7 cerns about product prices trols said they will combine.
companies lower. that mine metals, especial- percent, to $30.34 a barrel falling. WestRock gave up Tyco makes fire suppression
The stock market opened ly copper, face the same in New York. Brent crude, $5.63, or 14.9 percent, to systems and Johnson Con-
lower and stayed in the problem. Low oil prices are a benchmark for interna- $32.11 and International trols makes ventilation sys-
red all day. The selling ac- also hurting banking stocks tional oils, lost $1.68, or 5.2 Paper declined $3.87, or tems, auto seating and car
celerated in the last hour because some banks hold percent, to $30.50 a barrel 10.6 percent, to $32.58. batteries. Both stocks have
of trading. The biggest large amounts of loans in London. U.S. oil jumped Mark Wilde, managing di- struggled as investors wor-
losses came in the energy from energy companies, 9 percent Friday after set- rector BMO Capital Mar- ried about their growth.
sector and companies and investors fear they ting 12-year lows earlier kets, said stocks in that sec- Tyco jumped $3.56, or 11.6
that make chemicals and may not get paid back. in the week. Exxon Mobil tor are falling because an percent, to $34.15, the big-
paper goods. The Dow The price of benchmark lost $2.59, or 3.4 percent, influential trade publication gest gain in the S&P 500.
Jones industrial average estimated that prices for Johnson Controls lost $1.39,
fell 208.29 points, or 1.3 containerboard, an impor- or 3.9 percent, to $34.21.
percent, to 15,885.22. The tant product, fell sharply in Companies spent a record
Standard & Poor’s 500 in- January. “I think it confirms $5 trillion on acquisitions
dex shed 29.82 points, or people’s fears,” Wilde said. and other deals last year, a
1.6 percent, to 1,877.08. “Falling prices are going big jump from 2014. While
The Nasdaq composite in- to mean lower earnings.” few deals have been an-
dex lost 72.69 points, or 1.6 Friday was the best day nounced in the first weeks
percent, to 4,518.49. for the S&P 500 since early of 2016, business technolo-
Plunging oil prices have December. It was the big- gy company Intralinks that
been decimating profits gest gain for the Nasdaq will change. It thinks global
at energy companies and composite index since Sep- deal value will rise 3.5 per-
getting investors worried tember. That helped stocks cent, to a total of almost
that the global economy is make their first weekly gain $2.3 trillion.q
Breakfast bump:
McDonald’s US sales jump 5.7 percent
CANDICE CHOI months of the year. more than 36,000 locations
Associated Press It’s the second straight around the world, is work-
NEW YORK (AP) — Breakfast quarter of domestic growth ing to turnaround its busi-
around the clock is helping as McDonald’s fights to win nessunder CEO Steve East-
shake McDonald’s out of its back customers, and the erbrook, who will mark one
slump. best showing since early year on the job in March.
The world’s biggest ham- 2012. Globally, sales rose 5 One of the biggest chang-
burger chain says the percent at established lo- es under Easterbrook was
launch of an all-day break- cations. to make the Egg McMuffin
fast menu and unseason- Shares headed for an all- and other select breakfast
ably warm weather helped time high before the mar- foods available past nor-
lift sales by 5.7 percent in ket opened Monday. mal breakfast hours in the
the U.S. for the final three McDonald’s, which has U.S. — an option many cus-
tomers had long desired.
The changes come after
McDonald’s executives
conceded they failed to
keep up with changing
tastes and saw sales slide.
In 2015, guest counts at
established McDonald’s
locations in the U.S. fell 3
percent.
That followed a 4.1 percent
drop the previous year.
Guest counts declined
globally as well during the
period.
The latest sales jump in the
U.S. marks the best show-
ing since the first quarter
of 2012, when compara-
ble-stores sales rose 8.9
percent.q
