Page 25 - ATD09APRIL2016

BUSINESS A25
Saturday 9 April 2016

Indexes inch higher as oil prices jump, but retailers skid

MARLEY JAY results,” he said.
Pain drug maker De-
AP Markets Writer pomed rose after activist
investment firm Starboard
NEW YORK (AP) — A surge Value disclosed a 9.8 per-
cent stake in the com-
in the price of oil sent en- pany, making it one of
Depomed’s largest share-
ergy companies higher on holders. Last year Hori-
zon Pharma tried to buy
Friday, but U.S. stocks got Depomed for about $1.1
billion, or $33 per share,
only a small boost over- but Depomed fended off
that effort and Horizon
all as retailers suffered big dropped it in November.
Depomed’s stock jumped
losses. $1.95, or 13 percent, to
$16.95.
Stocks rose in morning trad- Biotech drugmakers re-
treated. Regeneron Phar-
ing as oil prices climbed, maceuticals lost $13.43, or
3.2 percent, to $404.94 and
and the Dow Jones indus- Biogen declined $2.21, or
0.8 percent, to $270.83.
trial average jumped more Those stocks logged their
biggest gain in almost five
than 150 points early on. years on Wednesday, but
have suffered big losses
Retailers skidded as inves- since July.
Specialty glass maker
tors worried about reports Corning said it will buy op-
tical components maker
from Gap and L Brands. Alliance Fiber Optic Prod-
ucts for $18.50 per share,
Biotech drugmakers re- or $305 million. Alliance
stock surged $2.99, or 19.3
turned some of their gains percent, to $18.45. Corning
dipped 13 cents to $20.53.
from earlier in the week. Ruby Tuesday tumbled
62 cents, or 11.9 percent,
Oil prices climbed about to $4.60. The restaurant
chain’s earnings were dis-
7 percent this week as appointing and it cut its
forecasts. The company
the dollar got weaker. The Traders gather at the post that handles Allergan on the floor of the New York Stock Exchange. — A also said its chief financial
price of oil has seesawed surge in the price of oil sent energy companies higher on Friday, but U.S. stocks got only a small officer will leave to take a
as investors hope energy boost overall as retailers suffered big losses. job with another company.
producing companies will The price of gold rose $6.30
cut production. Experts (AP Photo/Richard Drew) to $1,242.50 an ounce. q

aren’t sure the gains will $2.46, or 6.6 percent, to for oil will go up. from athletic apparel to

last. $39.72 a barrel in New York. Gap said all three of its ma- handbags to watches to

“If this fizzles out in a week Brent crude, used to price jor chains saw their sales department store chains.

or so I think you could see international oils, gained drop in March, and added Macy’s gave up 94 cents,

oil prices roll over,” said $2.51, or 6.4 percent, to that levels of product inven- or 2.3 percent, to $39.68.

Steve Chiavarone, associ- $41.94 a barrel in London. tory are high, which could Under Armour lost 87 cents,

ated portfolio manager for ConocoPhillips picked up lead to bigger discounts or 2 percent, to $43.54.

Federated Investors. 92 cents, or 2.3 percent, to that will hurt its profits. Analyst Simeon Siegel of

The Dow picked up 35 $41.23 and Murphy Oil ad- Meanwhile L Brands said it Nomura Securities said

points, or 0.2 percent, to vanced $1.25, or 5.1 per- will restructure its Victoria’s Gap and L Brands both re-

17,576.96. The Standard cent, to $25.69. Secret brand and eliminate ported decent sales, and

& Poor’s 500 index rose Oil prices recovered this about 200 corporate jobs. their problems don’t sug-

5.69 points, or 0.3 percent, week, and Chiavarone said Gap plunged $3.83, or 13.8 gest big trouble for retailers

to 2,047.60. The Nasdaq that’s partly because the percent, to $23.85 and L in general.

composite index eked out Federal Reserve is stressing Brands stock lost $3.65, or “Everything gets lumped

a gain of 2.32 points, or that it will raise interest rates 4.3 percent, to $80.50. The in together,” he said. He

less than 0.1 percent, to slowly. That makes the dol- companies’ statements added that retail stocks

4,850.69. lar weaker, and investors and their losses hurt com- have made big gains re-

Benchmark U.S. crude rose think that means demand panies that sell everything cently. “For the past few

weeks we’ve had this in-

Starboard attempts a coup at Depomed credible rally that really
wasn’t predicated on any

TOM MURPHY ark, California, company. (board) to stymie strategic Address : Malmok Weg 39
AP Business Writer Depomed said in response interest in acquiring De- (near entrance to Tierra Del Sol),
Activist investor Starboard Friday that its board is com- pomed,” Smith wrote.
Value is bringing its next mitted to creating value for Starboard was particularly 5 bedroom ,4 bath house w/separate apartment,
boardroom coup attempt all shareholders, and it said incensed with Depomed’s
to Depomed, asking share- stock owners should take rejection of a takeover bid Date:Sunday April 10 Time : 2pm-4pm.
holders to replace all the no action. by Dublin’s Horizon Pharma Price USD $ 550,000.00.
pain drugmaker’s directors Starboard executive Jef- last year. Smith noted that
with those of its own choos- frey C. Smith called De- Horizon’s initial offer price GREAT LOCATION FOR INVESTMENT OR FAMILY HOME,
ing. Shares of Depomed pomed shares deeply un- of $29.25 per share would
spiked 14 percent Friday. dervalued in a letter to the have represented an all-
Starboard is nominating six drugmaker’s board and time high at the time for
people for the drugmak- CEO Jim Schoeneck. Smith a stock that closed at $15
er’s board and searching also said Starboard was on Thursday. He also not-
for additional candidates, concerned with actions ed that Depomed shares
accusing the current di- taken by the board. topped $33 last summer,
rectors of being more con- “Specifically, we have following Horizon’s final of-
cerned with entrenching significant concerns re- fer.
themselves than improving garding serious corporate Starboard did not name its
shareholder value. governance deficiencies, board nominees, referring
questionable capital allo- to them only as “Starboard
Starboard, of New York, cation decisions, and egre- Value investment profes-
has acquired a nearly 10 gious actions taken by the sionals.” q
percent stake in the New-