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BUSINESS A25
Thursday 24 March 2016
Stocks slip, led by energy
and materials companies
ALEX VEIGA composite dropped 52.80 fell far short of what analysts
AP Business Writer points, or 1.1 percent, to
Falling prices for oil and 4,768.86. were expecting. The athlet-
other commodities pulled The Dow is now up 0.5 per-
U.S. stocks modestly lower cent for the year, while the ic apparel maker also gave
on Wednesday, nudging S&P 500 is down 0.4 per-
the Standard & Poor’s 500 cent and the Nasdaq is off a weaker-than-anticipated
index slightly into the red 4.8 percent.
for the year and putting it Major U.S. indexes moved outlook for 2016. The stock
on course to snap a five- lower early on as falling
week winning streak. prices for oil, natural gas, dropped $2.46 to $62.44.
Energy and mining compa- precious metals and other
nies led the decline, while commodities put traders in Krispy Kreme Doughnuts slid
consumer staples and a selling mood.
utilities stocks bucked the Chesapeake Energy lost 69 7.1 percent after the chain
broader downward trend. cents, or 14.3 percent, to
Disappointing earnings $4.13, while Marathon Oil reported disappointing
from several companies, in- fell $1.12, or 9.9 percent,
cluding Nike, also weighed to $10.19. Southwestern En- fourth-quarter revenue and
on the market. Oil slumped ergy slid 73 cents, or 9 per-
4 percent. cent, to $7.35. a weaker-than-expected
Trading was muted ahead Mining companies also
of Friday, when markets will slumped, including New- annual profit forecast. The
be closed for the Good Fri- mont Mining, which fell
day holiday. $2.41, or 8.8 percent, to stock shed $1.09 to $14.29. Trader Benedict Willis, left, works on the floor of the New York
Investors can expect simi- $24.98, while Freeport-Mc- Stock Exchange, Friday, March 18, 2016.
larly low trading volume on MoRan lost $1.24, or 11.28 Software maker Red Hat
Thursday. percent, to $9.75. Associated Press
The Dow Jones industrial A batch of company earn- also declined, losing 4.2
average fell 79.98 points, ings also gave investors
or 0.5 percent, to 17,502.59. reasons to sell. percent after it reported
The S&P 500 index lost 13.09 Nike, one of the 30 stocks in
points, or 0.6 percent, the Dow, fell 3.8 percent af- disappointing forecasts. index lost ground, with en- however. Exelon slipped
to 2,036.71. The Nasdaq ter reporting revenue that ergy stocks sliding the most, 28 cents, or less than 1 per-
The stock fell $3.38 to 2.1 percent. The sector is cent, to $34.72.
down about 18 percent European stocks were
$72.33. over the past 12 months. mixed following Tuesday’s
Utilities and consumer sta- deadly bombings in Bel-
Most homebuilders ples stocks moved higher. gium.
Not all companies got Germany’s DAX rose 0.3
slumped after the Com- caught up in the broad percent, while France’s
decline. Pepco Holdings CAC 40 fell 0.2 percent.
merce Department re- vaulted $5.69, or 26.8 per- Britain’s FTSE 100 edged
cent, to $26.93 after a up 0.1 percent. Belgium’s
ported that new-home Washington D.C. regulator main index increased 0.1
approved Pepco’s $7 bil- percent.
sales rose only 2 percent lion sale to rival utility Ex- In Asia, markets mostly
elon. The deal will only go fell moderately. Japan’s
in February to a season- through if Exelon agrees benchmark Nikkei 225 fell
to the regulator’s terms, 0.3 percent.
ally adjusted annual rate of
512,000. Sales in the open-
ing two months of 2016 are
running slightly below last
year’s pace. Beazer Homes
USA fell the most, sliding 63
cents, or 7.2 percent, to
$8.07. All told, eight of the
10 sectors in the S&P 500
Starbucks to offer prepaid cards to boost rewards program
NEW YORK (AP) — Star- ny’s prepaid card at the paid cards. Chase said the
bucks says it will introduce same rate that they do for card will have three fees;
a prepaid card by the end purchases at cafes. He said a $5 fee for a rush card
of the year that lets people the rate of rewards for the replacement, a 3 percent
earn points for its rewards prepaid card would be an- foreign transaction fee,
program. The Seattle- nounced at a later date. and a $75 legal process-
based company plans A representative for Chase ing fee, which would be
to offer the card through said the Starbucks prepaid triggered if the bank was
Chase and says people card will not have monthly required to hold or pay out
would be able to use it service or reloading fees, funds from the account as
wherever Visa is accepted. which often come with pre- a result of a legal action.
It’s the latest move by
Starbucks Corp. to con- Kevin Johnson, president and chief operating officer of Star-
vince people to sign up bucks Corp., holds up one of the coffee company’s new pre-
for its loyalty program by paid Visa debit cards, Wednesday, March 23, 2016, at the cof-
giving them more ways to fee company’s annual shareholders meeting in Seattle.
earn rewards “stars” out-
side of its cafes. The com- Associated Press
pany also previously an-
nounced deals that entail more. free drink or food item after
selling its stars to The New Last month, Starbucks an- earning 125 stars.
York Times, Spotify and Lyft. nounced an overhaul of By diminishing the unit val-
Those companies would its rewards program that ue of a star, Starbucks Chief
then distribute the stars as hinted at plans to further Strategy Officer Matthew
incentives to their own cus- expand the universe for Ryan has said the com-
tomers, Starbucks has said. its stars. Previously, people pany would have more
Starbucks said Wednesday earned a star for each flexibility to award stars for
it already has more than visit, and got a free drink “very small transactions.”
12 million active members or food item after 12 visits. Kevin Johnson, chief oper-
for its loyalty program in Starting April 12, people will ating officer for Starbucks,
the U.S., and that people earn two stars for every dol- said people would not
who sign up tend to spend lar they spend, and get a earn stars on the compa-
