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BUSINESSTuesday 24 November 2015
After best week of 2015, markets fade after early gains
MARLEY JAY dex fell 2.44 points, or 0.1 through, it will be one slipped after it reported a
AP Markets Writer percent, to 5,102.48. of the largest corporate
NEW YORK (AP) — Stocks The S&P 500 index rose 3.3 transactions in history. It’s smaller quarterly profit and
gained ground early Mon- percent last week, lifted by also the biggest deal in
day as they came off their good news from retailers 2015, a year that has been less revenue than analysts
best week in 2015, but fad- and tech stocks. That was filled with big mergers. Just
ed in the afternoon and its largest weekly gain since two weeks ago, Budweiser had forecast. The compa-
sustained small losses for last December. However, maker AB InBev agreed to
the day. it wasn’t quite enough to buy rival beer maker SAB- ny said sales of new games
Technology stocks fell cancel out the big loss the Miller for $107 billion.
more than the rest of the S&P suffered the previous Pfizer gave up 85 cents, or and game systems weren’t
market. Pfizer and Allergan week. 2.6 percent, to $31.33 and
slipped after announcing a Pfizer, the maker of Viagra Allergan fell $10.74, or 3.4 as good as it expected,
deal to combine and cre- and Lipitor, said it will buy percent, to $301.72. The
and sales were also hurt
by delays in opening some
stores. Its shares slid $1.65, Financier Carl Icahn poses for
photos in New York.
or 4.2 percent, to $37.61.
(AP Photo/Henny Abrams)
Video game maker Elec-
Carl Icahn claims
tronic Arts fell after Game- AIG CEO unwilling
Stop’s announcement, los- to break up firm
ing $3.44, or 4.8 percent, to NEW YORK (AP) — Activ-
ist investor Carl Icahn is
$68.98. putting more pressure on
American International
Consumer discretion- Group Inc. to break itself
into three separate com-
ary stocks rose. Chipotle panies.
Icahn said Monday on his
Mexican Grill rebounded website that after speak-
ing with AIG CEO Peter
$23.10, or 4.3 percent, to Hancock several times,
Hancock remains unwilling
$559.29. The stock dropped to split the insurer up. Icahn
vowed to reach out to
12 percent and set an an- shareholders directly and
said he may propose add-
nual low Friday on reports ing a new director who
would agree to succeed
that an E. coli outbreak Hancock as CEO if asked
by the board to do so.
linked to its restaurants AIG confirmed Monday
that it is maintaining an
had spread. Amazon rose “active dialogue” with
Icahn. AIG said that it has
$10.54, or 1.6 percent, to considered breaking the
company up, but that the
$678.99 days before Black maneuver, “did not make
financial sense.”
Friday. Macy’s, which like Last month, Icahn said AIG
was “too big to succeed,”
many retailers has taken a a play on the phrase “too
big to fail,” which was used
beating on fears the holi- during the financial crisis to
explain why the govern-
day shopping season will ment was forced to pre-
vent the total collapse of
be weak, rose $1.44, or 3.7 AIG. It was reasoned at
the time that the collapse
percent, to $40.04. of AIG would have a cas-
cading effect, dragging
Tuesday morning the Con- down other companies
entangled in the growing
ference Board will release financial crisis.
The U.S. bailed out AIG at
its latest Consumer Confi- a cost of $85 billion, money
the company has since re-
Traders James Matthews, left, and John Panin work at the post that handles Pfizer, on the floor of dence report. That will give paid. However, it has had
to cut its business dramati-
the New York Stock Exchange, Monday, Nov. 23, 2015. Stocks gained ground early Monday as investors more insight into cally to focus on its core
insurance operations.
they came off their best week in 2015, but faded in the afternoon and sustained small losses for how consumers are feel- Icahn said Monday that he
owns more than 42 million
the day. (AP Photo/Richard Drew) ing and how much they’ll shares of AIG, which would
give him a more than 3
ate the world’s largest drug Botox maker Allergan for companies said last month spend shopping. percent stake in the New
company. GameStop skid- about $155 billion. The New that they were discussing a York company.q
ded after reporting weak York-based company will combination, and Allergan Tobias Levkovich, chief
results. gain new products that will shares are up about 6 per-
The Dow Jones industrial help it counteract the ex- cent since then while Pfizer U.S. Equity Strategist for
average lost 31.13 points, piration of patents protect- stock has lost 11 percent.
or 0.2 percent, to 17,792.68. ing some key drugs. Pfizer Apple dragged down the Citi Investment Research,
The Standard & Poor’s 500 will also become based in technology sector as its
index declined 2.58 points, Ireland as part of the deal, stock fell $1.55, or 1.3 per- said consumers will keep
or 0.1 percent, to 2,086.59. reducing its tax bill. cent, to $117.75. Video
The Nasdaq composite in- If the purchase goes game retailer GameStop spending because busi-
nesses are hiring, energy
costs and interest rates
are low, and there are
some signs that wages are
increasing.q
Chipotle bounces back after end-of-week sell-off
NEW YORK (AP) — Chipotle say the damage to the wrote that an outbreak of of the people sickened in
rebounded from a heavy company may be limited. salmonella at 22 Chipotle the outbreak had eaten
sell-off in shares to end last The equity research team restaurants in Minnesota at its restaurants. Those
week after it was discov- at William Blair found that “resulted in a double-digit restaurants have since re-
ered that the E. coli out- of the 800 people they sur- drop in sales in the affect- opened, but new cases
break connected to res- veyed earlier this month, ed region for a few weeks were announced Friday in
taurant chain had spread nearly half were unaware before sales largely recov- California, New York, Ohio,
from the Pacific Northwest of the E. coli outbreak ered.” and Minnesota.
to a number of other states. linked to the restaurant. The E. coli outbreak, how- Shares of Chipotle Mexican
In all, 45 people in six states And the older the survey ever, has received much Grill Inc. rose 4.5 percent
have been affected, with taker, the higher the rate of more attention, however, to $560.48 in early trading
43 of those saying they ate awareness, which is good and the Denver company Monday.
at Chipotle the week be- news because Chipotle closed 43 restaurants in Or- Shares fell 12 percent Fri-
fore they became sick. customers tend to skew un- egon and Washington in day and they were down
However, analysts who fol- der 45 years old. late October after health sharply before the opening
low the restaurant chain Analyst Sharon Zackfia officials discovered most bell.q
