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BUSINESSSaturday 5 December 2015
Strong job gains send US stock market sharply higher Avon shares gain
ground on talk of
MARLEY JAY turing and energy compa- best day since Sept. 8, ris- nancial crisis and it kept it Cerberus interest
AP Markets Writer nies are struggling. ing 42.07 points, or 2.1 per- low throughout the Great
NEW YORK (AP) — The The rally gained more pow- cent, to 2,091.69. The Nas- Recession to encourage NEW YORK (AP) — Shares of
stock market surged to its er after European Cen- daq composite increased lending and hiring. It hasn’t Avon Products Inc. jumped
biggest gain since early tral Bank President Mario 104.74 points, or 2.1 per- raised interest rates in nine Friday as multiple media re-
September Friday after an- Draghi said the ECB is ready cent, to 5,142.27 points. years. ports said the beauty prod-
other strong month of hir- to expand its stimulus pro- When the Federal Reserve Davidson said the jobs ucts company is consider-
ing by U.S. employers. gram if necessary. That was decided not to raise inter- data was as good as inves- ing selling its North Ameri-
The solid news on the a relief: stocks and bonds est rates in September, tors expected, which gives can business to private eq-
economy opened the way tumbled Thursday after investors gradually con- them more confidence in uity firm Cerberus Capital
the state of the economy Management.
Traders Fred DeMarco, left, and Greg Mulligan work on the floor of the New York Stock and the Fed’s plans. The reports come as an-
Exchange, Friday, Dec. 4, 2015. The stock market surged to its biggest gain since early “The markets love predict- other private equity firm,
September on Friday after another strong month of hiring by U.S. employers. ability and this is about as Barington Capital Group,
predictable as you can criticized the struggling
(AP Photo/Richard Drew) get,” he said. In addition to company and called for
the jobs growth, Davidson management changes
for the Federal Reserve to the ECB announced some cluded that the Fed would said more people are look- and cost cuts. Barington
begin raising interest rates new stimulus measures, but act in December unless it ing for work and wages are says it has about a 3 per-
back toward normal lev- didn’t do as much as inves- received some big warn- improving. cent stake in the New York-
els later this month. Energy tors expected. ing signs about the health Luke Bartholomew, invest- based company.
stocks and the price of “His clarification of com- of the economy. ment manager Aberdeen Avon’s stock rose 31 cents,
crude oil fell after OPEC ments he made earlier in Those signs never came. Capital Management, said or 7.8 percent, to $4.30 in
said it won’t cut produc- the week gives investors The September jobs report it was almost a foregone afternoon trading. On Thurs-
tion. confidence that ECB will was disappointing, but hir- conclusion that the Fed day, it gained 26 cents, or 7
Stocks started the day continue its ‘whatever is ing climbed in October, will raise interest rates, but percent, to close at $3.99.
higher after the Labor De- necessary’ course,” said and November hiring was what isn’t clear is what will Several media outlets, in-
partment said employers Erik Davidson, chief invest- solid. The government also happen after that. cluding The Wall Street
added 211,000 jobs in No- ment officer at Wells Fargo said the economy gained “It would have taken a re- Journal, said Avon is close
vember. That was more Private Bank. more jobs in September ally catastrophically bad to cutting a deal with Cer-
than investors expected, The Dow Jones indus- and October than it initially number to put the Fed berus that could involve a
and a sign that consum- trial average rose 369.96 reported. off today,” he said. “It’s a minority investment, board
ers are still spending and points, or 2.1 percent, to The Fed slashed its key question of what the path seats and the sale of part of
keeping the economy 17,847.63. The Standard short-term interest rate to looks like next year.” its business.
afloat even as manufac- & Poor’s 500 index had its near zero during the fi- Consumer discretionary Barington Capital sent a
stocks were the best per- critical letter to Avon Chair-
formers in the S&P 500. Dis- man Douglas R. Conant, on
count retailer Dollar Tree, the heels of those reports. In
toy maker Mattel and it, the private equity group
homebuilder D.R. Horton called for cutting costs by
climbed, and Apple rose up to $700 million in up to 24
$3.83, or 3.3 percent, to months by “streamlining”
$119.03, a large move for the company. It also called
the world’s most valuable for “eliminating” its current
company. Energy stocks, management structure as it
however, took a beating, criticized CEO Sheri McCoy.
and almost all of the larg- The letter also calls for add-
est losses in the S&P 500 ing independent directors
went to energy compa- and Barington intends to
nies. Oil cartel OPEC said nominate a group of can-
it won’t cut oil production didates ahead of the com-
even though global stock- pany’s 2016 annual meet-
piles keep growing. The ing. “We are convinced
price of oil is trading near that the addition of new
six-year lows.q independent directors to
the board is a necessary
Norfolk Southern rejects Canadian Pacific merger first step toward develop-
ing and executing a strat-
NORFOLK, Va. (AP) — Nor- Norfolk Southern’s “mis- man Andrew Reardon, any major railroad mergers egy that will unlock Avon’s
folk Southern has rejected characterization” of the Norfolk Southern said that in more than 15 years. One value potential for all share-
Canadian Pacific’s cash- offer and is “committed to it felt the regulatory review of the only major deals holders,” Barington said in
and-stock proposal to this transaction.” process for the proposed in recent years is when the letter.Avon has been
combine the two railroads, Norfolk Southern Corp. had deal would take two years Warren Buffett’s Berkshire reporting wider losses over
saying the offer is inade- said earlier Friday that its or more, with a very low Hathaway conglomer- the last several years as rev-
quate and has regulatory board determined the pro- likelihood of approval. ate bought BNSF railroad enue continues to decline.
risks. posal had “regulatory risks Even if it were approved, in 2010. Shares of Norfolk The company did not com-
Last month Canadian Pa- and uncertainties that are Norfolk Southern said it Southern dropped $1.05 ment on the report of a po-
cific offered more than $28 highly unlikely to be over- would be “in limbo” for to $92.06, while Canadian tential Cerberus deal, but
billion for Norfolk Southern. come.” In a letter sent to that time period, disrupting Pacific Railway Ltd.’s stock said it is focused on taking
Canadian Pacific said Fri- Canadian Pacific CEO E. its operations. Federal reg- fell $6.42, or 4.6 percent, to “strategic actions” to drive
day that it disagrees with Hunter Harrison and Chair- ulators haven’t approved $134.49.q growth and enhance value
for shareholders.q
