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BUSINESSWednesday 28 October
Stocks tick lower on mixed earnings, oil Sales of new medicines boost
3Q results for US drugmakers
MARLEY JAY average fell 41.62 points, cancer drugs Opdivo and
AP Markets Writer or 0.2 percent, to 17,581.43. Yervoy improved. Pfizer LINDA A. JOHNSON ting was the main rea-
NEW YORK (AP) — Stocks The Standard & Poor’s 500 rose 83 cents, or 2.4 per- AP Business Writer son. Net income totaled
slipped Tuesday afternoon index fell 5.29 points, or 0.3 cent, to $34.99 and Bristol- Growing revenue for $1.83 billion, or 64 cents
after several U.S. compa- percent, to 2,065.89. The Myers added $2.25, or 3.5 promising new medicines per share, and adjusted
nies delivered disappoint- Nasdaq composite fell 4.56 percent, to $66.80. for cancer, heart disease income hit 96 cents per
ing results and forecasts. points, or 0.1 percent, to Among other stocks mak- and other serious condi- share. Analysts expected
Energy companies fell more 5,030.15. ing big moves: tions helped U.S. drug- 91 cents.
than the rest of the market The price of U.S. oil fell — Ford reported improved makers improve results af- Revenue was $10.07 bil-
as the price of crude oil hit almost 2 percent and sales of its new F-150 pick- ter several disappointing lion, down 4.6 percent
quarters and beat Wall including the foreign ex-
Trader Greg Mulligan works on the floor of the New York Stock Exchange. Stocks slipped Tuesday Street expectations. change hit and lost sales
afternoon after several U.S. companies delivered disappointing results and forecasts. Buoyed by the stronger from the consumer health
third-quarter results and products unit it sold last
(AP Photo/Richard Drew) rising prospects, Pfizer Inc., year.
Merck & Co. and Bristol- Merck’s Keytruda, part
two-month lows. reached its lowest level up truck, but its net income Myers Squibb Co. raised of the hot new class of
The market made only since the market turmoil of fell short of Wall Street esti- their 2015 profit forecasts, drugs that fight cancer by
small moves as the Federal late August. Oil prices had mates. Ford fell 79 cents, or and their share prices harnessing the immune
Reserve started a two-day recovered some of their 5 percent, to $14.89. rose as the broader mar- system, posted sales of
meeting to discuss interest losses from this summer as — UPS slumped after the kets declined. Switzer- $160 million. Januvia and
rates. That marked a pause companies cut back on package delivery com- land’s Novartis struggled, combination pill Janumet,
after a rally this month that production. pany surprised investors by though, weighed down among the most popular
has wiped out much of a Energy analyst Jim Ritter- saying its revenue dipped by lower sales in its Alcon Type 2 diabetes drugs,
steep loss from August. busch said a recent in- in the third quarter. The eye care unit and other boosted combined sales
Investors are still concerned crease in oil stockpiles, the stock fell $3.08, or 2.9 per- factors. growth of 10 percent, to
about the slow pace of the result of decreased refin- cent, to $103.10. All four drugmakers were $1.58 billion.
economic recovery in the ing production, has sent oil — Alibaba, the Chinese hurt by unfavorable ex- The world’s fourth-biggest
U.S. and are wondering prices back down. Ritter- e-commerce giant, said it change rates cutting the drugmaker, based in
how the economy and the busch says he thinks crude got a big boost from mobile value of foreign sales, Kenilworth, New Jersey,
market will react when in- will slip back to its August sales in the third quarter. which are made in local raised its full-year adjusted
terest rates eventually start lows of around $38 a barrel The results reassured inves- currencies, by at least 7 profit forecast to $3.55 to
to rise. Few expect the Fed and stay there through the tors about Alibaba’s per- percent. Excluding that, $3.60 per share, from $3.45
to raise interest rates this end of 2015. Energy stocks formance while prospects sales were up somewhat to $3.55.
year. And while ultra-low declined along with the for the Chinese economy — mainly due to strong -BMS: Bristol-Myers Squibb
rates tend to be favorable price of oil. Chesapeake remain uncertain. Alibaba launches of new drugs Co. posted revenue of
for stocks and bonds, many Energy fell 41 cents, or 5.8 rose $3.09, or 4 percent, to that are significant medi- $4.07 billion, up 4 percent
investors would like to see percent, to $6.72, while $79.44. Yahoo, which owns cal advances. That, and and above the $3.85 bil-
the uncertainty over inter- Marathon Oil was down a big stake in Alibaba, the companies’ planned lion analysts expected.
est rate policy resolved. 48 cents, or 2.7 percent, picked up 90 cents, or 2.7 launches of new drugs Surging sales of key new
“We don’t think there’s go- to $17.11 and Anadarko percent, to $34.30. in the next several years, medicines — Eliquis, mela-
ing to be enough evidence Petroleum lost $3.71, or 5.4 Earnings continued to pour bodes well for their futures. noma and lung cancer
between now and the end percent, to $65.29. Health in after the close of regu- -PFIZER: Including the cur- drug Opdivo and hepa-
of the year to support a care was the only sector lar trading. Apple’s results rency hit, revenue edged titis C pill Daklinza — led
move by the Fed,” said Pat- to rise after some of the were stronger than expect- down 2 percent for Pfizer, the way. However, net in-
rick Maldari, a senior fixed world’s largest drug com- ed and the tech giant said which is rebounding after come dipped 2.1 percent
income investment spe- panies announced strong it expects to surpass last five years of generic com- to $706 million, or 42 cents
cialist at Aberdeen Asset results. Pfizer raised its profit year’s record of 74.5 mil- petition slashing its rev- per share, due to lower
Management. “They just forecast after its third-quar- lion iPhones sold in the De- enue. The New York com- revenue from alliance
have not had the ammu- ter results came in bet- cember quarter. The stock pany still posted $12.09 partners and double-digit
nition. The economic data ter than expected, while rose $3.21, or 2.8 percent, billion in revenue, beating increases in spending on
continues to be weak.” Bristol-Myers said sales of to $117.76 in late electronic the average Street fore- research and advertising.
The Dow Jones industrial key new medicines like the trading. q cast of $11.49 billion. Adjusted earnings per
The maker of pain and share came to 39 cents a
fibromyalgia treatment share; analysts expected
Lyrica said net income 35 cents.
dropped 20 percent to New York-based Bristol-
$2.13 billion. Adjusted Myers, the world’s 15th
earnings came to 60 biggest drugmaker, raised
cents per share, trounc- its adjusted profit forecast
ing the 51 cents analysts for 2015, to $1.85 to $1.90
expected. per share, from $1.70 to
Pfizer raised its adjusted $1.80.
annual profit forecast to -NOVARTIS: The world’s
$2.16 to $2.20 per share, largest drugmaker Novar-
its second increase since tis said net income fell 42
buying Hospira. percent to $1.81 billion,
-MERCK: Merck & Co. largely on the sale of its
more than doubled third- hepatitis drug unit a year
quarter profit, its best earlier and provisions for
performance in a while, legal settlements and
though heavy cost-cut- fees. q
