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BUSINESSThursday 10 March 2016
US stocks post slight gains, led by oil and gas firms Amazon leases 20
jets to build out
BERNARD CONDON percent, to 4,674.38. The unprecedented efforts to of the longest economic logistics network
AP Business Writer S&P 500 climbed 10 points, encourage investors to expansions, and thus one
NEW YORK (AP) — Stocks or 0.5 percent, to 1,989.26. take more risk by lowering the longest bull markets, NEW YORK (AP) — Amazon
rose on the seventh anni- The gains were broad, with interest rates on bonds and we have experienced,” is taking to the skies.
versary of the bull market nine of 10 industry sectors other safer assets. he said. “Easy money still The e-commerce pow-
on Wednesday as crude of the S&P 500 rising. The The current bull market is rules.” erhouse has finalized an
oil resumed its climb from a jump in crude sent several the third-longest of the 11 The Federal Reserve meets agreement to lease 20
13-year low. next week, but most inves- Boeing jets from Air Trans-
The gains were modest as Trader Tommy Kalikas works on the floor of the New York Stock tors do not think it will raise port Services Group Inc. as
investors await key policy Exchange. Stocks rose on the seventh anniversary of the bull short-term interest rates it it builds out its U.S. delivery
decisions from Europe’s market on Wednesday as crude oil resumed its climb from a controls from near zero. It capabilities.
central bank on Thursday 13-year low. raised them for the first time Amazon has been invest-
and from the U.S. Federal in nine years in December. ing heavily in its shipping in-
Reserve next week. Energy (AP Photo/Richard Drew) At the end of its policy frastructure, adding sorting
companies rebounded meeting on Thursday, the centers, which sort pack-
from big drops the day be- energy companies soar- since World War II, accord- European Central Bank is ages by zip code and de-
fore, gaining 1.5 percent. ing. Chesapeake Energy ing to research firm S&P widely expected to an- liver them to post offices.
The stock market has been climbed 8 percent, Devon Capital IQ. nounce more efforts to And it has started to roll
climbing for three weeks Energy rose 7 percent and Chief Investment Officer stimulate the 19-country out thousands of trucks to
as reports on hiring, retail Newfield Exploration rose 6 Krishna Memani of Op- eurozone. speed up package deliv-
spending and manufactur- percent. penheimer Funds said he’s Possible moves include ery from its warehouses to
ing suggest the U.S. econ- The S&P 500 has tripled optimistic the bull market another cut in the deposit the sorting centers.
omy is strengthening and since bottoming out at will extend its run because rate for funds from com- Amazon says the goal is
that fears that a slowdown 676.53 exactly seven years modest economic growth mercial banks to even fur- not to compete with pack-
in China would tip the U.S. ago during the financial means little inflation, and ther below zero. The hope age delivery carriers such
into recession are over- crisis. Stocks have been no need for the Federal Re- is that will get banks to stop as FedEx Corp. and UPS
blown. The Standard and pushed up by higher cor- serve to move too quickly holding onto their money but work on improving its
Poor’s 500 index is up 9 per- porate earnings, though to reverse its stimulus poli- and lend more. own logistics to offer faster
cent from its mid-February not in the past year, and cies. The ECB also could increase delivery for customers as
low. by the Federal Reserve’s “We believe this will be one its bond-buying program to well as providing shipping
“People are becoming pump more money into the services for third-party sell-
more optimistic and mar- region’s economy. ers on the site, a service
kets are recovering,” said Among U.S. stocks making called Fulfilled by Ama-
Seth Masters, chief invest- big moves Wednesday, Air zon. Amazon’s $99 annual
ment officer at AB Ber- Transport Services jumped Prime loyalty program of-
nstein. The hope is that $1.96, or 17 percent, to fers free two-day shipping
“monetary authorities are $13.73 after turning in solid on many items.
committed to doing what it results and saying it will op- Air Transport Services said
takes and not derail it.” erate an air transport net- the company had been
The Dow Jones industrial av- work for Amazon. Pet-food working on the agreement
erage climbed 36.26 points, company Blue Buffalo Pet with Amazon since last
or 0.2 percent, to 17,000.36. Products rose $4.19, or 23 summer.
The Nasdaq composite in- percent, $22.75 after post- Amazon will lease 20 747
creased 25.55 points, or 0.6 ing strong earnings. freighter jets. The 20 leases
are for five to seven years.
Cathay Pacific profit nearly doubles as fuel cost falls The agreement for the op-
eration of the aircraft will
KELVIN CHAN nual profit nearly doubled line said that net income ($1.1 billion) from HK$911 be for five years.
AP Business Writer in 2015 as passenger de- jumped 90.5 percent from million in 2014. Amazon is also taking a
HONG KONG (AP) — Ca- mand grew and tumbling the year before to 6 billion The company, which also stake in the Wilmington,
thay Pacific Airways said oil prices cut its fuel bill. Hong Kong dollars ($773 operates Asian regional Ohio-based company. It
Wednesday that its an- Hong Kong’s biggest air- million). Cathay and other carrier Dragonair, said will get warrants to buy
airlines are among the big- passenger numbers grew during a five-year period
gest beneficiaries of the 7.9 percent but revenue up to 19.9 percent of the
drop in the price of crude slipped 3.4 percent to company’s shares at $9.73
oil, which has fallen from HK$102.3 billion ($13.2 bil- per share.
more than $100 a barrel in lion). Chairman John Slosar Dave Clark, Amazon’s
mid-2014 to the $30 level in said operating conditions senior vice president of
recent months. improved last year but he worldwide operations and
The airline said the amount expected some challeng- customer service, said in
it spent on jet fuel, which is es to persist into 2016. an emailed statement that
its single biggest expense, “Strong competition from the agreement will help
fell 18 percent to HK$33 bil- other airlines in the region, supplement its existing de-
lion ($4.2 billion) last year. foreign currency move- livery network and ensure
That’s even after taking ments and weak premium the company has the air
into account bigger losses class passenger demand cargo capacity to support
from taking out contracts will put pressure on passen- one- and two-day delivery
aimed at minimizing fuel- ger yield,” Slosar said in a for its customers.
bill volatility that locked the statement. In midday trading, shares
carrier into higher prices. Cathay said that the first of of Air Transport Services
The losses from such fuel 12 A350 jets ordered from jumped 18 percent to
cost hedging ballooned Airbus will be delivered in $13.91.
last year to HK$8.5 billion May.
