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Thursday 4 May 2017 BUSINESS
A24

Stocks dip as media, health care fall; banks jump Volkswagen’s Q1

profit jumps up 44%
MARLEY JAY rates in June. Bond yields economic growth slowed $63.46. Twenty-First Century as sales improve
AP Markets Writer and interest rates rose af- over the last six weeks as Fox gave up $1.55, or 5.1
NEW YORK (AP) — U.S. ter the Fed made its state- inflation stayed low and percent, to $28.88. DAVID McHUGH
stocks dipped Wednesday ment. That sent bank stocks spending didn’t increase Apple’s first-quarter iPhone AP Business Writer
sales and projections for FRANKFURT, Germany (AP)
the current quarter weren’t — German automaker
quite as good as analysts Volkswagen saw its first
hoped. Apple stock strug- quarter profit jump 44 per-
gled in late 2015 and for cent as it focused on sell-
much of 2016 as iPhone ing more profitable models
sales slowed down and and worked past its scan-
then fell for the first time. dal over diesel cars rigged
But they’ve climbed 27 per- to cheat on emissions tests.
cent this year and the stock Costs and fines from the
closed at an all-time high scandal that emerged in
Tuesday. It fell as much as Sept. 2015 have dinged
2.2 percent early Wednes- Volkswagen’s large cash
day, but finished down just pile but the chief financial
45 cents at $147.06. officer said Wednesday
Irish generic drug maker that the company was sol-
Perrigo said its offices were id enough to handle add-
searched as part of a Jus- ed costs this year. Volk-
tice Department investiga- swagen also reaffirmed its
tion into pricing by generic profit goal for the full year.
drug companies. Perrigo After-tax profit rose to 3.4
dropped $3.88, or 5.1 per- billion euros ($3.7 billion)
cent, to $72.35. Several oth- from 2.4 billion euros in the
Delta Air Lines CEO Ed Bastian, right, accompanied by former CEO Jerry Grinstein, center, gavels er companies have previ- year-earlier quarter. The re-
trading closed on the bell podium of the New York Stock Exchange, in celebration of their 10th ously disclosed subpoenas sult beat the 3.1 billion eu-
Anniversary of the company’s re-listing, Wednesday, May 3, 2017. connected to that probe, ros expected by analysts
(AP Photo/Richard Drew) including Mylan and Lan- surveyed by financial infor-
nett. Mylan fell 98 cents, or mation provider FactSet.
2.6 percent, to $37.19. Lan- Revenues, meanwhile,
as media and health care higher, which narrowed the much. However it expects nett had a disappointing rose 10 percent to 56.2 bil-
companies took losses. The market’s losses. The dollar growth to pick up and said quarter as drug pricing re- lion euros.
Federal Reserve left inter- also got a bit stronger. inflation should eventually mained weak, and its stock The Wolfsburg-based com-
est rates unchanged, but Ryan Detrick, senior market reach its target of 2 per- tumbled $5.05, or 18.6 per- pany said the improve-
bond yields and banks rose strategist for LPL Financial, cent. Experts think it’s likely cent, to $22.10. ment came from tighter
as investors felt rates will in- said he agrees that the the central bank will raise Biotech drugmaker Gilead cost controls, a sales mix
crease soon. economy will improve fol- rates in June, as it did last Sciences reported disap- favoring its more-profitable
First-quarter results for most lowing a sluggish first quar- December and again in pointing profit and revenue models and shifts in curren-
companies have been ter. March. as sales of its hepatitis C cy exchange rates.
good, but stocks were “Earnings have been strong Detrick said he thinks the drugs Sovaldi and Harvoni It also saw a better prof-
lower all day as a few across the board,” he said. Fed will raise interest rates plunged in all major mar- it performance from its
big-name companies dis- “The economy isn’t quite as two more times this year. kets, and its stock gave namesake Volkswagen
closed shaky results. Media weak as that GDP (report) Media companies slumped up $1.38, or 2 percent, to brand. Operating earnings
companies tumbled after makes it look.” after Time Warner, the own- $67.21. there rose to 869 million eu-
Time Warner said its cable The Standard & Poor’s 500 er of HBO and TBS, said rev- Bond prices turned lower. ros from a meager 73 mil-
advertising revenue fell. index slipped 3.04 points, enue from cable advertis- The yield on the 10-year lion euros in the year-ago
Apple slipped after iPhone or 0.1 percent, to 2,388.13. ing fell in the first quarter. Treasury note rose to 2.32 quarter. The Volkswagen
sales came in lower than The Dow Jones industrial Time Warner has agreed to percent from 2.29 percent brand has struggled with
investors expected, but the average added 8.01 points be bought by AT&T, so its and banks climbed. high costs and low profit
stock recovered nearly all to 20,957.90. The Nasdaq stock hardly budged, but U.S. benchmark crude margins.
of its losses. composite sank 22.82 its competitors slumped. added 16 cents to $47.82 a The group’s other brands
The Federal Reserve left points, or 0.4 percent, to Walt Disney shed $2.75, or barrel in New York. On Tues- include luxury makes Audi
interest rates where they 6,072.55. The Russell 2000 2.4 percent, to $111.62, for day U.S. crude oil closed at and Porsche, as well as
were, but also said it ex- index, which tracks smaller its biggest loss in almost a its lowest price since mid- Skoda, SEAT and Lambo-
pects the economy to start companies, declined 8.44 year. November. Brent crude, rghini.
growing at a faster pace. points, or 0.6 percent, to Viacom sank $3.20, or 7.5 used to price international The company reaffirmed
That could set the stage 1,390.92. percent, to $39.26 and CBS oils, rose 33 cents to $50.79 its profit goal of an operat-
for the Fed to boost interest The Federal Reserve said lost $2.20, or 3.4 percent, to a barrel in London.q ing return on sales of 6 to 7
Facebook tops Wall Street 1Q profit forecasts percent.
Fines and related costs
from the scandal reduced
MENLO PARK, Calif. (AP) option expense, came to company posted revenue the beginning of the the company’s cash re-
— Facebook Inc. (FB) on $1.23 per share. of $8.03 billion in the pe- year, while the Standard serve somewhat but CFO
Wednesday reported first- The results exceeded Wall riod, also beating Street & Poor’s 500 index has Frank Witter said the group
quarter profit of $3.06 bil- Street expectations. The forecasts. climbed almost 7 per- retained “a strong financial
lion. On a per-share basis, average estimate of 15 Eleven analysts surveyed cent. In the final minutes foundation” despite facing
the Menlo Park, California- analysts surveyed by Zacks by Zacks expected $7.85 of trading on Wednesday, further scandal outlays this
based company said it Investment Research was billion. shares hit $151.80, a climb year in double-digit billions.
had profit of $1.04. for earnings of $1.10 per Facebook shares have of 29 percent in the last 12 Net cash fell by 3.9 billion
Earnings, adjusted for stock share. The social media climbed 32 percent since months.q euros to 23.6 billion euros.q