Page 24 - ARUBA TODAY

Wednesday 1 February BUSINESS
A24

Stock indexes battle to a mixed finish as drugmakers rally

MARLEY JAY ery company forecast an
AP Markets Writer annual profit that was far
NEW YORK (AP) — U.S. smaller than analysts ex-
stocks fought their way to pected. UPS expects to
a mixed finish Tuesday as earn no more than $6.10 a
drugmakers rallied, which share this year while Fact-
mostly canceled out losses Set says experts expected
for industrial companies. In- $6.15 per share. UPS gave
vestors shifted their money up $7.90, or 6.8 percent,
to less risky investments for to $109.13 and FedEx fell
the second day in a row. $4.14, or 2.1 percent, to
For the second straight $189.11. That helped pull
day, stocks started with industrial companies lower.
substantial losses. Industrial Drug companies jumped
companies, which have after Trump said he wants
climbed lately, fell the less regulation on pre-
most as UPS tumbled after scription drugs because
a weak fourth-quarter re- that could speed up drug
port. Banks also slipped. approvals. While Trump
Investors bid up assets that again said he wants to re-
are traditionally seen as duce drug prices, investors
less risky, including gold, seemed pleased with pro-
government bonds, and posals that could reduce
stocks that pay big divi- Trader Joseph Dente, left, works on the floor of the New York Stock Exchange. U.S. stocks fought drugmakers’ costs and
dends. Drug companies their way to a mixed finish Tuesday as drugmakers rallied, which mostly canceled out losses for boost their profits, as well as
also rallied after President industrial companies. (AP Photo/Richard Drew) with the tone of the meet-
Donald Trump met with ing.
industry executives and matic.” The S&P 500 lost 2.03 points, than fell. Just three weeks ago Trump
discussed ideas including The stock market made or 0.1 percent, to 2,278.87. Athletic apparel maker Un- said drugmakers were “get-
faster drug approvals and huge gains after Trump It fell as much as 13 points der Armour plunged after ting away with murder” on
lower taxes. was elected last fall, and early on. The S&P 500 has investors were disappoint- prices.
Jim Paulsen, chief invest- Paulsen said it’s not a sur- fallen for four days in a row. ed with its fourth-quarter re- The Nasdaq Biotech index
ment strategist for Wells prise that investors would While that is its longest los- port, which included higher climbed 2.8 percent. Com-
Capital Management, said sell some of their holdings, ing streak since before the expenses. Under Armour panies that make both
investors are looking for take some profits, and presidential election, the also issued a weak full-year generic and name-brand
safer investments because move to lower-risk invest- losses have been small. forecast and said its chief drugs traded higher, as
the change from Barack ments at some point. The Nasdaq compos- financial officer is leaving. did prescription drug dis-
Obama’s administration The Dow Jones indus- ite gained 1.07 points to The stock tumbled $7.45, tributors. After the market
to Donald Trump’s has cre- trial average sank 107.04 5,614.79. The Russell 2000 or 25.7 percent, to $21.49. closed, Apple reported a
ated so many changes in points, or 0.5 percent, to index of small-company It dropped 30 percent last bigger profit and greater
government. 19,864.09 as companies stocks rose 9.49 points, or year and is now trading at sales than analysts ex-
“More than anything right like Goldman Sachs and 0.7 percent, to 1,361.82. its lowest price in two years. pected as iPhone sales
now, it’s just the pace of Boeing returned some of On the New York Stock Ex- United Parcel Service sank bounced back from a re-
news,” he said. “It is so dra- their recent gains. change, more stocks rose after the package deliv- cent slump.q

Under Armour has rare miss in 4Q; shares plunge

BALTIMORE (AP) — Under CFO Molloy is stepping as footwear, international
Armour, typically a star on down from his post due to and direct-to-consumer.
earnings day, suffered a personal reasons. David Revenue increased to $1.31
rare miss in the fourth quar- Bergman, senior vice presi- billion from $1.17 billion, but
ter, sending shares plung- dent of corporate finance, fell short of the $1.41 billion
ing 21 percent in early trad- will serve as acting CFO in revenue that analysts
ing Tuesday. starting on Friday. Molloy polled by Zacks expected.
The company’s extended will help with the transition North American revenue
streak of soaring revenue process. climbed 6 percent, while in-
growth going back years For the period ended Dec. ternational revenue surged
rose 12 percent, just over 31, Under Armour Inc. 55 percent on significant
half what the Baltimore earned $104.9 million, or growth in the U.K., Germa-
company has established 23 cents per share. A year ny, China and Australia.
as its norm. ago the company earned Footwear revenue climbed
The slowing revenue $105.6 million, or 24 cents 36 percent on faster growth
dragged down Under Ar- per share. in the running and basket-
mour’s chief rival, Nike. Its Analysts surveyed by Zacks ball categories.
shares slid 2.5 percent. Investment Research were Under Armour foresees its
The sports clothing and calling for earnings of 25 2017 revenue growing 11
footwear company also cents per share. percent to 12 percent to al-
announced the resignation Selling, general and admin- most reach $5.4 billion. An-
of Chief Financial Officer istrative expenses rose to alysts surveyed by FactSet
Chip Molloy and released $419.8 million from $384.1 predict revenue of $6.06
a conservative revenue million as the chain con- billion.
outlook for this year. tinued to invest in its high Shares fell $5.34, to $19.75
Under Armour said that growth businesses such Tuesday.q