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BUSINESS Friday 5 May 2017
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Plunging oil prices weigh on stocks as other sectors edge up

By MARLEY JAY jobs report Friday morning,
AP Markets Writer and Warne said the April
NEW YORK (AP) — Oil pric- report may get an outsize
es and energy companies level of attention because
plunged Thursday, but the previous jobs report
other stocks didn’t move was disappointing and
much as investors waited the economy didn’t grow
for more signs about the much in the first quarter.
state of the economy. “A strong jobs report for
Household goods makers April would suggest that
and health care compa- first quarter’s weakness
nies rose following some was transitory,” she said.
solid company earnings Church & Dwight, which
reports. Most other parts makes Arm & Hammer
of the market made little baking soda, Trojan con-
gains, but energy compa- doms and OxiClean clean-
nies took sharp losses as ers, raised its profit estimate
the price of crude oil fell after its first-quarter results
almost 5 percent. That was were better than analysts
its biggest one-day loss in anticipated. Its stock rose
about two months. $2.10, or 4.3 percent, to
“We may be seeing signs $50.85. Frosted Flakes and
that global production Pop Tarts maker Kellogg
is strong, and whenever Trader Jonathan Niles works on the floor of the New York Stock Exchange, Thursday, May 4, 2017. posted a larger profit than
markets see a decline in Oil prices and energy companies plunged Thursday, but other stocks didn’t move much as inves- expected and its stock
oil prices they worry it’s tors waited for more signs about the state of the economy. (AP Photo/Richard Drew) gained $1.46, or 2.1 per-
actually an indication of cent, to $70.40.
weak demand,” said Kate such as tax cuts. out of every three stocks cut production and sup- The House of Representa-
Warne, an investment The Standard & Poor’s 500 fell. port prices. OPEC nations tives passed a revised bill
strategist for Edward Jones. index rose 1.39 points, or U.S. benchmark crude fu- will discuss that deal later that would roll back much
Warne said oil prices have 0.1 percent, to 2,389.52. tures shed another $2.30, this month. of the 2010 Affordable
slipped recently because The Dow Jones industrial or 4.8 percent, to $45.52 a Exxon Mobil skidded $1.06, Care Act. As currently writ-
of an accumulation of average lost 6.43 points barrel in New York. Brent or 1.3 percent, to $81.64 ten, the American Health
concerns about rising en- to 20,951.47. The Nasdaq crude, the standard for in- and EOG Resources lost Care Act would rework
ergy production in the composite added 2.79 ternational oils, fell $2.41, or $3.16, or 3.4 percent, to subsidies for private insur-
U.S. and slower economic points to 6,075.34. The Rus- 4.7 percent, to $48.38 a bar- $88.60. Chesapeake Ener- ance, limit federal spend-
growth in both the U.S. and sell 2000 index of small- rel in London. Oil has fallen gy tumbled 41 cents, or 7.4 ing on Medicaid for low-
China. company stocks dipped to its lowest price since No- percent, to $5.13. income people, and cut
Health care stocks didn’t 2.08 points, or 0.1 percent, vember as investors won- Other parts of the market taxes on upper-income
react much to the narrow to 1,388.85. On the New der if the OPEC cartel will were quiet. The govern- individuals used to finance
passage in the House of York Stock Exchange, two extend an agreement to ment will release its monthly Obama’s overhaul. q
Representatives of a bill in-
tended to roll back much Kellogg 1Q profit tops forecasts on lower costs
of former President Barack
Obama’s health care law.
The bill now heads to the NEW YORK (AP) — Kellogg share.The results topped forecasts. Four analysts sur- Kellogg expects full-year
Senate, where its fate is less Co. reported a 50 percent Wall Street expectations. veyed by Zacks expected earnings in the range of
certain. surge in first-quarter prof- The average estimate of $3.33 billion. $4.03 to $4.09 per share.
Broader market measures it as lower costs offset a eight analysts surveyed by Kellogg and competitors Kellogg shares have de-
did tick higher after the downturn in sales. Zacks Investment Research like General Mills and Post clined 6.5 percent since
bill was passed, however, The maker of Frosted Flakes, was for earnings of $1.01 have been cutting costs the beginning of the year,
as investors hoped the Pop Tarts and Eggo waffles per share. and changing strategies as while the Standard & Poor’s
Republican-controlled earned $262 million, or 74 The Battle Creek, Michigan consumer trends shift away 500 index has increased
Congress may be in a bet- cents per share. Earnings, company’s revenue fell from processed foods in nearly 7 percent. The stock
ter position to compromise adjusted for non-recurring 4.1 percent to $3.25 billion North America, a key mar- has declined 10 percent in
on business-friendly polices costs, came to $1.06 per in the period, below Street ket for Kellogg. the last 12 months.q