Page 25 - ARUBA TODAY

BUSINESS Tuesday 18 april 2017
A25

Led by banks, stocks jump after strong report from China

MARLEY JAY ago it agreed to be bought
AP Markets Writer by AT&T for about $1.25
NEW YORK (AP) — U.S. billion. Straight Path said
stocks bounced back from it was contacted by an-
recent losses Monday after other company Thursday.
the Chinese government Straight Path stock rose
said that country’s econo- $19.86, or 21.7 percent, to
my grew at a slightly faster $111.56. Investors are now
pace in the first quarter. valuing the company at
Banks jumped as interest $1.39 billion.
rates recovered. Eli Lilly and Incyte stumbled
After losses in three of the after the Food and Drug
last four weeks, stocks had Administration refused to
their best day in more than approve Olumiant, a pill
a month. The largest gains for the immune disorder
went to industries that rheumatoid arthritis. The
would benefit the most companies may have to
from faster global eco- run more studies of the
nomic growth. drug, which could further
Among banks, the leaders delay its approval and
included M&T Bank, which force them to spend more.
became the latest finan- Lilly has high hopes for Olu-
cial company to report miant because it’s a pill
strong first-quarter results. King Michael Odunayo Ajayi, right, of Nigeria’s Osun state, is escorted by Jim Byrne, New York while most other new rheu-
Technology companies Stock Exchange head of U.S. listings, as he visits the trading floor of the NYSE, Monday, April 17, matoid arthritis drugs are
were led by chipmaker 2017. (AP Photo/Richard Drew) injections. Lilly lost $3.50, or
Nvidia and Google parent 4.1 percent, to $82.38 and
company Alphabet, while 15.94 points, or 1.2 percent, outside the U.S. for planes, cars and elec- Incyte sank $14.77, or 10.5
online retail giant Amazon to 1,361.18. Under the new agreement tronics. It was spun off from percent, to $126.07.
and streaming video com- China’s recovering econ- Abbott will pay $51 a share, aluminum company Alcoa Pretzel, nuts and salty
pany Netflix also made omy grew another 6.9 per- or about $5.3 billion, and last year. Elliott has been snack maker Snyder’s-
large gains. cent in the first quarter. In Alere climbed $6.74, or 15.9 pushing the company to Lance tumbled $6.16, or
“It was good news to see 2016 it grew at its slowest percent, to $49.05. It had replace Kleinfeld. The stock 15.4 percent, to $33.76
a positive number com- pace in almost 30 years, traded as low as $31.47 last gained 79 cents, or 3.1 per- after it gave a weak first-
ing out of the world’s sec- and the government spent July, as investors worried cent, to $26.69. quarter forecast that in-
ond-largest economy,” more money on construc- the deal would fall apart Bond prices slipped. The cluded more spending on
said Quincy Krosby, mar- tion of infrastructure such after news of the investi- yield on the 10-year Trea- marketing and lower profit
ket strategist at Pruden- as roads and bridges in re- gation broke. Abbott rose sury note rose to 2.25 per- margins and then slashed
tial Financial. “It was the sponse. Relatively cheap 64 cents, or 1.5 percent, cent from 2.24 percent. its forecast for the year.
strongest GDP reading in credit also boosted prop- to $43.31. Arconic jumped Banks are the worst-per- Netflix climbed 3 percent
six quarters, and much of erty sales. after the company said forming part of the market to $147.25 Monday, but
it was based on their in- Medical device maker Chairman and CEO Klaus recently thanks to sharp slumped 1.5 percent in
frastructure spending and Alere surged after it ac- Kleinfeld agreed to step declines in bond yields and aftermarket trading as it
also the housing market.” cepted a modified buyout down after the board of interest rates. didn’t gain as many sub-
The Standard & Poor’s 500 offer from Abbott Labora- directors discovered that Wireless spectrum license scribers in the first quarter
index climbed 20.06 points, tories. Abbott agreed to he sent a letter to Arconic’s company Straight Path as investors hoped. Its profit
or 0.9 percent, to 2,349.01. buy Alere for $56 per share, largest shareholder, activist Communications climbed guidance also fell short of
The Dow Jones industrial or $5.8 billion, more than a investment firm Elliott Man- after it said it might get a analyst estimates.q
average rose 183.67 points, year ago. But it filed a law- agement, without telling new buyout offer. A week
or 0.9 percent, to 20,636.92. suit to end the deal after the board. Arconic said
The Nasdaq composite Alere recalled a key prod- that was “poor judgment.”
jumped 51.64 points, or 0.9 uct, delayed filing a finan- It didn’t say what Kleinfeld
percent, to 5,856.79. The cial statement, and faced wrote in the letter.
Russell 2000 index of small- a Justice Department in- Arconic makes aluminum,
er-company stocks soared vestigation into its business titanium and nickel parts

Arconic CEO Klaus Kleinfeld steps down

NEW YORK (AP) — Arconic that Kleinfeld “showed cial at Elliott Management,
said Monday that Klaus poor judgment.” A spokes- an activist investor that has
Kleinfeld has agreed to woman at Arconic de- been pushing the compa-
step down as CEO and clined to say what was ny to replace Kleinfeld.
chairman after the com- in the letter. Arconic Inc. Elliott Management has an
pany’s board of directors makes aluminum, titanium 11.6 percent stake in Ar-
discovered that he sent a or nickel parts for planes, conic.
letter to its largest share- cars and electronics. Board member David Hess
holder without telling them. The New York-based com- will serve as interim CEO
Shares of Arconic climbed pany was spun off from as the company looks for
$1.46, or 5.6 percent, to aluminum company Alcoa a permanent replace-
$27.36 in morning trading last year. ment. Patricia Russo was
after the announcement. Arconic said Kleinfeld’s let- named interim chair of the
Arconic said in a statement ter was sent to a senior offi- board.q