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BUSINESS Tuesday 23 OcTOber 2018
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Losses in energy companies, banks weigh on US stock indexes

By ALEX VEIGA Americas at UBS Wealth tial lung cancer treatment
Associated Press Management Research. regimen.
A broad slide led by ener- FINANCIALS SLIDE: Banks TECH BOUNCE: After a
gy companies and banks and other financial com- sluggish start, technology
pulled U.S. stocks lower panies took losses. Synchro- stocks rebounded in morn-
Monday, extending the ny Financial fell 4.8 percent ing trading. Advanced Mi-
market's recent string of to $29.84. cro Devices climbed 3.5
losses. Technology com- BROKEN TOYS: Hasbro slid percent to $24.49.
panies were doing better 3.6 percent to $94.55 after GOOD CHEMISTRY: Ja-
than the rest of the market. the toy maker reported dis- cobs Engineering Group
The losses, which had the appointing third-quarter re- climbed 6.3 percent to
benchmark S&P 500 index sults, partly due to lost sales $76.81 after the company
on track for a four-day los- following the demise of agreed to sell its chemicals
ing streak, came as traders Toys R Us. Hasbro also said and resources business to
geared up for a busy week it will cut jobs as it deals WorleyParsons of Australia
of corporate earnings re- Specialsit Anthony Rinaldi, center, and trader Fred DeMarco with the effects of Toys R for $3.3 billion in cash and
ports. Toy makers slumped work on the floor of the New York Stock Exchange, Monday, Us bankruptcy. Rival Mattel stock.
after Hasbro's latest quar- Oct. 22, 2018. also declined, shedding 0.2 ENERGY: Benchmark U.S.
terly results disappointed Associated Press percent to $14.19. crude dipped 0.2 percent
investors. ON THE HOT SEAT: Lennox to $68.95 per barrel in New
KEEPING SCORE: The S&P index of smaller-company name companies report International shares slipped York. Brent crude, used
500 index fell 9 points, or stocks picked up 1 point, or their latest results, including 0.3 percent to $192.54 af- to price international oils,
0.4 percent, to 2,758 as of 0.1 percent, to 1,543. Caterpillar, Amazon and ter the maker of residen- was flat at $79.80 per bar-
1:30 p.m. Eastern Time. The EARNINGS SEASON: Inves- Google's parent company, tial heating and cooling rel in London. The slide in oil
index is on course for its tors have been worried in Alphabet. products reported quar- prices weighed on energy
worst month in more than recent weeks about po- "The earnings results have terly revenue that fell short stocks. Halliburton fell 3.3
three years. The Dow Jones tential threats to corporate the potential to stabilize the of analysts' forecasts. The percent to $36.32.
Industrial Average lost 133 growth, including rising market, but what investors company also lowered its BOND YIELDS: Bond prices
points, or 0.5 percent, to interest rates, trade ten- are really keen on hearing fiscal year earnings esti- were little changed. The
25,311. The average was sions between the U.S. and from companies is what the mate. yield on the 10-year Trea-
down briefly by more than China, and some sluggish sustainability of the earn- COSTLY DELAY: Bristol-My- sury held at 3.19 percent.
200 points. The tech-heavy reports about housing con- ings outlook is, especially in ers Squibb declined 5.6 CURRENCY: The dollar
Nasdaq recovered from struction and sales. light of the concerns of the percent to $51.24 after the strengthened to 112.72 yen
an early tumble, gaining This week marks the peak potential impact from tar- drugmaker said regulators from 112.60 yen on Friday.
27 points, or 0.4 percent, of the quarterly earnings iffs," said Laura Kane, head want three more months to The euro fell to $1.1473 from
to 7,476. The Russell 2000 calendar as many big- of Investment Themes review data from a poten- $1.1510.q

Hasbro, trying to find footing, posts weak 3Q

By MICHELLE CHAPMAN edged they've been hurt Revenue of $1.57 billion
NEWARK, N.J. (AP) — Has- this year by the shuttering also missed analyst expec-
bro, wrestling with the de- of Toys R Us stores, the larg- tations for $1.71 billion. Has-
mise of Toys R Us and elu- est independent toy seller bro experienced a 24 per-
sive shoppers spending in the world. cent drop in international
a lot more on high-tech It is the first full quarter that revenue, with Europe fall-
gadgets, fell well short of the company has been ing 29 percent, Latin Amer-
third-quarter expectations without Toys R Us as a cus- ica slipping 16 percent and
Monday and said it will cut tomer. the Asia Pacific region de-
some jobs to save costs. "We continue to believe clining 14 percent.
The toy maker, whose this is a near-term retail dis- Tablets and smartphones
brands include Monopo- ruption that will last for the have become the most
ly and Play-Doh, did not next few quarters," Chair- desired toys in many house-
specify the exact number man and CEO Brian Gold- holds, and that is taking a
of layoffs, but said it will af- ner said during a confer- toll on the sale of more tra-
fect a "mid-single digit" per- ence call. In this April 26, 2018, file photo, the Star Wars Hans Solo Mighty ditional playthings.
centage of its worldwide Sales of games and toys at Muggs, by Hasbro, are demonstrated at the TTPM 2018 Spring Sales fell for Nerf, My Little
workforce. Hasbro had brick-and-mortar stores fell Showcase, in New York. Pony and Transformers
about 5,400 employees at in the quarter, but Goldner Associated Press products in the quarter,
the end of last year; a 5 said that online point-of- but the Pawtucket, Rhode
percent cut would put the sale climbed by the high- tured about one third of said. Island-based company did
layoffs at about 270 jobs. single digits at the same the U.S. and Canada Toys Hasbro Inc.'s third-quarter put up some very strong
Hasbro said it will absorb time. R Us revenues heading into earnings slipped to $263.9 numbers in the same pe-
charges of as much as $60 The lost Toys R Us revenue the holiday. million, or $2.06 per share. riod last year thanks to new
million in the next quarter hurt Hasbro most notably "We are successfully man- Adjusted for pretax gains, My Little Pony and Trans-
related to paying sever- in the U.S., Europe, Austra- aging retail inventory and per-share earnings were formers movies.
ance. lia and Asia, contributing to it is down significantly in the $1.93, far below Wall Street Hasbro's stock tumbled 5
Mattel, Hasbro's rival, said the company's 12 percent U.S. and in Europe, where projections for per-share percent in morning trading
in July that it would cut revenue decline overall for we are aggressively work- earnings of $2.24, accord- Monday. Shares of Mattel
more than 2,200 jobs. Both the quarter. Goldner said ing to clear excess inven- ing to a survey by Zacks In- Inc., which posts earnings
toy makers have acknowl- the company has recap- tory by year end," Goldner vestment Research. Thursday, fell 2 percent.q