Democrat and Chronicle from Rochester, New York on October 24, 2015 · Page B4
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Democrat and Chronicle from Rochester, New York · Page B4

Rochester, New York
Issue Date:
Saturday, October 24, 2015
Page B4
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4B E3 USA TODAY—DEMOCRATANDCHRONICLE SATURDAY,OCTOBER24,2015 VALEANT PHARMACEUTICALS FACES SECURITIES LAWSUIT Embattled drugmaker Valeant Pharmaceuticals International faces a securities lawsuit over its business practices. Filed on behalf of investors and seeking class-action status, the action accuses Valeant and company officials of making false and misleading statements about the Canada-based firm’s fi- nances and operations. The lawsuit comes amid a short- seller’ s allegations that Valent created “phantom accounts” as part of a purported fraud to deceiv e auditors. AMERICAN AIRLINES’ REVENUE FALLS, PROFIT RISES American Airlines’ third quarter net profit nearly doubled from a year ago to $1.7 billion, largely due to lo w er fuel costs. But total rev enue fell 3.9% to $10.7 billion as its largest business — fl ying passenger s on mainline fl ights — r eported a 5.4% decline in revenue. Its cargo business also r e- ported a 16% r ev enue fall. The earnings report comes a week after American combined its reserv ation system with the former US Airways. They completed their merger in December 2013. SKECHERS’ SALES RISE BUT MISSES EARNINGS Skechers USA shares lost a third of their value Friday after the shoemaker reported a quarterly adjusted profit of 43 cents a share, falling 22% shy of the profit Wall Street analysts were expecting, S&P Capital IQ says. Shares fell $14.60 to end Friday at $31.59. Still, the company’s growth has been strong. Re venue during the quarter rose 27% to $856 million. Net income increased 30% to $66.6 million. UNITED, MECHANICS UNION AGREE ON NEW CONTRACT United Continental Holdings said Friday it has reached an agreement with its mechanics union, the International Brotherhood of Teamster s, for their first joint labor contract since United Airlines and Continental Airlines completed their merger in 2010. About 8,600 mechanics and r elated emplo y ees will vote to accept or reject the six-y ear contr act. The agreement arriv es about six weeks after former CEO Jeff Smisek left the company. United is still engaged in mediated negotiations with the Association of Flight Attendants. MONEYLINE AMERICAN AIRLINES USA SNAPSHOTS © Referral tenure Source iCIMS Content Strategy/ Bureau of Labor Statistics JAE YANG AND JANET LOEHRKE, USA TODAY While the average tenure for workers is 4.6 years, majority of referrals stays over 5 years INDEXCLOSECHANGE Nasdaq composite5031.86 x 111.81 Standard & Poor’s 5002075.15 x 22.64 Treas. note, 10-year yield2.09% x 0.06 Oil, lt. sweet crude, barrel $ 44.66 y 0 .72 E uro (dollars per euro) $ 1.1005 y 0 .0108 Y en per dollar121.38 x 0.64 SOURCES USA TODAYRESEARCH, MARKETWATCH.COM DOW JONES INDUSTRIAL AVG. 15 7.54 17,450 17,500 17,550 17,600 17,650 17,700 9:30 a.m. 17,489 4:00 p.m. 17,647 FRIDAY M ARKETS NEWS MONEY AUTOS TRAVEL SPORTS LIFE I nvestors just got a big reminder of the awesome profit potential of tech companies, when five tech titans scored a total of $10 billion in one day Friday. Five of the best known executives in tech — Je rey Bezos of Amazon, Larry Page and Sergey Brin of Alphabet, Bill Gates of Microsoft and Mark Zuckerberg of Facebook— together hauled in more than $10 billion in gains Friday from their stocks following astounding earnings reports. That’s a big slice of the $90 billion in total market value cre- a tion minted Friday for all investors who own these shares. T he biggest winner is Je rey B ezos, the visionary CEO who morphed Amazon from an online b ookseller into a global provider of products that range from cloud s ervices to consumer goods. Bezos hauled in $2.9 billion himself thanks to the stock’s 6.2% jump to close at $599.03. Amazon shares soared after the company delivered an adjusted quarterly profit of 17 cents a share, thrilling investors who were braced for a loss of 13 cents a share. Not far behind is Larry Page, CEO of Alphabet, which is the parent company of Google. Shares of the company gained 5.6% Friday to $719.33 after topping analysts’ forecasts for the third quarter by 2% when it reported results Thursday night. A djusted profit came in at $7.35 a share, which was up 16% from t he same period a year ago. T hat massive pop in the stock went straight to Page’s pocket- b ook, adding $2.5 billion. Sergey Brin, Alphabet’s other top share- h older and co-founder, scored $2.4 billion as well. Bill Gates’ Microsoft is back, too. Gates, who has gradually sold shares over the years to fund his global philanthropic goals, still owns 223.4 million shares of Microsoft. That’s enough for him to generate a $1.1 billion gain, thanks to Microsoft’s massive 10% stock gain to $52.87. Microsoft’s shares jumped by a larger percentage than any of the other big tech stocks following a resoundingly strong profit report from the company. T he report highlighted success in the cloud, as well as with its O ce 365 and Windows 10 opera ting system. Microsoft reported an adjusted quarterly pro fi t of 67 c ents a share, beating expectations by 14%. I nvestors are so giddy about tech that they’re pouring into shares of companies that haven’t even reported yet. Facebook shares Friday rose 2.5% to $102.19 — breaking the $100 a share barrier for the first time. That’s enough to add $1.1bil- lion to CEO Zuckerberg’s wallet —even though the social networking company doesn’t report profits until Nov. 4. DAVID PAUL MORRIS, BLOOMBERG KIMIHIRO HOSHINO, AFP/GETTY IMAGES ANDREW GOMBERT, EPA CRAIG BARRITT, GETTY IMAGES FOR GLOBAL CITIZEN DAVID PAUL MORRIS, BLOOMBERG HOW 5 TECH T ITANS MADE $10B IN ONE DAY LARRY PAGE, ALPHABET, $2,480 SERGEY BRIN, ALPHABET, $2,423 JEFFREY BEZOS, AMAZON, $2,912 BILL GATES, MICROSOFT, $1,081 MARK ZUCKERBERG, FACEBOOK, $1,074 BIGGEST PAPER WEALTH GAINS OF TECH TITANS EXECUTIVE, COMPANY, FRIDAY STOCK GAIN ($ MILLIONS) Bezos leads way as big earnings reports lead to big bucks Matt Krantz @mattkrantz USA TODAY The fervor over a drug company’s decision to hike the price of a drug used to treat a potentially deadly parasitic disease has drawn at least one market competitor to attempt an alternative. Sa n Diego-based Imprimis Pharmaceuticalssaid it would oe r customized versions of its drugsfor less than $1 a pill as an alternativ e to Daraprim. Turing Pharmaceuticals was indundate d with criticismlast month when it attempted to rais e the price of Dara- pri m by more than 5,000%, fro m $13.5 0 a pil l to $750. The Food and Drug Administration-approved Dara- prim is used to treat toxoplasmosis, a parasitic disease that aicts people with weakened immun e systems, such as those with AIDS and pregnant women. Investor s applauded Imprimis, driving its shares up 17. 4% to $7.01 Friday. To be sure, the FDA has not approve d Imprimis’ compounded drug formulations as a rec- ommende d treatment for toxoplasmosis. But doctor s ca n pre- scrib e the medications for individuals when they perceive it to be a viable alternative treatment. The Imprimis oral capsules — which are customize d formulations of its pyrimeth- amine and leucovorin treatment s — will be offered starting at $99 for a 100- count bottle. “Recent generic drug price increase s have made us concerned and caused us to take positive actio n to address an opportuni- t y to help a needy patient population,” Imprimi s CE O Mar k L. Bau m said in a statement. “While we respect Turing’s right to charge patients and insurance companies whatever it believes is appropriate, there may be more cost-eective compounded options for medications.” A Turing spokesperson didn’t directly address the move by Imprimis , but in an earlier press release the company said its “goa l has been to ensure that every patient who needs Daraprim ha s ready and aordable access to it.” Nathan Bomey USA TODAY BLOOMBERG VIA G ETTY IMAGES Martin Shkreli Drug company attempts $1 alternative to Daraprim Wall Street ended the week on abullish note as stocks surged Friday after strong earnings results from the key tech sector and an interest rate cut by China to stimulate flagging growth in the world’s second-biggest economy. News that China’s central bank was cutting its benchmark lending rate by a quarter of a percentage point gave stock markets around the globe a boost as Wall Street built on Thursday’s big rally, when the Dow Jones industrial average jumped more than 320 points and other major U.S. stock indexes rose 1.7%. The Dow rose Friday about 158 points, or 0.9%. The Standard & Poor’s 500 stock index jumped 1.1% to 2075, leaping back into positive territory for the year after dropping more than 12% this summer in the market’s first o cial correction in four years. The Nasdaq composite index finished up 2.3% to 5032, getting abig lift from better-than-expected earnings from a trio of blue- chip tech stocks after Thursday night’s closing bell. Andrew Adams of money- management firm Raymond James describes the rally as a “stampede.” China’s latest move to spur economic activity and keep growth near or at its 7% annual target this year followed hints Thursday from the European Central Bank that it, too, is considering providing more stimulus to the eurozone economy later this year. At home, the Federal Reserve looks like it has shelved plans to hike short-term interest rates this year. Tech stocks jumped following earnings beats from Microsoft, Amazon.comand Google parent Alphabet. Shares of Microsoft surged 10%, Alphabet shot up 5.6% and Amazon rose 6.2%. S&P back in black for 2015 Tech earnings, China move spark Wall St. r ally; Nasdaq up 2.3% Adam Shell USA TODAY

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