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Oilfield woes trim Kirby earnings

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A Kirby towboat waiting for its next departure in the Houston Ship Channel. Photo: Sarah Scully, HC Staff / Houston Chronicle

A Kirby towboat waiting for its next departure in the Houston Ship Channel.

Kirby Corp.'s fourth-quarter earnings were hurt by declines in oilfield activity, the company said Thursday.

The Houston company ships oil and petroleum products on barges in inland and coastal U.S. waterways, and builds and repairs diesel engines used for pumping oil and gas. Demand for diesel engine work plummeted. Barge demand slipped as well, and the company also suffered from having to lower its prices.

"During the fourth quarter, the price volatility and generally lower prices of commodities impacted demand in both our marine transportation and diesel engine businesses," CEO David Grzebinski said in a statement.

Net earnings for the fourth quarter were $50.7 million, compared to $68.1 million a year earlier, and 94 cents per share, down from $1.19.

Revenue in shipping fell to $400 million in the fourth quarter from $429 million a year earlier, while in diesel engine services, Kirby saw revenue drop to $84 million for the quarter from $239 million.

In November Kirby sold a diesel engine business, UE Compression, due to low demand.

For the year, Kirby brought in $226.7 million, or $4.11 per share, compared to $282 million, or $4.93 per share, in 2014.

Kirby's stock closed Thursday at $48.49, down 4 percent.


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Amazon stock dives as sales, earnings disappoint

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SAN FRANCISCO - Amazon missed Wall Street expectations, sending shares in the high-flying stock diving.

The Seattle retailer reported $1 earnings per share on sales of $35.7 billion.

The consensus earnings estimate had been $1.58 per share on revenue of $35.98 billion, according S&P Capital IQ consensus estimates.

Amazon stock (AMZN) was down 11.3% on the news in after hours trading Thursday.

Amazon’s own guidance for the fourth quarter was that would make revenue of between $33.5 and $36.7 billion.

Revenue increased 22% for the holiday quarter.

The Seattle online retailer's income was $482 million, up from $214 in the same quarter a year ago.

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US stocks rise, led by gains for energy and tech companies

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In this Friday, Nov. 13, 2015, photo, the American flag flies above the Wall Street entrance to the New York Stock Exchange, in New York. U.S. stocks are wavering between small gains and losses Thursday, Jan. 28, 2016, following a sharp sell-off the day before. Photo: Richard Drew, AP / AP

NEW YORK (AP) — Stocks are rising Thursday afternoon as the price of oil climbed for the third day in a row while key oil-producing nations discuss cuts in production. Tech stocks are rising, led by big names like Amazon and PayPal. Drugmakers are trading lower.

KEEPING SCORE: The Dow Jones industrial average added 141 points, or 0.9 percent, to 16,085 as of 3:25 p.m. Eastern time. The Standard & Poor's 500 index edged up 12 points, or 0.6 percent, to 1,896. The Nasdaq composite index gained 39 points, or 0.9 percent, to 4,507.

OIL CLIMBS: The price of oil rose as the Russian government continued talks with Saudi Arabia and OPEC about cutting production. U.S. crude rose 92 cents, or 2.8 percent, to $33.22 a barrel in New York. Brent crude, a benchmark for international oils, gained 79 cents, or 2.4 percent, to $33.89.

The price of U.S. oil has climbed 9.5 percent over the last three days.

Oil prices have been on a long, steep slide since 2014 as world stockpiles hit extremely high levels and investors fear demand will get weaker. Last Wednesday U.S. oil closed at a 12-year low of $26.55 a barrel.

ENERGY STOCKS: Oil and natural gas producer Devon Energy rose $2.26, or 9.2 percent, to $26.75. Oil company Hess, which rose almost 6 percent Wednesday after it said it will cut more spending, picked up another $3.23, or 8.8 percent, to $40.08.

FACEBOOK GETS LIKES: Facebook surged after reporting that its profit more than doubled in the fourth quarter. The social networking site gained another 46 million users, giving it 1.59 billion around the world. The stock rose $14.97, or 15.8 percent, to $109.42, on pace for its best day in two years.

SO DO OTHER TECH STOCKS: Facebook's results lifted the four big-name "FANG" stocks: Facebook, e-commerce giant Amazon, streaming video company Netflix and search engine operator Google. Amazon advanced 7 percent and Google's parent company, Alphabet, added 4 percent. Neflix gained 3 percent.

"Since Facebook killed it yesterday, the others are enjoying a rally," said Wedbush analyst Michael Pachter. "Facebook use is completely independent of Amazon use, but investors blindly bid up all of them when one does well."

Amazon will report its fourth-quarter results after the market closes Thursday, and Pachter said that could lead to more gains for the four stocks.

BID LOWER: E-commerce site eBay lost $3.27, or 12.4 percent, to $23.15 after its guidance for the current quarter and the year disappointed investors. Its former payment unit PayPal reported strong results and added $2.42, or 7.7 percent, to $34.01. PayPal was spun off from eBay in July.

"While it is safe to say Amazon won this holiday season, eBay clearly lost," said Wedbush analyst Gil Luria.

A GOOD FIT: Sports apparel maker Under Armour reported a larger-than-expected profit and better revenue than analysts had forecast. The company said shoe revenue almost doubled on strong sales of Stephan Curry basketball sneakers. Its stock climbed $15.19, or 22.1 percent, to $83.77, putting Under Armour on pace for its biggest one-day gain in two years.

FEELING SICKLY: Companies that make complex, costly drugs tumbled. Cancer drug maker Celgene lost $5.48, or 5.4 percent, to $96.83 after its 2016 estimates disappointed investors.

The Massachusetts attorney general's office said Wednesday it is investigating whether the high price of a new hepatitis C drug from Gilead Sciences violates state law. The stocks have fallen in recent months as controversy over drug prices has increased.

Gilead fell $1.99, or 2.2 percent, to $87.64.

The Nasdaq biotech index fell 3 percent. That index hit a record high in July and has lost about a third of its value since then.

HEALTH CARE SLIPS: Other health care stocks also struggled. Abbott Laboratories lost $3.56, or 8.8 percent, to $36.91 after the maker of infant formula, medical devices and drugs posted quarterly profits that disappointed investors. Prescription drug distributor McKesson gave up $6.03, or 3.6 percent, to $160.89 following its quarterly report.

CATERPILLAR DIGS IN: Construction and mining equipment maker Caterpillar reported better-than-expected quarterly results even though the company is struggling with lower commodity prices and a weakening global economy. It rose $2.69, or 4.6 percent, to $61.01.

JUNIPER BURIED: Computer network equipment maker Juniper Networks tumbled after releasing disappointing forecasts for the current quarter. The company also said its chief financial officer was leaving. The stock lost $4.14, or 15.6 percent, to $22.40.

OUT OF STOCK: Equipment rental company United Rentals reported a smaller fourth-quarter profit and less revenue than Wall Street expected. Its stock fell $10.18, or 18.2 percent, to $45.66.

OVERSEAS: Germany's DAX fell 2.4 percent and France's CAC-40 gave up 1.3 percent. The FTSE 100 index of leading British shares lost 1 percent. Japan's benchmark Nikkei 225 index gave up early gains to end 0.7 percent lower. The Shanghai Composite Index in mainland China closed 2.9 percent lower.

METALS: Gold declined 20 cents to $1,115.60 an ounce. Silver fell 22.7 cents, or 1.6 percent, to $14.232 an ounce. Copper lost 1.3 cents to $2.052 a pound.

OTHER ENERGY TRADING: Wholesale gasoline rose 3.3 cents to $1.079 a gallon. Heating oil rose 0.6 cents to $1.031 a gallon. Natural gas rose 2.5 cents to $2.182 per 1,000 cubic feet.

BONDS, CURRENCIES: The yield on the 10-year Treasury note was unchanged at 2 percent. The euro rose to $1.0963 from $1.0907 late Wednesday. The dollar rose to 118.73 yen from 118.64 yen.

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Google tax row: What’s behind the deal?

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Google's Dublin HQGoogle's Dublin headquarters which uses the UK office as an agency

The agreement between Google and the UK tax authorities to pay £130 million in back taxes in the UK has been widely criticized as too lenient.

Chancellor George Osborne described the deal as a "victory", while Labour's John McDonnell said the sums were "trivial".

Meanwhile there are reports that some European tax authorities are chasing Google for far bigger tax bills.

We look at how the UK arrived at a bill of £130m, and whether Europe can squeeze more tax out of this $66bn-a-year multi-national.

How did the UK decide Google should pay £130m?

The UK's tax authorities (HMRC) has not said how it calculated Google's tax liability "for reasons of confidentiality".

However, HMRC has agreed Google's tax affairs are legal, which implies that it sees nothing wrong with the current arrangement.

The way that works was explained by to a parliamentary committee in 2013 by Google boss Matt Brittin.

The tax is based on a fee that its UK operation receives as an agency of its Dublin office.

Mr Brittin told MPs that, as the UK is simply working for the Dublin office, the fee is based on the value of the work, along with costs such as rent and salaries.

He said: "The way we come to a conclusion on that is, if we went outside and hired other firms to do those kinds of things, what would we pay there?"

In the year Mr Brittin was referring to (2012) the fee paid to the UK office was £396m. After it had paid all its costs, the company had an accounting profit of £31m and paid tax of £6m.

All that despite the fact it had revenues in the UK of £4.9bn in that tax year.

Why Ireland?

The corporate tax rate there is just 12.5%, a lot lower than most EU countries. Although rates vary depending on turnover, UK corporate tax is 20%, in France it is 33.33% and Italy 27.5%. Germany's rate is 30-33%.

So all the revenues that pour in from sales across Europe, including the UK, end up being taxed at just 12.5% in Dublin.

There have been proposals to harmonise corporate tax rates across Europe, supported by Germany and France.

But low-tax countries led by the UK and Ireland have fiercely opposed any such moves.

According to Google, the latest arrangement with the UK authorities means tax rates will stay the same, but it will increase the amount of sales activity registered in Britain rather than Ireland.

That should now increase its fee income in the UK and therefore its tax bill.

Based on the extra tax paid for each of the last 10 years, i.e. £13m, Google's tax UK bill next year is unlikely to be significantly larger.

How come the Italians and French can squeeze more money out of Google?

No agreement has been reached yet on extra payment of taxes between Google and other European countries.

However, there have been reports that the Italian finance police believe the company could owe €227m (£173m) in taxes from between 2009 and 2013. Google paid €2.2m of tax in Italy in 2014.

Italy isn't a revenue earner on the UK scale but it still generated some €54.4m in sales for Google last year - again booked through Ireland.

The Italian authorities are considered to be very aggressive, and companies facing the prospect of a long drawn out Italian court cases often prefer to settle.

In France, it is thought the tax authorities may extract something like three times as much as the UK has managed to get, despite the UK employing four times as many staff and earning three times as much revenue.

Here the relationship between the company and the government is particularly bruising. Google's offices have been raided. Ministers have called Google a "colonialist", and threatened an "internet tax".

In contrast, the UK's approach, according to HMRC, is that it will "seek to handle disputes non-confrontationally and by working collaboratively with the customer wherever possible".

John Cullinane, tax policy director at the Chartered Institute of Taxation believes this strategy works.

"The UK gets more than the OECD average in terms of tax take from corporations. It has gone down in recent years but a lot of that is to do with the big banks in the UK making less profit," he says.

Isn't Europe going to look into Google's tax affairs?

On Thursday the European Union competition commission said it would examine a complaint from the Scottish National Party about Google's deal.

But the mechanism it is employing isn't strictly to combat tax-avoidance. Instead it will look at whether the deal cut with the UK tax authorities could be classed as state aid.

The Commission started applying rules that prevent unfair state-aid last year on so called "sweetheart" deals done between governments that lure big multi-nationals to set up in their jurisdiction aided by tax breaks.

In 2015 it ordered Belgium to recover money from 35, mainly European, companies and is investigating the restaurant chain McDonalds' tax arrangements in Luxembourg.

Couldn't it bring in tougher laws on tax-avoidance?

The Commission has presented its own tax-avoidance package which, if approved, members states will individually turn into laws.

The dominant principle is that companies will pay tax where the profits are made which could affect Google's tax deal with the UK.

The major clause is designed to stop companies in the EU shifting their profits to lower-tax countries in the EU such as Ireland.

Mr Cullinane said: "In the end it's up to each country to decide how to implement the directive, but as all governments have to comply with it across Europe, it undermines the argument that being tough on tax-avoidance is bad for your competitiveness."

There are a list of other measures, such as a cap on the amount of interest that companies pay on debt that is tax-deductible.

This is important because of the role that internal loans play in companies' tax-avoidance schemes. For instance, a Reuters investigation found that Starbucks UK, quite legally, was paying interest on loans from its other European operations to claim tax relief.

The final clause is a General Anti-Abuse Rule which the EC describes as a measure "to counter-act aggressive tax planning when other rules don't apply."

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Sixth Ex-Broker Cleared in London Libor Trial

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Clockwise, from top left, former brokers Darrell P. Read, Danny M. Wilkinson and Colin J. Goodman, all formerly of ICAP; Terry J. Farr and James A. Gilmour, formerly of RP Martin; and Noel Cryan, formerly of Tullett Prebon.

Credit
Matt Dunham/Associated Press, Neil Hall/Reuters, Lefteris Pitarakis/Associated Press, Neil Hall/Reuters, Toby Melville/Reuters and Neil Hall/Reuters

LONDON — A sixth former broker was acquitted on Thursday of charges that he helped a onetime trader at UBS and Citigroup manipulate an important benchmark interest rate known as Libor.

A jury at Southwark Crown Court in London found Darrell P. Read, who worked at the British financial firm ICAP, not guilty on the one remaining conspiracy count that he faced.

The jury reached a so-called majority verdict, in which at least 10 members had to vote to acquit, after it was unable to reach a unanimous decision the day before.

On Wednesday, the jury acquitted five other former brokers who worked at the British financial firms RP Martin and Tullett Prebon, as well as ICAP, of all charges and acquitted Mr. Read on a separate count of conspiracy to defraud, which came just a day after the jury began deliberating.

The verdicts represent a severe blow to the reputation of British authorities, who have been criticized for their inability to successfully prosecute financial crimes, particularly when compared with the United States Justice Department.

Continue reading the main story

Timeline

Tracking the Libor Scandal

Abuse of interest rates and the failure to address the problem is one of the most expensive scandals to hit Wall Street since the financial crisis.

After the first acquittals on Wednesday, David Green, the director of the Serious Fraud Office, which brought the criminal case, insisted that the prosecution should have been pursued.

“Nobody could sensibly suggest that these charges should not have been brought and considered by a jury,” he said in a statement on Wednesday.

Prosecutors had accused the former brokers of helping Tom Hayes, a former trader at UBS and Citigroup, and others profit by rigging the London interbank offered rate, or Libor. The rate helps determine the borrowing costs for trillions of dollars in loans.

At a separate trial, Mr. Hayes was convicted in August of conspiracy to defraud. In December, a British appeals court reduced his sentence to 11 years in prison from an original term of 14 years.

Mr. Hayes was the first person to go on trial in Britain over criminal charges related to Libor manipulation, and his case was seen as a bellwether for efforts by British authorities to pursue financial crime.

The two trials have followed a half-decade investigation that has led to billions of dollars in fines and damaged the reputations of some of the world’s biggest banks, including Barclays, the Royal Bank of Scotland, UBS and Deutsche Bank.

A third trial in London of others accused of manipulating Libor is expected to begin as early as next month.

The fraud office has accused 11 other people of manipulating the euro interbank offered rate, another key benchmark interest rate known as Euribor. The first trial related to that investigation is expected next year.

In the United States, the first trial of people accused of rigging Libor ended in the convictions of two former London-based traders in November.

In Britain, the Serious Fraud Office had accused the brokers of helping Mr. Hayes and others try to manipulate submissions of Libor as it related to the Japanese yen by so-called panel banks, financial institutions that are surveyed each day and whose information is used to calculate Libor.

To set Libor and other rates, banks submit the rates at which they would be prepared to lend money to one another, on an unsecured basis, in various currencies and at varying maturities.

The other brokers acquitted in the case are Danny M. Wilkinson and Colin J. Goodman, formerly of ICAP; Terry J. Farr and James A. Gilmour, formerly of RP Martin; and Noel Cryan, formerly of Tullett Prebon.

Mr. Read, called Big Nose, was Mr. Hayes’s main contact at ICAP and served as a link to Mr. Goodman and Mr. Wilkinson, prosecutors said. Mr. Wilkinson, called Sarge, was head of the desk where Mr. Read worked.


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JetBlue stock surges on strong earnings

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JetBlue Airways more than doubled its fourth quarter profit, compared to a year earlier, as lower fuel costs and a surge of new customers bolstered the bottom line.

The airline's net income swung from $88 million in the fourth quarter of 2014 to $190 million in the fourth quarter of 2015. Full-year net income rose from $401 million to $677 million.

Operating revenue increased 10.2% for the quarter to $1.59 billion and 10.3% for the year to $6.42 billion.

The company posted earnings per share of 56 cents, besting the S&P Capital IQ consensus analyst estimate of 51 cents.

JetBlue shares (JBLU) surged 5.9% to $22.50 in pre-market trading.

“We posted another strong quarter, producing above industry average revenue performance and running a safe and reliable operation," JetBlue CEO Robin Hayes said in a statement. "I want to thank all our 18,000 crewmembers for their terrific efforts throughout the year."

The airline is getting a substantive boost from the plunging price of oil. The average price of jet fuel the company paid in the fourth quarter was $1.68 per gallon, reflecting a 37.8% decline from a year earlier.

Despite $33 million in losses on fuel hedging in the fourth quarter, the company is positioned to benefit substantially from lower fuel prices in the first and second quarters of 2016, when it has no fuel hedges in place.

An investment in additional capacity paid off during the quarter, too, as revenue passenger miles — a gauge of how far customers paid to travel — rose 12.4%, outpacing the 10.4% capacity increase.

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Ford 2015 earnings trigger record profit sharing checks

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Ford today reported a strong fourth quarter and a full-year profit, enough to trigger record $9,300 profit-sharing checks for about 52,700 UAW workers.

The automaker reported net income of $1.9 billion in the fourth quarter and $7.4 billion for the year. Revenue was $40.3 billion for the quarter and $149.6 billion for the year.

Pretax profit in the final three months was $2.6 billion, contributing to $10.8 billion for the year. The company made money in every region except South America, with new records in North America and Asia Pacific. Europe is back in the black for the first time since 2011.

The results were not surprising as CEO Mark Fields announced earlier this month that an accounting change that reduces pensions costs would result in higher earnings than expected, which would trigger larger profit-sharing checks.

The key figure for autoworkers is the $9.3 billion pretax profit earned in North America because the profit-sharing formula, negotiated with the UAW, awards $1 for each $1 million in North American profit. That makes it $9,300 for eligible employees, before taxes, compared with checks up to $6,900 earned in 2014. The previous record amount was $8,800 based on 2013 results.

Upon ratification of the new UAW contract in the fall, Ford gave workers a $1,500 prepayment. They will get the remaining $7,800 in mid-March.

The figure is more than double the $4,000 in profit sharing that workers at Fiat Chrysler Automobiles will receive Feb. 19.

The results beat Wall Street estimates for the quarter as well as the full year.

But even though Ford is fresh off its best sales year since 2000 and is working to reinvent itself as a technology company as well as an automaker, its stock has fallen about 20% over the last year and is down roughly that amount so far in 2016.

Earlier this month Morgan Stanley analyst Adam Jonas told a Detroit audience that he advises investors to sell when it comes to Ford and said there is little love for the automaker on Wall Street because there is not a positive future for traditional car companies in today's world where ride-sharing and autonomous driving will play key roles.

Shares closed at $11.85 on Wednesday, down yet again.

Earlier this year Ford said it would pay shareholders a first-quarter dividend of 15 cents per share and provide an additional 25 cents per share to stakeholders of record on Jan. 29 as part of a $1-billion supplemental cash dividend.

The record pretax profit came with strong stales of profitable pickups and utility vehicles in a year marked by a stronger economy and low gas prices. Ford expects 2016 to be as strong or better.

North America is still the profit driver and did not let up in the fourth quarter with earnings of $2 billion contributing to the year's $9.3 billion total and a profit margin of 10.2%.

The company made money in Europe for the first time in four years, reporting profits of $131 million for the fourth quarter and $259 million for the full year.

Asia Pacific earned $444 million in the final quarter and a record $765 million for the full year.

Middle East and Africa earned $13 million in the quarter and $31 million for the year.

South America remains a trouble spot. Ford lost $295 million for the quarter and $832 million for the full year.

Contact Alisa Priddle: 313-222-5394 or apriddle@freepress.com. Follow her on Twitter @AlisaPriddle

Read or Share this story: http://on.freep.com/1SLQ5et

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What Market Wildness? Consumers Remain Confident in Economy

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Despite stock market gyrations that have had traders reaching for the antacid for much of January, American consumers remain optimistic about what lies ahead for the economy and the labor market.

The Conference Board's monthly consumer confidence index rose to 98.1 for the month of January, up from 96.3 in December. (The cutoff for this month's results was Jan. 14).

Traders work on the floor of the New York Stock Exchange at the start of the trading day in New York on Jan. 20. JUSTIN LANE / EPA

According to the index, Americans' assessment of their present situation was unchanged from last month, while their sentiment about the future was rosier.

A silver lining of last decade's recession is that Americans in the market today have already confronted worst-case scenario fears and are more measured in their responses, said Andy Smith, executive vice president of investments at the Mutual Fund Store.

"People are more mindful of this idea of what's possible and what's probable," he said. "Is it possible we could deal with market Armageddon? Yes, you get the negative numbers, but one particular indicator doesn't direct the entire market."

U.S. Home Prices Rise 5.8% in November, Hit All-Time Highs in 4 Cities

The Conference Board's new results also show that Americans are more optimistic about the job market: The number of people who said jobs are "hard to get" fell by about a percentage point, and the number who expect their income to improve rose by nearly two percentage points.

"Employment, which has always been the key to consumer confidence, continues to be strong," said Lynn Franco, director of economic indicators at The Conference Board.

Confidence is also getting a big assist from persistently low gas prices, even though plummeting price of oil is considered to be a major cause behind the market's recent swings.

"I think some of this volatility is being offset by what we're seeing in terms of oil prices and prices at the gas pump," Franco said.

But Jeff Lenard, vice president of strategic industry initiatives for the National Association of Convenience Stores, cautioned that the ability of gas prices to buoy consumer sentiment might be reaching its outer limit. He said his group had observed a flattening of consumer optimism in its surveys, even as gas dropped below an average price of $2 a gallon last month.

Average Gas Price Falls Below $2 a Gallon for First Time Since 2009

One reason is that consumers don't believe low prices will stick around; another is that today's rock-bottom gas prices limit the extent of consumers' expectations that prices will fall even further, he said.

Meanwhile, the percentage of Americans surveyed by the Conference Board who characterized business conditions as "good" remained about the same from the month before, while the number saying conditions were bad fell a bit. A greater number expect business conditions to improve over the next six months, while fewer expect conditions to take a turn for the worse.

What's most important, though, is that Americans today are learning to take market volatility in stride.

"Consumers are pretty resilient (and) adapt to these big swings as they become the norm," Franco said.

"At the start of 2015, I told clients to buckle their seat belts because it is going to be a bumpy ride," financial advisor Debra Neiman told NBC News via email. "I think those who remained on the roller coaster ride expected ups and downs and were willing to go along for the ride."
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Apple and Samsung are feeling the mobile sales pinch

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Apple sold 74.78 million iPhones this time, compared to 74.5 million iPhones in the same quarter last year. That's still a ridiculous amount of hardware to move in three months, but it hasn't stopped people from wondering what's up with those slowing iPhone sales. We can chalk it up to lots of things, and there's no single, definitive answer.

People bought the iPhone 6 and 6 Plus in droves, which isn't a surprise because it represented a significant design and performance shift from the previous year's iPhone 5s. Perhaps people didn't feel the need to jump into an improved, but visually identical device after cradling their iPhones for a year — S-series iPhones historically don't make for huge sales bumps. Meanwhile, Apple CEO Tim Cook pointed out that global economic conditions were dire, with currency values declining not only in established economies like Canada and the UK, but in growing ones like Brazil and Russia. Less spending power equals fewer people shelling out for iPhones.

"We're seeing extreme conditions unlike anything we've experienced before just about everywhere we look," he said during the customary earnings call.

Whether the last three months were just a fluke or a symptom of some deeper issues remains to be seen, though. Here's the thing: no incumbent is safe from market forces and fickle shifts in consumer taste. A report from IDC released this summer forecasted global smartphone sales to slow down in 2015, and the actual numbers were even worse than they expected -- worldwide smartphone shipment growth was less than half of what we saw in 2014.

Just look at Samsung, which released a new earnings report of its own today. The Korean tech titan has spent the better part of two years releasing new phones and seeing its power in the market erode thanks to lower than expected sales and dwindling profits. That road culminated with today's release, which saw the company's mobile and IT arm make ₩2.23 trillion ($1.84 billion) off total sales of ₩25 trillion ($20.67 billion). The numbers look pretty good if you're walking into this cold, but here's the killer context.

Samsung's arc is clear if you look at how much money the company pulled in from its mobile division over time. Its last big mobile peak was a little over two years ago when it made ₩6.7 trillion ($5.55 billion) in profit on ₩36.57 trillion ($30.3 billion) in phone sales. After that, the company spent nearly a year making less and earning less profit from its phone business before slowly starting to recover. The road to that recovery hasn't been easy, naturally, and it includes no shortage of corporate shakeups and painful admissions. Remember when Samsung didn't make enough Galaxy S6 Edges to go around and had to cut prices on the regular S6 to make it sell? Ouch. Hell, Samsung is still in a tricky position — this past quarter saw a dip in mobile sales after a brief recovery, and the company's still having trouble turning big profits.

That means Samsung is moving lots of inexpensive devices, a crucial part of its strategy to bulk up its influence in developing markets like China. Upstarts like Xiaomi and stalwarts like Huawei do a great job of churning out attractive, powerful devices that sell incredibly well in their home country. A report from Canalys issued this summer pegged them as the two biggest smartphone sellers in China, with Apple and Samsung trailing in third and fourth place, respectively. Couple that pressure with even more from good, cheap devices being snapped up by the country's growing middle class and it's no wonder Samsung's been having such a tough time.

The measure of a sustainable business is seeing how it reacts to the perfect storm of economics, technical innovation and people's tastes. For now, both companies' answers are similar: build relentlessly in search of capturing more lightning in a bottle. Samsung pushed out the mid-range Galaxy A9 to help its chances in China, and will unveil its Galaxy S7 at a press conference at Mobile World Congress in Barcelona. Apple has its next-generation iPhone 7 in the works too, along with what seems to be an updated iPhone 5s to keep small phone fans across the globe happy. Innovation and the winds of global economic change might carry these titans to even higher heights; right now, though, they've just got to buckle down.

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Mobile and video views lead to Facebook making more off users

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This file photo taken on May 12, 2012 shows an illustration made with figurines set up in front of Facebook's homepage. (Joel Saget/AFP/Getty Images)
You may not realize it, but Facebook is making more off you now than ever.

The social network released its earnings for its fourth quarter and all of 2015 on Wednesday, revealing in a presentation that it makes an average of $3.73 off of each user around the world. In the United States and Canada, that figure is $13.54, up from $10.49 from the third quarter. That is largely thanks to an increase in mobile and video views — an impressive statistic, considering that both are relatively new ventures for Facebook.

The company also reported steady, if not spectacular, user growth — it now has 1.59 billion monthly active users, up 14 percent from the same time in 2014.

Still, in its fourth quarter, Facebook made more than $1 billion in profit, a first for the social network. And it made $5.8 billion in revenue, a 52 percent increase compared with the same period in 2014, easily beating analysts’ estimates.

Facebook’s increasing revenue and steady profits, along with the fact that it remains the world’s largest social media network, are more than enough to make up for any worries about growth — a problem that has plagued other tech firms such as Twitter and Apple in recent weeks. After all, Facebook clearly knows how to make more money off the customers it already has as it approaches its 12th birthday.

Cheered by the strong quarter, Facebook’s investors sent the stock up to more than $106 on the news in after-hours trading as of 5:45 p.m. The stock closed at $94.45.

The company also reported that it is making more money than ever from mobile advertising, which now accounts for 80 percent of its revenue. At the end of 2014, mobile advertising made up just 69 percent of Facebook’s ad revenue.

As the engines of commerce keep turning at Facebook, the firm’s executives and analysts are focusing more on how the company’s other bets are working.

Chief executive Mark Zuckerberg spent a significant portion of his remarks on a call with investors outlining some of those experiences.

He noted that the company continues to be strong in the messaging space, with Whatsapp and Messenger. It also has Instagram, which continues to add users and has become a crucial second advertising platform for the company.

Zuckerberg also highlighted ways that Facebook is working to improve Internet connectivity around the world, briefly discussing its Internet-beaming drones and work with transferring data by laser. He also mentioned the company’s controversial “Free Basics” program, which allows users in developing countries to access the Internet for free — but only the parts that are part of a Facebook Internet bundle. Zuckerberg did not directly address those criticisms, but vowed to keep the program going.

“Even as the world has tended to greater openness over time, in many communities we see greater fear over what a connected world and more progress means for them,” Zuckerberg said. “We’re going to keep working to give as much voice as we can [to unconnected regions].”

The firm’s biggest moonshot, virtual reality, is getting a big test in the coming months. Oculus, which Facebook bought for $2 billion, is releasing its first commercial headset. The first units are set to ship in March.

“This Oculus launch is shaping up to a big moment for the gaming community,” Zuckerberg said on a call with analysts. “Over the long term, VR has potential to change the way we live, work and communicate, as well. The launch is an important step towards the future and we’re really looking forward to seeing how people use it.”

Hayley Tsukayama covers consumer technology for The Washington Post.

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ES Morning Update January 28th 2016

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c6b46c9d-bdf2-40dd-882d-5f09955cc564Resistance levels

Lower high on the MACD's yesterday and probably a 3rd lower high today.

The Futures are rebounding from yesterday's sell off.  My thoughts are that they will hold it up until later in the day.  I'd like to short when that rising trendline is hit and hold into next week.

Oil it up today too, which should support the futures and the SPX cash.  I think this need today and/or Friday.  We could (and should) pullback some early today, but I'm not ready to call a multi-day move is "in play" just yet.

I just think there are still too many bears on board to get another multi-day move down.  We need a few more days inside that rising wedge.  Plus, I think they want to hold the market up for the monthly close this Friday as they don't

want it closing below certain support levels.  It's just a "gut" feeling on that one though...

The DeLorean Is Coming Back Thanks To This New Law, Will Have 300-400 HP

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The DeLorean Is Coming Back Thanks To This New Law, Will Have 300-400 HP [UPDATED]

Thanks to the wonderful-but-flawed low-volume “Low Volume Motor Vehicle Manufacturers Act” (H.R. 2675) , it’s now legal for the company that bought all of the old leftover DeLorean parts to start putting them together to make new DMC-12s. And this time it seems like it’ll actually happen, starting early next year.

http://jalopnik.com/new-low-volume...

The DeLorean Is Coming Back Thanks To This New Law, Will Have 300-400 HP [UPDATED]

We’ve heard this before, as far back as 2008. But it finally seems possible only now, thanks to the new law that allows low-volume manufacturers who make replicas of cars 25 years or older to not be held to the same standards as Toyota, cranking out millions of Corollas.

The DeLorean Motor Car Company issued this statement about the law and their plans to resurrect DeLorean production:

The new law provides common-sense regulatory relief for small businesses that would otherwise be treated as if they were producing millions of cars. The companies are required to register with NHTSA and EPA, and file annual production reports. The replica vehicles will be subject to equipment standards, recalls and remedies.

The vehicles must meet current Clean Air Act standards for the model year in which they are produced. The new law allows the low volume vehicle manufacturer to meet the standards by installing an engine and emissions equipment produced by another automaker (GM, Ford, etc.) for a similar EPA-certified vehicle configuration or a create engine that has been granted a California Air Resources Board (CARB) Executive Order (EO). This reasonable regulatory reform will also spur innovation, including advances in alternative-fuel and green vehicle technologies.

Very exciting news. In the DeLorean’s particular case, the definition of them as “replicars” is a bit fuzzy, because the DeLorean Motor Company of Texas bought the leftover inventory of parts from the original DeLorean company back in 1997. They say they have enough parts for about 300 cars, which makes me wonder: are these replicas if they’re being built with the same parts as the originals?

http://jalopnik.com/397981/the-fut...

While that’s an interesting philosophical question, the real interesting question is what drivetrain is going in these reborn DeLoreans? I don’t think anyone’s really hoping to get the old 2.8-liter Peugeot-Renault-Volvo V6, with its sad little stable of only 130 horses.

While the Texas company has experimented with electric DMC-12 conversions, these new cars are likely to have some large-volume manufacturer’s engine in there, to keep with the Clean Air Act provision of the law that makes these cars possible.

Here’s where they’re at on that:

... DeLorean Motor Company has been working for some time to identify a supplier for engines and other parts that must be reproduced to facilitate this production for 2017. A number of hurdles exist before production can begin, and we’re still early on in this process of determining the feasibility of moving forward.

The DeLorean Is Coming Back Thanks To This New Law, Will Have 300-400 HP [UPDATED]

I’ve tried to get an answer from the company, but so far they’ve just told me they won’t tell me yet. If I had to guess, I think some sort of GM LS V8 crate motor is a likely option, if they can get it to fit back there. I think something like Ford’s EcoBoost turbo four-cylinder from the Mustang could be interesting as well, and, as an idiot, I’d even like to see an option for the 1.0-liter EcoBoost three-cylinder, too.

Sadly, we don’t know just yet. I’ll keep trying to find out, and will update if I get any information.

The new DMC-12s are expected to cost around $100,000, and should have modernized electronics and all the things you really wouldn’t want to keep from a 1980s car.

The poor guy answering their phones today sounded pretty exasperated, tired of dealing with calls all day. That’s probably good news for the company, but I think he deserves Friday off.

UPDATE: I was finally able to talk to James Espey, the VP of the company, and while he couldn’t come out and tell me exactly what the new drivetrain would be, I did get a few good details:

• While GM is an engine option, they’re not the only ones. They’re looking at three possible suppliers, two domestic, one foreign. There’s one favorite though, and the engine that’s the frontrunner is a normally-aspirated V6 making between 300-400 HP. This seems to be the non-American company, and while the company wouldn’t comment, it may well be Japanese. It may be Toyota, but that’s just a guess.

Lotus already buys the Camry’s V6, right? They cram that into some tight areas. That 3.5-liter 2GR-FSE V6 used in the Lexus IS makes over 300 HP now; maybe that one?

• The center stack, HVAC, and some other ancillaries will be from the current-favorite supplier.

• Because it’s a rear-engine configuration, a transaxle setup will be used, though they would not tell me that supplier just yet.

• The new DeLorean will have bigger wheels, bigger brakes, and shocks from “a famous German supplier.” Bilstein?

This all sounds quite promising, and should really improve the character of the car, now that it has over twice as much power.

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Do Not Send Us Bottles of Water. Instead, Join Us in a Revolt

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Many of you have contacted me wanting to know how you can help the people of Flint with the two-year long tragedy of drinking water contaminated by the radical decisions made by the Governor of Michigan. The offer is much appreciated by those who are suffering through this and who have not drank a glass of unpoisoned water since April of 2014.

Unfortunately, the honest answer to your offer of help is, sadly, you can't.

You can't help.

The reason you can't help is that you cannot reverse the irreversible brain damage that has been inflicted upon every single child in Flint. The damage is permanent. There is no medicine you can send, no doctor or scientist who has any way to undo the harm done to thousands of babies, toddlers and children (not to mention their parents). They are ruined for life, and someone needs to tell you the truth about that. They will, forever, suffer from various neurological impediments, their IQs will be lowered by at least 20 points, they will not do as well in school and, by the time they reach adolescence, they will exhibit various behavioral problems that will land a number of them in trouble, and some of them in jail.

That is what we know about the history of lead poisoning when you inflict it upon a child. It is a life sentence. In Flint, they've already ingested it for these two years, and the toll has already been taken on their developing brains. No check you write, no truckloads of Fiji Water or Poland Spring, will bring their innocence or their health back to normal.

It's done. And it was done knowingly, enacted by a political decision from a governor and a political party charged by the majority of Michigan's citizens who elected them to cut taxes for the rich, take over majority-black cities by replacing the elected mayors and city councils, cut costs, cut services, cut more taxes for the rich, increase taxes on retired teachers and public employees and, ultimately, try to decimate their one line of defense against all this, this thing we used to call a union.

The amount of generosity since the national media finally started to cover this story has been tremendous. Pearl Jam sent 100,000 bottles of water. The next day the Detroit Lions showed up with a truck and 100,000 bottles of water. Yesterday, Puff Daddy and Mark Wahlberg donated 1,000,000 bottles of water! Unbelievably amazing. They acknowledged it's a very short-term fix, and that it is.

Flint has 102,000 residents, each in need of an average of 50 gallons of water a day for cooking, bathing, washing clothes, doing the dishes, and drinking (I'm not counting toilet flushes, watering plants or washing the car). But 100,000 bottles of water is enough for just one bottle per person -- in other words, just enough to cover brushing one's teeth for one day.

You would have to send 200 bottles a day, per person, to cover what the average American (we are Americans in Flint) needs each day. That's 102,000 citizens times 200 bottles of water - which equals 20.4 million 16oz. bottles of water per day, every day, for the next year or two until this problem is fixed (oh, and we'll need to find a landfill in Flint big enough for all those hundreds of millions of plastic water bottles, thus degrading the local environment even further). Anybody want to pony up for that? Because THAT is the reality.

This is a catastrophe of unimaginable proportions. There is not a terrorist organization on Earth that has yet to figure out how to poison 100,000 people every day for two years -- and get away with it. That took a governor who subscribes to an American political ideology hell-bent on widening the income inequality gap and conducting various versions of voter and electoral suppression against people of color and the poor. It was those actions that led Michigan's Republican governor to try out his economic and racial experiment in Flint (and please don't tell me this has nothing to do with race or class; he has removed the mayors of a number of black cities.

This, and the water crisis in Flint, never would have been visited upon the residents of Bloomfield Hills or Grosse Pointe -- and everyone here knows that). We have now seen the ultimate disastrous consequences of late-20th century, neo-conservative, trickle down public policy. That word "trickle," a water-based metaphor, was used to justify this economic theory -- well, it's no longer a metaphor, is it? Because now we're talking about how actual water has been used to institute these twisted economic beliefs in destroying the lives of the black and the poor in Flint, Michigan.

So, do you still want to help? Really help? Because what we need in Flint - and across the country - right now, tonight, is a nonviolent army of people who are willing to stand up for this nation, and go to bat for the forgotten of Flint.

Here's what you and I need to do:

1. Demand the removal and arrest of Rick Snyder, the Governor of Michigan.

When the police have an "active shooter" situation in a building, they must first stop the shooter before they can bring aid to the victims. The perp who allowed the poisoning to continue once he knew something was wrong -- and his minions who cooked the evidence so the public and the feds wouldn't find out -- must be removed from office ASAP. Whether it's via resignation, recall or prosecution, this must happen now because he is still refusing to take the aggressive and immediate action needed. His office, as recently as this past Thursday, was claiming the EPA had no legal authority to tell him what to do. You know the EPA -- that federal agency every Republican politician wants eliminated? Governor Snyder is not going to obey the law. He has covered up the crime, and I submit he has committed an act of voluntary or involuntary manslaughter. Last month I posted a meme of me holding a pair of handcuffs with the hashtag #ArrestGovSnyder:

2016-01-27-1453912255-9613407-moore.jpg
It went viral, so I posted a petition (link) to U.S. Attorney General Loretta Lynch asking her to arrest the governor -- and asking President Obama to send help to Flint immediately. As each day brought a new revelation of the Governor's corruption or incompetence, and with Rachel Maddow on a nightly tear, the momentum built. MoveOn.org and Democracy For America joined me in circulating our petition. We are now on our way to having a half-million signatures! Then Bernie Sanders became the first candidate to call for the Governor's removal. That same day, President Obama issued his first emergency order for Flint. The next night, Hillary Clinton fiercely called out the racist actions of the Governor.

You want to help? Sign the petition -- and get everyone you know to sign it. Now. Another half-million signatures could become the tipping point we need. All eyes are on Flint.

2. Make the State of Michigan pay for the disaster that the State of Michigan created.

The governor wants the president to declare Flint a federal disaster zone and have him send federal money to fix the problem. Not so fast. All relief aid for Flint currently coming from the federal government to Michigan is going through the Governor's office to disburse. That is literally paying the fox to fix the chicken coop he destroyed.

As a Michigan resident and voter, I think that the people who elected Governor Snyder must show some of that personal responsibility they're always lecturing about to the poor. The majority of my fellow Michiganders wanted this kind of government (they elected him twice), so now they should have to pay for it. This year the state treasury posted nearly a $600 million surplus. There is also another $600 million in the state's "rainy day fund". That's $1.2 billion -- just about what Flint's congressman, Dan Kildee, estimates it will cost to replace the water infrastructure and care for the thousands of poisoned children throughout their growing years.

And before there is any talk of federal tax dollars being used (and, yes, they will be needed), the state legislature must remove the billion-dollars' worth of tax cuts the Snyder administration gave the wealthy when he took office. That will go a long way to helping not just Flint but Michigan's other destitute cities and school districts.

3. The federal government must then be placed in charge.

The state government cannot be trusted to get this right. So, instead of declaring a federal disaster zone, President Obama must declare the same version of martial law that Governor Snyder declared over the cities of Flint and Detroit. He must step in and appoint a federal emergency manager in the state capitol to direct the resources of both the state and federal government in saving Flint.

This means immediately sending in FEMA in full force. It means sending in the CDC to determine the true extent of not just the lead poisoning in the water, but also the latest outbreak that has been discovered in Flint -- a tenfold increase in the number of Flint people who've contracted Legionnaires Disease. There have now been 87 cases since the switch to the Flint River water, and ten people have died. The local hospital has also noted sharp increases in a half-dozen other toxins found in people's bodies.

We need the CDC. The EPA must take over the testing of the water, and the Army Corps of Engineers must be sent in to begin replacing the underground pipes. Like the levees in New Orleans, this will be a massive undertaking. If it is turned over to for-profit businesses, it will take a decade and cost billions. This needs to happen right now and Obama must be in charge.

4. Evacuate any and all Flint residents who want to leave now.

They've suffered long enough and, until the water is truly safe, no one should have to stay there who doesn't want to. The state and FEMA should move people into nearby white townships that are still hooked up to Lake Huron water.

5. For those who choose to stay in Flint, FEMA must create a temporary water system in each home.

One idea that has been suggested is to deliver two 55-gallon drums to every home in Flint. Each day water trucks will arrive to fill them with fresh clean glacial water from Lake Huron. The drums will have taps attached to them. People can't be expected to carry jugs of water from buildings that are miles away.

In the end, we will need to create a new economy and bring new employment to this town that created the middle class, that elected the first black mayor, and that believed in and created the American Dream. They deserved more than to be poisoned by their own Governor -- a Governor who thought that, because the people in the town were politically weak, he could get away with this unnoticed and without a fight. He figured wrong.

A crime against humanity has been committed against the people of Flint, making them refugees in their own homes. Tell me honestly: if you were living in Flint right now, and you learned that your children had been drinking lead-filled water for two years, and then you discovered that the Governor knew this and the state lied about it -- tell me, just how fast would your head be spinning? With your children now poisoned, and with the poisoning continuing... is the word "nonviolence" dominating your thoughts right now? Are you absolutely, stunningly amazed how peaceful the people in Flint have remained? Are you curious how much longer that can last? I hope it does.

If you want to help Flint, sign the petition, demand that the federal government take action, and then get involved yourself, wherever you live, so that this doesn't happen to you -- and so that the people we elect know they can no longer break the law as they rule by fiat or indifference. We deserve much better than this.

For a better world,
Michael Moore

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Back to the Future: DeLorean Going Back Into Production After 34-Year Break

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It's back to the future — and back into production — for the DeLorean.

The sleek sports car, immortalized in the "Back to the Future" movies, is going to start rolling off the assembly line next year after a 34-year break, the DeLorean Motor Company announced Wednesday.

And unlike its previous incarnations, the new DeLorean DMC-12 models will be made in America. Humble, Texas, to be exact.

"It's fantastic," DeLoreon chief Stephen Wynne told NBC News. "It is a game-changer for us, you know. We've been wanting this to happen."

Under a low volume manufacturing bill green-lighted by the feds, DeLorean will only be allowed to build 300 more of the iconic cars that Dr. Emmett Brown (Christopher Lloyd) turned into a time machine in the movies. And each car will set buyers back at least $100,000, depending on the engine.

Universal Pictures Home Entertainment

Wynne said they will update the engines but have no plans to change to look of the futuristic ride (brushed stainless steel skin!) or replace the gull-wing doors.

Only 9,200 or so DeLoreans were made between January 1981 and December 1982 at the factory in Belfast, Northern Ireland, before the company went bust.

Wynne, a British entrepreneur, set up shop in Texas in 1995 and began selling refurbished DeLoreans for $45,000 to $55,000.
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Freeport-McMoRan (FCX) Stock Spikes on Debt Reduction, Higher Commodity Prices

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NEW YORK (TheStreet) -- Freeport-McMoRan (FCX - Get Report) stock is soaring by 16.79% to $4.91 in afternoon trading on Wednesday after pledging to reduce a debt load that exceeded $20 billion in the third quarter.

Along with its 2015 fourth quarter earnings release yesterday, the natural resource company announced that it is targeting $5 billion to $10 billion in divestitures, Jefferies wrote in a note. Although the company would ideally sell assets that aren't highly cash generative, selling stakes in mines such as Cerro Verde, Morenci, El Abra and Tenke is more likely.

"This is the right move, based on our analysis, and could lead to significant upside to the FCX share price. The sooner, the better," the firm continued.

Freeport McMoRan's 2016 performance will be largely determined by copper and oil prices and "how the company shapes itself from a strategic standpoint, Jeremy Sussman, an analyst for Clarksons Platou Securities, noted, the New York Times reported.

Copper prices are up this afternoon after China imported a record amount of the metal last year, and oil prices are rising on data indicating an increase in weekly demand for heating products.

Insight from TheStreet's Research Team:

Real Money's Carleton English commented on Freeport-McMoRan in a recent post on RealMoney.com. Here is a snippet of what English had to say about the stock:

[Freeport] is projecting a flat commodity market for 2016, with copper at $2 a pound, gold at $1,100 an ounce, molybdenum at $4.50 a pound, and Brent crude at $34 a barrel.

The tempered projections are in line with many of the cost-cutting measures the company announced in 2015, which included suspending its dividend, curtailing copper and molybdenum production, and cutting its oil and gas spending. Freeport also received approximately $2 billion from an at-the-market offering out of necessity, which involved nearly 210 million shares being issued as the company's stock was plunging.

At the start of the call, Adkerson acknowledged that management reviewed several scenarios in forming its capital plans and that it happens to be experiencing the worst of those scenarios now.

- Carleton English, 'Stressed Out: Freeport-McMoRan Makes Debt Reduction 2016 Priority' originally published 1/26/2016 on RealMoney.com.

Want more information like this BEFORE your stock moves? Learn more about RealMoney.com now.

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

Freeport-McMoRan's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: FCX

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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Wall Street hopes Fed will hint at dialing back rate hikes

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When the Federal Reserve breaks from its two-day meeting today at 2 p.m. ET, one Wall Street pro is hoping the Fed’s policy statement walks back Jan. 6 comments from Fed vice chairman Stanley Fischer suggesting that four interest rate hikes this year from the U.S. central bank was still “in the ballpark.”

Four rate hikes may simply be too aggressive given the rough start to 2016. Ahead of the Fed's decision later today, the Dow Jones industrial average was down about 135 points Wednesday in early trading. the 30-stock blue chip stock gauge was dragged down by a 4.5% drop in shares of Dow component, Apple (AAPL), which reported slower quarterly iPhone sales last night in its quarterly earnings report, and a nearly 9% plunge in shares of Boeing (BA), which topped quarterly profit expectations but lowered its full-year profit and revenue guidance.

Indeed, with the U.S. stock market off to one of its worst starts in history, oil prices wildly volatile, China fears still reverberating and growth worries on the rise, Wall Street is seriously second-guessing whether now really is the right time for the Fed to hike rates at the pace it has hinted at since mid-December when it raised short-term rates for the first time since 2006.

Phil Orlando, chief investment strategist at Federated Investors, says there is now a “zero chance” the Fed will tighten four times in 2016. He and the rest of Wall Street expect no change in short-term rates, currently pegged at 0.25% to 0.50%, today.

He believes Wednesday’s policy statement from the Fed is the time to let markets know they acknowledge the fresh headwinds and that they will adjust policy accordingly.

“We believe (Fed Chair Janet) Yellen has to use the policy statement to try to reset expectations on Fischer’s comments, which were bearish for markets,” Orlando told USA TODAY.

Orlando says the Yellen-led Fed, as it did last fall when it opted not to hike rates due to international turbulence and market volatility, should send a similar message today, and state it would be “inappropriate for the Fed to be aggressive in raising rates” until the outlook improves, he adds.

“I believe the Fed will take a more cautious, dovish, data-dependent approach to the rate cycle for the course of the year,” Orlando says.

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Wendy’s investigating unusual payment activity

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Wendy's is investigating "unusual activity" related to cards used in some of its restaurants.

The fast food chain launched an investigation after being alerted this month by the payments industry to possible fraudulent charges being made "elsewhere after payment cards were legitimately used at some restaurants," said spokesman Bob Bertini.

Wendy's is working with cybersecurity experts, payment industry contacts and law enforcement to look into the possible fraud. It's unclear how many cards or restaurant locations may have been affected.

"Until this investigation is completed, it is difficult to determine with certainty the nature or scope of any potential incident," Bertini said.

The possible security breach was first reported Wednesday by Krebs on Security.

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Selling 10.15 million in 2015 Toyota still top global automaker

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Toyota on Wednesday kept the title of world’s biggest automaker for the fourth straight year after saying it sold 10.15 million vehicles globally in 2015, driving past Volkswagen and General Motors.

Dented by a pollution-cheating scandal, Volkswagen earlier logged sales of 9.93 million vehicles worldwide, while Chevrolet and Cadillac maker GM moved 9.8 million last year.

Toyota shares jumped 3.80% to end at 6,881 yen ($58) in Tokyo on Wednesday, boosted by reports it is in talks with Suzuki over a partnership to build compact cars for emerging markets, including India.

Strong North American demand drove Toyota’s figures as total sales slipped 0.8% from 2014, largely owing to a slowdown in Japan where a weak economy hit demand.

Toyota is also facing sluggish sales in Thailand and Indonesia while a Japanese consumption tax hike planned for next year could spark a rush in buying -- and subsequent slowdown as prices go up.

The Japanese giant was likely to keep the top automaker crown for at least another year, but a slowdown in top vehicle market China could hurt its numbers, analysts said.

“Toyota is benefiting from the strength of the US auto market, and we expect it to continue to grow this year, so the company should keep its crown,” said Yoshiaki Kawano, a Tokyo-based analyst at research firm IHS.

“But in China, Toyota lags behind VW or Nissan”.

In the first half of the year, the German giant, whose other brands include Porsche and Audi, was set to become the world’s biggest automaker as it rode momentum in emerging economies.

But then it posted its first drop in annual sales for more than a decade, as the company was hammered by a massive pollution cheating scandal.

Volkswagen was sideswiped by stunning revelations in September that it had fitted 11 million vehicles with devices designed to dodge pollution tests.

This file picture taken on August 8, 2014 shows employees of Toyota Motor's subsidiary Toyota Motor Kyushu checking Lexus vehicles on an assembly line at the Miyata Plant in Miyawaka, Fukuoka Prefecture.
(AFP)

The US government has said it was suing VW for $20 billion in civil penalties over the scandal.

Quality issues

Toyota broke GM’s decades-long reign as the world’s top automaker in 2008 but lost it three years later to the US firm, as Japan’s 2011 earthquake-tsunami disaster dented production and disrupted the supply chains.

However, in 2012 it once again overtook its Detroit rival and has remained on top since.

On Wednesday, rival Nissan said its global sales hit a calendar-year record 5.42 million units. Including Nissan’s French partner Renault, the group’s 8.22 million combined sales put it in fourth place globally.

South Korea’s Hyundai sat in fifth spot with 8.01 million vehicles sold.

Toyota’s upbeat announcement comes despite the firm struggling to recover its reputation for safety after the recall of millions of cars around the world for various problems in recent years, including an exploding air bag crisis at supplier Takata.

Visitors check out Toyota Vitz at a Toyota showroom in Tokyo on Wednesday.
(AP)

At least 10 deaths globally and scores of injuries have been linked to the faulty airbags fitted in cars made by some of the world’s leading auto giants.

Toyota, maker of the Camry sedan and Prius hybrid, had stopped building new plants for several years, and turned its focus to quality rather than sales volume.

The company is also overhauling its production methods, vowing to slash development costs to try to offset any downturn in the market and squeeze more productivity out of existing plants.

Toyota is pushing further into the fast-growing market for environmentally friendly cars, especially in China where officials are struggling to contain an air pollution crisis.

It has also released its first mass-market hydrogen fuel-cell car, the Mirai, and redesigned the top-selling Prius.

Volkswagen’s new chief executive, meanwhile, has said his firm was abandoning its ambition to become the world’s biggest carmaker.

“For me, this obsession with unit sales and the ambition to constantly reach new records makes no sense,” Matthias Mueller told the weekly WirtschaftsWoche in an interview published in December.

“I’m not going declare sheer size as an end in itself.”

His predecessor Martin Winterkorn had focused on VW overtaking Toyota as the world’s biggest carmaker by 2018.

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Chase ATMs to give cash via smartphones

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NEW YORK — The machines are definitely getting smarter.

JPMorgan Chase said it is upgrading its entire fleet of ATMs this year to include several new perks — including the option to withdraw money using a smartphone.

The first phase of the rollout will let customers withdraw cash from a Chase ATM using a one-time pin number that will be sent to their smartphones, said JPMorgan spokesman Michael Fusco.

In the second phase, customers will be able to withdraw cash simply by tapping their phones to the ATM, using the same technology that enables Apple Pay and other payment apps, Fusco said.

"This is not replacing debit cards, just giving customers another convenient option if they do not have their debit card with them," Fusco said in a statement.

The ATM upgrades will provide other perks, including:

► Withdrawals of up to $3,000 on ATMs located inside branches and during branch hours.

► The ability for customers to choose a custom withdrawal amounts. Rather than multiples of $20’s, a customer may request $48 and receive it in the form of one $20, four $5’s, and eight $1’s.

► Check cashing via ATM.

► By the end of 2017, customers will also be able to make their Chase credit card and mortgage payments at the ATM.

The changes comes as Chase's monthly ATM transactions outpace the number of teller transactions in its branches, and as JPMorgan has been cutting costs, including staff, to boost profits.

JPMorgan has ATMs at more than 1,500 branches.

The bank is aiming to increase the number of teller transactions processed by ATMs to 90% from a current rates of 60% by the end of 2016.

Follow USA TODAY reporter Kaja Whitehouse on Twitter: @kajawhitehouse

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FCA profits fall 40% to $410 million for 2015

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2015 was a mixed year for FCA. Jeep sales soared past 1.2 million and the automaker continued to earn profits in North America. But sales fell sharply in Brazil and troubles emerged in China.

Fiat Chrysler Automobiles on Wednesday said it earned a profit of $2.2 billion in 2015 (2.03 billion euro) when Ferrari is included but that number drops to just $410 million (377 million euro) when results from the exotic sports car brand are removed -- illustrating why the automaker's stock has dropped since the start of the year when Ferrari was spun off into a separate brand.

FCA's profits soared 91% when Ferrari is included from $1.15 billion in 2014 but dropped by 40% from $687 million in 2014 when Ferrari is included because of higher recall costs and one-time charges related to a plan to realign the company's capacity in North America. Details about that plan will be announced later today.

The automaker took a charge of $906 million (834 million euro) during the fourth quarter to cover costs related the realignment of its North American production and a charge of $827 million (906 million euro) related to higher recall costs.

FCA's stock has dropped about 45% from $13.99 per share on Dec. 31 to $7.61 per share on Tuesday. The automaker officially spun off Ferrari into a separate company at the start of the year.

The automaker also said its total revenue increased 18% to $120 million (110.6 billion euro) in 2015 compared with $101.7 billion (93.6 billion euro) in 2014 as sales of its Jeep brand continued to soar globally.

2015 was a mixed year for FCA as the automotive industry thrived in North America but economic woes hit Brazil and China.

FCA continued to be profitable in the U.S. where industry sales hit a historic high of 17.47 million and the Auburn Hills automaker kept its sales streak alive with 67 consecutive months of year-over-year sales gains.

Globally, FCA sold more than 1.2 million Jeeps as the rugged SUV brand continued to be the automaker's best selling brand. Jeep's sales gains were helped by the launch of the Renegade -- a compact SUV -- in Brazil, Europe and the U.S.

Higher Jeep sales helped FCA sell a total of 4.61 million new cars and trucks in 2015, up slightly from 4.61 million in 2014. However, FCA fell short of the 4.8 million vehicles it thought it could sell for the year.

Wall Street also focused attention on Marchionne's thesis, announced in April, that the automotive industry must consolidate through mergers to deal with rapidly rising product development, regulatory and technology costs.

FCA revealed the Alfa Romeo Guilia sedan in Milan in June as part of a plan to relaunch the Italian premium brand globally. But the Guilia has yet to go on sale and FCA is planning to overhaul its plan for the brand. Maserati's relaunch got off to a good start in 2014 but its sales fell 22% over the first nine months of 2015.

For those and other reasons, FCA is expected to also unveil an overview of its five-year plan today.

In 2014, Marchionne said FCA would spend $52 billion (48 billion euro) over five years in his quest to boost annual sales of cars and trucks from 4.6 million in 2014 to 7 million by 2018.

Contact Brent Snavely: 313-222-6512 or bsnavely@freepress.com. Follow him on Twitter @BrentSnavely. 

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