Business Briefs – October 27, 2016

Amazon Misses 3q Profit Forecasts

SEATTLE (AP) — Amazon.com Inc. shares fell in after-market trading on Thursday after the online retailer reported 3q net income that missed analyst expectations.

The company said net income tripled to $252 million, or 52 cents per share, from $79 million, or 17 cents per share, in the prior-year quarter. That missed analyst expectations of 85 cents per share, according to Zacks Investment Research. Revenue jumped 29 percent in the period. Amazon has begun to balance spending with revenue more prudently and has reported a profit in each of the past five quarters.

Twitter Cuts Staff, Kills Off Vine, Amid Pressure to Grow

NEW YORK (AP) — Twitter, seemingly unable to find a buyer and losing money, is cutting 9 percent of its employees worldwide. It is also killing off Vine, a video app where people share short video clips. While beloved by users, it never took off.

Twitter has failed to keep pace with rival social media platforms and in recent months rumors abounded that it would be acquired. CEO Jack Dorsey on Thursday brushed aside what he called “recent market speculation.”

American and Southwest Raises Base Fares by $5 Each Way

DALLAS (AP) — American and Southwest are raising fares $5 each way, the latest move by airlines to reverse a price slump that has lasted nearly two years.

Fares have been falling since airlines began adding flights and seats faster than the growth in travel demand.

Altria to Close 2 Tobacco Facilities Affecting 580 Workers

RICHMOND, Va. (AP) — Altria, the maker of Marlboro cigarettes, said Thursday that it will close manufacturing facilities in Pennsylvania and Illinois by early 2018, affecting about 580 workers. The company said about 200 jobs in different states will be available for those workers, if they choose to transfer. Altria did not say how many workers it expects to lay off. Full-time workers that do not transfer will be given a minimum of six months severance, in addition to benefits and free job training, a spokesman said.

Average U.S. 30-Year Mortgage Rate Eases to 3.47 Percent

WASHINGTON (AP) — Long-term U.S. mortgage rates declined this week, moving closer to historically low levels.

Mortgage giant Freddie Mac said Thursday the average for a 30-year fixed-rate mortgage eased to 3.47 percent from 3.52 percent last week. The benchmark rate is down from 3.76 percent a year ago and close to its all-time low of 3.31 percent in November 2012.

The 15-year fixed-rate mortgage, popular with homeowners who are refinancing, ticked down to 2.78 percent from 2.79 percent.