The daily business briefing: May 5, 2016

(Image credit: AP Photo/Mark Schiefelbein)

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1. Tesla stock soars following lower-than-expected loss
2. Oil-sands operations threatened by massive wildfire in Canada
3. Weak private payroll report drags down stocks
4. To stem losses, Humana might end ObamaCare plans in some states
5. Alibaba sales rise despite China's economic slowdown

By Harold Maass, The Week US

published 5 May 2016

1. Tesla stock soars following lower-than-expected loss

Tesla Motors shares gained as much as 7 percent in after-hours trading on Wednesday after the electric-car maker reported a quarterly loss that was slightly smaller than expected, and reaffirmed its 2016 production forecast. The company also moved up its target for building 500,000 cars per year to 2018 — two years earlier than previously planned — as it ramps up to meet "overwhelming demand" for its Model 3 mass-market car, due for delivery in late 2017. The stock had lost ground earlier in the day on the news that two top executives are leaving.

Oil prices rose by about 3 percent early Thursday as a raging wildfire near a Canadian oil-sands production area threatened production. Fighting in Libya also squeezed output there. Canadian authorities declared a state of emergency in Alberta province as the massive wildfire continued to expand after forcing the evacuation of 88,000 people in and around Fort McMurray, an oil town. At least one oil sands producer halted operations Wednesday. The blaze has destroyed 1,600 structures and now threatens the local airport.

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U.S. stocks lost ground on Wednesday after payroll processor ADP reported that private employers created fewer jobs than expected in April. ADP said companies added 156,000 jobs, far below the nearly 200,000 expected. The news fueled fears that the Labor Department's April jobs report also will be disappointing. Outplacement firm Challenger, Gray & Christmas reported Thursday that layoffs by U.S.-based companies accelerated to 65,141 in April, up 35 percent from March.

Humana on Wednesday became the latest health insurer to say it might stop selling ObamaCare coverage in some states to cut losses. Humana, which is due to be bought by larger rival Aetna, reported that its first quarter earnings had fallen by 46 percent as costs rose on its individual plans, including ObamaCare plans it sells in 15 states. UnitedHealth company said last month it was pulling out of many of the 34 states where it sells plans, and other insurers are proposing big premium hikes for Affordable Care Act plans.

Chinese e-commerce giant Alibaba reported a 39 percent rise in fourth quarter revenue, beating expectations, although its profits were slightly below forecasts. The news sent the company's American Depository shares up by 3.5 percent on Thursday. Analysts interpreted the rise in online sales, despite China's slowdown, as a sign of strength both for Alibaba and for the country's economy as a whole. "Most importantly it's a sign that the Chinese consumer may not be weakening quite yet," said Gil Luria of Wedbush Securities.

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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.