Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Dow, UPS disappoint

While you were sleeping: Dow, UPS disappoint

Feb 1 (BusinessDesk) – Earnings from companies including Dow Chemical and United Parcel Service disappointed as investors await a slew of economic data including the all-important monthly jobs report tomorrow.

Shares of Dow Chemical, last 5 percent weaker, and shares of UPS, last down 2.1 percent, suffered after reporting a disappointing outlook and earnings.

"The outlook is fairly benign right now,” Brian Gendreau, a market strategist at Los Angeles-based Cetera Financial Group, told Bloomberg. “We are looking at moderate growth. Earnings picture is good. No one is talking about double-dip recession.”

In other corporate news, shares of Facebook initially fell, dropping as low as US$28.74 as the company's earnings fuelled concern about margins. The stock recovered later in the session and was last up 0.5 percent to US$31.36.

Qualcomm's earnings, however, beat estimates, boosting its stock 4.8 percent.

Of the 231 companies in the S&P 500 that have reported earnings so far this season, 69.3 percent have exceeded expectations, according to Thomson Reuters data.

Today's economic data provided a positive note after yesterday's report showing an unexpected contraction in the US economy in the fourth quarter. Business activity in the US grew more than forecast in January, with the MNI Chicago Report’s business barometer climbing to 55.6, from 50 in December.

Even so, jobless claims climbed more than predicted last week, rising 38,000 to 368,000.

The focus is on the monthly jobs report, due tomorrow. It is expected to show employers added 165,000 workers in January, according to economists’ projections in a Bloomberg survey, while the unemployment rate probably held at 7.8 percent. Economists polled by Reuters predict that the US added 160,000 jobs in January.

In afternoon trading in New York, the Dow Jones Industrial Average fell 0.18 percent, while the Standard & Poor's 500 Index declined 0.20 percent. The Nasdaq Composite Index eked out a 0.04 percent gain.

Countering the recent rise in optimism, Pimco chief Bill Gross said in his February newsletter that there's more trouble ahead for the world's biggest economy.

"Our current monetary system seems to require perpetual expansion to maintain its existence," Gross said. "The advancing entropy in the physical universe may in fact portend a similar decline of 'energy' and 'heat' within the credit markets."

In Europe, the Stoxx 600 Index finished the session with a 0.5 percent slide from the previous close. The equity benchmark still has risen 2.7 percent in January, its eighth month of gains, according to Bloomberg.

Stocks in London, Frankfurt, and Paris all ended lower.

Shares in Germany's largest lender, Deutsche Bank, advanced even as it posted a massive quarterly loss because investors welcomed news that it has boosted its capital ratio.

German unemployment provided a surprise drop in January, underpinning the Bundesbank's comments last week that Europe's engine economy was showing already signs of recovery in the first quarter of this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news