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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news