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

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news