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

 


While you were sleeping: Lululemon slides

While you were sleeping: Lululemon slides

Jan 14 (BusinessDesk) – Wall Street declined as investors awaited a slew of US corporate earnings to gauge whether, and for which companies, the pickup in the economic recovery has translated to an improvement in the bottom line.

In afternoon trading in New York today, the Dow Jones Industrial Average fell 0.38 percent, the Standard & Poor’s 500 Index slid 0.41 percent, while the Nasdaq Composite Index shed 0.32 percent. Declines in shares of Exxon Mobil and those of Walt Disney, both down 1.4 percent, led losses in the Dow.

"People are sitting on their hands, waiting for major results to figure out how strong this season may be," Douglas DePietro, managing director at Evercore Partners in New York, told Reuters.

Some already fell short of the mark. Shares of Lululemon sank, last down 15.8 percent, after the high-end yogawear retailer downgraded its earnings outlook.

"We were on track to deliver on our sales and earnings guidance through the month of December; since the beginning of January, we have seen traffic and sales trends decelerate meaningfully," Chief Financial Officer John Currie said in a statement. “Based on this recent performance and assuming these trends continue through the remainder of January, we are reducing our outlook for the fourth quarter.”

Shares of Merck, however, jumped, last up 6 percent, on the company’s progress in developing new drugs including for skin cancer and blood-clotting. The company also said it is exploring strategic options for its animal health and consumer care businesses.

“We’re taking significant and decisive action to make Merck a more competitive company, better positioned to drive innovation and growth,” Kenneth Frazier, chairman and chief executive officer of Merck, said in a statement. “We’re pleased with the solid progress we have already made against each of our key areas of focus, and we are quickly moving ahead to build on this momentum to make Merck a leaner, more agile company focused on the best opportunities to create value and advance global health.”

Shares of Juniper Networks also gained, last up 8.5 percent. The company has been targeted by Elliott Management, a New York fund run by billionaire Paul Singer, which will seek cost cuts, stock buybacks and other changes, Bloomberg News reported, citing two people familiar with the matter. Elliott is seeking talks with management and the company’s board.

In Europe, the Stoxx 600 Index added 0.2 percent from the previous close. The UK’s FTSE 100 and France’s CAC 40 both gained 0.3 percent, while Germany’s DAX rose 0.4 percent.

On commodities markets, nickel surged after Indonesia’s ban on unprocessed ore exports took effect. London Metal Exchange nickel rose 4 percent on Friday and added a further 1.4 percent on Monday.

Nickel may rise further, but a break above US$15,000 a tonne—which has capped its trading band for the past six months—could be a sell signal, a Singapore-based metals trader told Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news