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

 

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news