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

 


While you were sleeping: Time Warner Cable jumps

While you were sleeping: Time Warner Cable jumps

Feb 14 (BusinessDesk) – Wall Street moved higher, as a surprise deal for Comcast to buy Time Warner Cable offset a drop in Cisco shares and weaker-than-expected US retail sales and weekly jobless claims.

Shares of Time Warner Cable soared, last up 9.3 percent, after Comcast agreed to buy the cable company. Shares of Comcast were last 4 percent weaker.

“This leaves Comcast as the sole king of the cable hill, with John Malone and Charter hitting a brick wall in their hopes of becoming a close No. 2,” Richard Greenfield, an analyst with BTIG, told Bloomberg News. “This is a game changer for Comcast.”

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.10 percent, the Standard & Poor’s 500 gained 0.17 percent, while the Nasdaq Composite Index added 0.40 percent.

Gains in shares of UnitedHealth, last up 0.9 percent, and those of IBM, last up 0.8 percent, led the Dow higher.

Shares of Cisco posted the largest slide in the Dow, last 3.9 percent weaker. The company predicted sales that fell short of expectations.

The latest US economic data were disappointing. Retail sales unexpectedly dropped 0.4 percent in January, following a revised 0.1 percent decline the previous month. Separately, jobless claims unexpectedly rose, rising by 8,000 to 339,000 in the week ended February 8.

"I don't think we're going to see clean data until probably April, since March is still expected to have bad weather, though not as severe as the winter months," Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut, told Reuters. "Right now markets are still giving the economy the benefit of the doubt."

In other negative surprises, shares of Whole Foods Market dropped, last 7.4 percent weaker, after the company downgraded its 2014 sales forecast for the second time in less than six months.

In Europe, the Stoxx 600 Index slid 0.2 percent, as did the UK’s FTSE 100. France’s CAC 40 rose 0.2 percent, while Germany’s DAX climbed 0.6 percent.

Shares of Rolls-Royce sank 13.6 percent after the company said it expected sales and profit would not increase this year as military budgets are cut in the US and Europe.

“In 2014, we expect a pause in our revenue and profit growth, reflecting offsetting trends across the business,” John Rishton, Rolls-Royce chief executive, said in a statement. “This is a pause, not a change in direction, and growth will resume in 2015.”

“Our record order book underpins our confidence in the long-term growth of our business," Rishton said.

The company’s outlook caught analysts and investors off guard.

"It's clearly shocked the market," Investec analyst Chris Dyett, who cut his profit guidance for Rolls-Royce by about 11 percent, told Reuters. “It's a weaker backdrop than we have factored in previously. It's dragged everything else down.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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