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

 


While you were sleeping: Groupon, Whole Foods

While you were sleeping: Groupon, Whole Foods

May 8 (BusinessDesk) – Wall Street was mixed as the promise of ongoing monetary support to help the US economy kick into higher gear was muted by concern about the outlook for corporate earnings from companies including Groupon and Whole Foods.

With about an hour of trading left in the day in New York, the Dow Jones Industrial Average climbed 0.58 percent, while the Standard & Poor’s 500 Index rose 0.37 percent. The Nasdaq Composite Index slid 0.72 percent, as technology stocks fell further out of favour.

Gains in shares of American Express and Verizon Communications, both up 1.8 percent, helped propel the Dow higher.

US Federal Reserve Chairman Janet Yellen told Congress both the US economy and the American jobs market have continued to improve, but stressed that the Federal Open Market Committee plans to maintain the stream of easy money.

“In light of the considerable degree of slack that remains in labour markets and the continuation of inflation below the committee's 2-percent objective, a high degree of monetary accommodation remains warranted,” Yellen told the Joint Economic Committee.

Last week the Fed lowered its monthly bond-buying program by US$10 billion to US$45 billion.

“With the harsh winter behind us, many recent indicators suggest that a rebound in spending and production is already under way, putting the overall economy on track for solid growth in the current quarter,” Yellen said. “One cautionary note, though, is that readings on housing activity—a sector that has been recovering since 2011—have remained disappointing so far this year and will bear watching.”

Indeed, a Labor Department report on Wednesday showed a gauge of US employee productivity reported the weakest reading in a year in the first quarter, declining at a 1.7 percent annualised rate. Weather was seen as a key reason for the result.

Meanwhile, technology stocks continued their downward slide, as investors reassess some of the loftiest valuations. Shares of Groupon sank, last down more than 20 percent, as the company’s sales outlook fell short of expectations.

Shares of Yahoo! fell, last down 6.1 percent. The company is selling about 40 percent of its stake in Alibaba as the Chinese tech company on Tuesday filed for an initial public offering.

“You’re seeing a brutal shift from growth and momentum investing to more value-based investing,” Chad Morganlander, a fund manager at Stifel Nicolaus & Co, told Bloomberg News.

In other news, Whole Foods shares shed nearly 19 percent after the company missed quarterly profit estimates and then downgraded its forecast for annual earnings amid increased competition.

In Europe, the Stoxx 600 Index ended the day at 336.03, close to where it had started. The UK’s FTSE 100 edged a couple of points lower to close at 6,796.44. However, France’s CAC 40 gained 0.4 percent, while Germany’s DAX added 0.6 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news