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

 


While you were sleeping: Wal-Mart, Kohl’s disappoint

While you were sleeping: Wal-Mart, Kohl’s disappoint

May 16 (BusinessDesk) – Wall Street declined as disappointing earnings from Wal-Mart and a surprise drop in US industrial production exacerbated nervousness about equities trading near record highs.

With about an hour of trading left in the day in New York, the Dow dropped 1.20 percent, the Standard & Poor’s 500 Index shed 1.06 percent, while the Nasdaq Composite Index sank 0.98 percent.

Slides in shares of Wal-Mart and Chevron, down 2.3 percent and 2.2 percent respectively, led the decline in the Dow.

Bucking the trend, shares of Cisco jumped 7.1 percent, for the largest gain in the Dow. The company predicted fourth-quarter profit and sales that surpassed expectations.

Cisco’s latest quarterly revenue fell less than expected, underpinning optimism it is making progress on turning its business around.

"I'm pleased with our performance in [the third quarter]," John Chambers, Cisco’s chief executive officer, said in a statement. “Our financial results exceeded the guidance we provided last quarter as we demonstrated clear progress on returning to growth.”

Shares of Wal-Mart, however, dropped after the world’s largest retailer provided an outlook that fell short of the mark.

"Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted US sales and drove operating expenses higher than expected," Doug McMillon, Wal-Mart’s chief executive officer, said in a statement.

Kohl’s was another retailer with disappointing earnings, which sent its shares 3.1 percent lower.

The latest economic data provided confirmation of the view that the pace of US growth is accelerating. Jobless claims dropped 24,000 to a seasonally adjusted 297,000 last week, the lowest in seven years, while a separate Labor Department report showed the consumer price index rose 0.3 percent in April, up from 0.2 percent in March.

To be sure, a Federal Reserve report showed that industrial production unexpectedly slid 0.6 percent in April, following an upwardly revised 0.9 percent increase in March.

"It's still consistent with the view that the economy is going to show stronger growth in the second quarter," Josh Feinman, chief global economist at Deutsche Asset & Wealth Management in New York, told Reuters. “The underlying momentum is improving but it's not definitive.”

In Europe, the Stoxx 600 Index ended the day with a 0.9 percent slide from the previous close. The UK’s FTSE 100 gave up 0.6 percent, Germany’s DAX weakened 1 percent, while France’s CAC 40 dropped 1.3 percent.

Here, a report showed the euro-zone economy grew a lower-than-expected 0.2 percent in the first quarter from the previous three months, underpinning expectations the European Central Bank might cut interest rates next month as suggested last week by the central bank’s president, Mario Draghi. The Dutch economy shrank 1.4 percent, the largest contraction in the euro zone.

“The recovery is still more or less in train in most countries, but the headline number is disappointing and the horror show was the Dutch number,” Richard Barwell, an economist at Royal Bank of Scotland Group in London, told Bloomberg News. “We think the ECB is going to act in June, and we think it will be a package of measures.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news