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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news