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

 


While you were sleeping: Wall Street slips from record

While you were sleeping: Wall Street slips from record

June 20 (BusinessDesk) – Wall Street slipped, pushing the Standard & Poor’s 500 Index down from the previous day’s record-high close, as retail stocks including Coach slumped on disappointing outlooks.

In the final hour of trading in New York, the Dow Jones Industrial Average fell 0.23 percent, the Standard & Poor’s 500 Index slipped 0.15 percent, while the Nasdaq Composite Index retreated 0.44 percent.

Declines in shares of Nike, down 1.2 percent, and Exxon Mobil, down 0.9 percent, led the Dow lower.

Retailers took a beating. Shares of Coach slumped, last down 10 percent. Sales at its North American stores open at least a year will fall at a mid- to high-teens percentage rate in the year through June 2015, executives said Thursday on a conference call, Bloomberg News reported.

Shares of Pier 1 Imports sank, last down 13.3 percent, after the company downgraded its full-year earnings forecast.

“The retail environment remains highly promotional and is pressuring gross profit in the near-term,” Pier 1 Imports CEO Alex Smith said in a statement.

To be sure, shares of American Apparel climbed, last up 5.25 percent, after the company said it replaced Dov Charney as chairman and suspended him effective immediately from his positions as president and CEO because of “an ongoing investigation into alleged misconduct.”

The company said it notified Charney, American Apparel’s founder, of the intent to terminate his employment “following a 30-day cure period.” American Apparel appointed John Luttrell as Interim Chief Executive Officer.

"We take no joy in this, but the board felt it was the right thing to do," newly appointed co-chairman Allan Mayer said in a statement. "Dov Charney created American Apparel, but the company has grown much larger than any one individual and we are confident that its greatest days are still ahead."

The latest economic data offered further confirmation of strength in the recovery. Initial claims for state unemployment benefits fell 6,000 to a seasonally adjusted 312,000 for the week ended June 14, according to the Labor Department.

Separately, the Philadelphia Federal Reserve Bank’s business activity index climbed to 17.8 in June, the highest since September, and up from 15.4 in May, while the Conference Board’s US leading economic index rose 0.5 percent in May, following a 0.3 percent increase in April.

Oil continued its rise, sending Brent crude to its highest level in nine months, amid concern about a disruption in supplies from Iraq, OPEC’s No. 2 producer. President Barack Obama said the US will send military advisers to Iraq after receiving a request for help from the government as it battles insurgents in the northern part of the country.

Brent for August settlement climbed as high as US$115.27 on the London-based ICE Futures Europe exchange.

Gold and silver also advanced after the US Federal Reserve on Wednesday suggested it will keep interest rates low.

In Europe, the Stoxx 600 Index finished the session with a 0.6 percent increase from the previous close. The UK’s FTSE 100 added 0.4 percent, while France’s CAC 40 and Germany’s DAX both climbed 0.7 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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