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

 


While you were sleeping: Wall Street slides

While you were sleeping: Wall Street slides

Aug 6 (BusinessDesk) - Wall Street dropped amid disappointing earnings from US companies including Motorola and increased concern about escalating tension in Ukraine.

In late afternoon trading in New York, the Dow Jones Industrial Average dropped 0.96 percent, the Standard & Poor’s 500 index retreated 1.12 percent, while the Nasdaq Composite Index fell 0.92 percent.

Slides in shares of Intel and Chevron, down 3.7 percent and 2.5 percent respectively, dragged the Dow lower. Shares of Exxon Mobil slumped 2.2 percent.

The recent declines have nearly wiped out the Dow’s gains so far this year, now just up 0.2 percent in 2014. The S&P 500 is still up 4.9 percent this year.

Some of the latest earnings were disappointing. Shares of Motorola sank 4.6 percent after the company posted quarterly results that failed to meet the mark.

Shares of Target slumped, last down 4.1 percent, after the company warned its second-quarter profit will fall short of its prediction. The retailer will announce its full second-quarter results on August 20.

“While the environment in both the US and Canada continues to be challenging, and results aren’t yet where they need to be, we are making progress in our efforts to drive US traffic and sales, improve our Canadian operations and advance Target’s digital transformation,” John Mulligan, interim CEO, said in a statement.

Meanwhile, another takeover battle was brewing. Dollar General is weighing a bid for Family Dollar Stores that would challenge Dollar Tree’s US$8.5 billion takeover of the discount retailer, Bloomberg News reported, citing people with knowledge of the matter.

Dollar General is working with an adviser to evaluate its options and knows that banks are willing to finance a counterbid, one of the people said, asking not to be identified discussing private information, according to Bloomberg.

Shares of Dollar General climbed 3.1 percent, shares of Family Dollar Stores gained 2.1 percent, while those of Dollar Tree dropped 2.5 percent.

The latest economic data were better than expected. An Institute for Supply Management report showed its non-manufacturing index climbed to 58.7 in July, up from 56 in June.

The data added weight to those believing the US Federal Reserve will have to start lifting its benchmark interest rate.

"The economy is normal, and a normal economy requires a normal interest rate, not a zero interest rate," Chris Rupkey, chief financial economist at MUFG Union Bank in New York, told Reuters.

In Europe, the Stoxx 600 Index finished the day with a 0.3 percent increase from the previous close. The UK’s FTSE 100 Index gained 0.1 percent, while France’s CAC 40 and Germany’s DAX both rose 0.4 percent.

Here, stronger-than-expected corporate earnings bolstered sentiment, with Deutsche Post and Credit Agricole exceeding expectations.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

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:

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