Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

While you were sleeping: Travelers, Mattel disappoint

While you were sleeping: Travelers, Mattel disappoint

April 22 (BusinessDesk) - Wall Street fell, dragged lower by disappointing earnings from companies including Travelers Cos.

Late-march hail storms in Texas dented Travelers’ earnings.

“Our results from time to time will be impacted by higher levels of catastrophe losses, as they were this quarter," Alan Schnitzer, chief executive officer of Travelers, said in a statement.

Wall Street moved lower. In 2.16pm New York trading, the Dow Jones Industrial Average fell 0.5 percent, while the Nasdaq Composite Index inched 0.04 percent lower. In 2.00pm trading, the Standard & Poor’s 500 Index slid 0.5 percent.

The Dow declined as slides in shares of Travelers Cos and those of Verizon Communications, recently down 6.1 percent and 4.2 percent respectively, outweighed gains in shares of IBM and those of American Express, up 2.5 percent and 1.3 percent respectively.

Mattel shares dropped, down 6.8 percent as of 2.37pm in New York, after the toy maker posted a larger-than-expect quarterly loss.

However, Under Armour shares jumped, up 7 percent in afternoon trading in New York, after the maker of athletic apparel reported better-than-expected quarterly earnings and upgraded its full-year forecast.

As much as 77 percent of the S&P companies that have reported so far in the first quarter have beaten profit estimates, compared with the 63 percent that surpass expectations in a typical quarter, according to Reuters.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

The latest data on the US jobs market offered more confirmation of its strength, as weekly jobless claims posted a surprise drop to the lowest level since 1973.

Initial claims for unemployment benefits fell by 6,000 to 247,000 in the week ended April 16, data from the Labor Department showed.

"The labour market continues to improve," Jim O'Sullivan, chief US economist at High Frequency Economics in Valhalla, New York, told Reuters. “If the apparent slowing in GDP in the first quarter was truly a sudden change in trend, we should have seen something happen in claims by now.”

In Europe, the Stoxx 600 Index ended the session with a 0.3 percent decline from the previous close.

While equities moved lower, the euro strengthened after the European Central Bank's Governing Council kept its interest rates on hold at a policy meeting after cutting them to record lows in March.

“Following our comprehensive package of decisions taken in early March, broad financing conditions in the euro area have improved,” ECB President Mario Draghi said at a press conference in Frankfurt. “The pass-through of the monetary policy stimulus to firms and households, notably through the banking system, is strengthening.”

“However, global uncertainties persist,” Draghi noted. “The risks to the euro area growth outlook still remain tilted to the downside.”

France’s CAC 40 Index fell 0.2 percent, while the UK’s FTSE 100 Index declined 0.5 percent, Germany’s DAX Index rose 0.1 percent.

“The market hasn’t yet accepted the frequently repeated word ‘patience,’” Guillermo Hernandez Sampere, head of trading at MPPM EK in Eppstein, Germany, told Bloomberg. “The fact that previous measures haven’t had the desired effect left little room for surprises. Only better GDP numbers would be able to support the measures.”

Oil prices eased.

“The market is catching its breath after a strong rally,” Gene McGillian, a senior analyst and broker at Tradition Energy in Stamford, Connecticut, told Bloomberg. “Production dropped to an 18-month low last week, which is pretty significant, but it comes while we have a huge oil oversupply in storage.”

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.