Scoop has an Ethical Paywall
License needed for work use Register

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


While you were sleeping: Retailers provide lift

While you were sleeping: Retailers provide lift

Aug 21 (BusinessDesk) – Wall Street gained, propelled by better-than-expected earnings from US retailers including Best Buy.

Shares of Best Buy jumped, last up 11 percent, after cost- and price cuts boosted the consumer electronics retailer's quarterly profit more than expected. More good earnings news from the retail industry came from TJX, JC Penney and Urban Outfitters, lifting their shares by 6.6 percent, 5.5 percent and 9.6 percent respectively.

Bucking the trend however were shares of Barnes & Noble, last down 11.5 percent, after the company posted a larger-than-expected quarterly loss, while the founder suspended his efforts to make an offer for the company's retail business.

Separately, sales at US retail stores open at least a year rose 3.4 percent compared to a year earlier, according to the latest data released by Johnson Redbook Research.

In late afternoon trading in New York, the Dow Jones Industrial Average rose 0.24 percent, while the Standard & Poor's 500 Index gained 0.69 percent, and the Nasdaq Composite Index advanced 0.85 percent.

"We are seeing a lot of market swings because of the concerns on Fed tapering," Randy Frederick, managing director of active trading and derivatives at the Schwab center for financial research in Austin, Texas, told Reuters.

In Europe, the Stoxx 600 Index finished the session with a 0.8 percent slide. The UK's FTSE 100 Index fell 0.2 percent, Germany’s DAX declined 0.8 percent, while France’s CAC 40 shed 1.4 percent.

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.

Shares of BHP Billiton fell, closing down 1.7 percent, after the company posted full-year earning that failed to live up to analysts' expectations.

Glencore said it was taking a US$7.7 billion writedown, eliminating the goodwill it earlier assigned to mines owned by Xstrata.

The euro, however, strengthened, last up 0.6 percent against the greenback as investors position ahead of tomorrow's Fed news.

Ian Stannard, strategist at Morgan Stanley in London, said the strength in the euro won’t last as attention turns to the US. Gains in the euro will likely be limited to US$1.3460, he told Bloomberg News.

Minutes of the latest Fed meeting, scheduled to be released on Wednesday, will be scrutinised for any clues on the timing of a potential cutback in the central bank's bond buying.

“The balance of probabilities is swinging towards a tapering announcement in September rather than December but the timing still remains inconclusive in our view,” James Butterfill, head of global equity strategy at Coutts & Co in London, told Bloomberg.

The yield on the US 10-year Treasury note was trading at 2.83 percent in afternoon trading in New York, down from 2.89 percent a day earlier.


© Scoop Media

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

FMA: MAS To Pay $2.1M Penalty For Making False Representations

Following proceedings brought by the FMA, MAS has been ordered to pay a $2.1M penalty for making false and/or misleading representations to some customers. MAS admitted failing to correctly apply multi-policy discounts and no claims bonus discounts to some customers, failing to correctly apply inflation adjustments on some customer policies, and miscalculating benefit payments. More

IAG: Call On New Government To Prioritise Flood Resilience

The economic toll of our summer of storms continues to mount, with insurance payouts now topping $1B, second only to the Christchurch earthquakes. AMI, State, & NZI have released the latest Wild Weather Tracker, which reveals 51,000 claims for the North Island floods & Cyclone Gabrielle, of which 99% (motor), 97% (contents), and 93% (home) of claims have now been settled. More


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.