Home' Trinidad and Tobago Guardian : January 25th 2015 Contents JANUARY 25 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG9
The stock market moved
lower Friday, snapping
four days of gains, as US
companies turned in
mixed results for the
Shares of tissue and diaper maker Kim-
berly-Clark dropped after the company s
earnings fell short of expectations. UPS
slid after it cut its earnings outlook.
KEEPING SCORE: The Standard &
Poor s 500 index slipped seven points, or
0.4 per cent, to 2,055 as of 3:20 pm East-
ern time. The Dow Jones industrial average
fell 92 points, or 0.6 per cent, to 17,721.
The Nasdaq composite bucked the trend.
It rose seven points, or 0.2 per cent, to
EARNINGS RUSH: Corporations are
reporting fourth-quarter results. While
oil earnings are expected to weigh on
results, companies in the S&P 500 index
are still expected to increase profits by 4.1
per cent, according to data from S&P Cap-
ital IQ. That s slower than the 4.9 per
cent increase in the same period a year
TOUGH YEAR AHEAD: Kimberly-
Clark, which makes Huggies diapers and
Kleenex tissue, reported a fourth-quarter
loss of US$83 million. The company also
forecast lower sales in 2015. The stock
dropped US$7.29, or 6.1 per cent, to
DELIVERING BAD NEWS: UPS said
it was hurt by the huge cost of guaran-
teeing punctual deliveries over the holi-
days. That forced the shipping company
to cut its outlook for the year. UPS hired
more workers and boosted capacity at its
facilities during the busy holiday season
to avoid a repeat of 2013, when shippers
struggled with a deluge of orders. The
stock slumped US$10.90, or 9.5 per cent,
EUROPE FACTOR: On Thursday,
global stocks rose sharply after the Euro-
pean Central Bank announced that it
would buy 60 billion euros (US$68 billion)
of government and corporate bonds each
month at least through September 2016.
The 1.1 trillion euro programme signals
the willingness of the ECB to boost the
economies in the 19-nation euro currency
EUROPEAN TRADING: France s CAC
40 jumped 1.93 per cent and Germany s
DAX rose 2.1 per cent. Britain s FTSE 100
added 0.5 per cent.
STARBUCKS EARNINGS: Starbucks
quarterly earnings soared 82 per cent as
the coffee chain attracted more customers
over the holidays, thanks to its expanded
food and drink menu. The company s
stock jumped US$5.38, or 6.5 per cent, to
HOT BOX: Shares of Box, a data stor-
age company, surged 68 per cent as the
company debuted in the market. Box
gained US$9.56 to US$23.56.
BOND TRADING: In government
bond trading, prices rose. The yield on
the 10-year government bond fell to 1.83
per cent from 1.86 on Thursday.
CURRENCIES: The dollar continued
to strengthen against most major curren-
cies. Against the euro, the dollar traded
at US$1.1265 from US$1.356. The euro is
trading at its lowest against the dollar in
more than a decade.
The US currency slipped slightly against
the Japanese yen, dropping to 117.81 yen
from 118.56 yen the previous day.
European stocks hit seven-year highs on Friday,
continuing a rally ignited by the European Central
Bank s plan for massive regional economic stimuli
that also knocked the euro to 11-year lows.
Wall Street mostly fell on soft corporate earnings
news after the S&P 500 rallied 1.5 per cent on Thurs-
day on the ECB s US$1 trillion bond-buying announce-
The euro went into another nose-dive, hitting a
low of US$1.1115 in its biggest daily fall in over three
years, before recovering somewhat. The euro was
last off 1.3 per cent at US$1.1218.
The currency has lost more than 7 per cent since
the start of the year and is on track for its biggest
monthly fall since the depths of the financial crisis
in early 2009.
"We are in an avalanche of euro selling," said Boris
Schlossberg, managing director of currency strategy
at BK Asset Management in New York.
US Treasury debt prices jumped as European yields
touched record lows and left America s higher interest
rates even more attractive to investors.
Oil prices were buoyed by hopes for a boost to
global growth from the ECB s move, though the death
of Saudi Arabia s King Abdullah added to uncertainty
over the plans of the world s biggest crude exporter.
The FTSEurofirst 300 index of top European shares
closed up 1.8 per cent at 1,479.51 points, a seven-
year high. The index rose 5.1 per cent this week, its
strongest week since December 2011.
US stocks were mostly down for much of Friday,
partly on worries the surging dollar will hurt US cor-
porate earnings. The Dow Jones industrial average
finished unofficially off 141.38 points, or 0.79 per
cent, to 17,672.6, the S&P 500 closed down 11.33
points, or 0.55 per cent, to 2,051.82, and the Nasdaq
Composite added 7.48 points, or 0.16 per cent, to
For the week, the Dow rose 0.9 per cent, the S&P
gained 1.6 per cent and the Nasdaq added 2.7 per
United Parcel Service Inc shares fell nearly 10 per
cent after the delivery giant gave a fourth-quarter
earnings outlook below expectations.
"Valuations in the US market are only okay, and
you have to make sure you re factoring in the impact
from currencies, which will really be a headwind for
multinationals," said David Lafferty, chief market
strategist of Natixis Global Asset Management in
Boston. Long-dated bonds led a US debt rally and
the yield curve flattened. Benchmark 10-year notes
gained 29/32 in price to yield 1.79 per cent, far higher
than comparable German debt yields, which fell to
record lows of 0.312 per cent on Friday.
Thirty-year bonds gained 2-8/32 in price to yield
2.37 per cent, down from 2.47 per cent late on Thurs-
"The US market can t go down. There are too
many flows into US Treasuries because we re the
highest-yielding currency there is," said Tom di Galo-
ma, head of rates and credit trading at ED&F Man
Capital Markets in New York.
Brent crude oil rose. The death of Saudi Arabia s
king added to uncertainty in oil markets, although
the new ruler indicated immediately there would be
no policy change. Brent rose nearly 1.0 per cent to
US stocks slide
slump on earnings
ECB easing pushes
to seven-year high
Trader Jason Harper, centre, works on the floor of the New York Stock Exchange. US
stocks opened slightly lower in early trading after a four-day winning streak. AP
A man stands in front of an electronic stock board of a securities firm in Tokyo, Friday,
January 16, 2015. Asian stocks were sharply lower Friday after a surprise move by the
Swiss National Bank to abandon its efforts to keep its currency artificially cheap shocked
the market. Japan's Nikkei 225 dropped 1.43 per cent to 16,864.16. AP
Links Archive January 24th 2015 January 26th 2015 Navigation Previous Page Next Page