Economy

Disappointing Earnings News May Weigh on US Stocks

Published

9 years ago

11/05/2017

By Investors Hub

There are strong indications that disappointing earnings news may weigh on the US stock markets because the major US index futures are already pointing to a lower opening on Thursday following the lacklustre performance seen over the past few sessions.

Shares of department store operator Macy’s (M) and Snapchat parent Snap (SNAP) are under pressure in pre-market trading after reporting weaker than expected quarterly results.

Concerns about the outlook for interest rates may also generate some negative sentiment following the release of a report from the Labor Department showing a bigger than expected increase in producer prices in the month of April.

After an initial move to the downside, stocks showed a lack of direction over the course of the trading session on Wednesday. The major averages spent much of the day bouncing back and forth across the unchanged line.

The major averages eventually ended the session mixed. While the Dow edged down 32.67 points or 0.2 percent to 20,943.11, the Nasdaq inched up 8.56 points or 0.1 percent to 6,129.14 and the S&P 500 crept up 2.71 points or 0.1 percent to 2,399.63.

The choppy trading on Wall Street came amid political uncertainty on the heels of President Donald Trump’s abrupt dismissal of FBI Director James Comey.

In a letter to Comey, Trump said it is essential to find new leadership that restores public trust and confidence in the FBI’s vital law enforcement mission.

A statement from the White House said Trump acted based on the clear recommendations of both Deputy Attorney General Rod Rosenstein and Attorney General Jeff Sessions.

The move has generated some criticism, however, as it comes as Comey was leading an investigation of potential ties between Russia and Trump’s presidential campaign.

Comey’s firing also raised concerns about Trump’s ability to move forward on policy issues such as tax reform and deregulation.

Traders also seemed somewhat reluctant to make significant moves ahead of the release of key reports on retail sales and producer and consumer prices in the coming days.

On the economic front, the Labor Department released a report showing that import prices rose by more than expected in the month of April, with the increase partly reflecting a rebound in prices for fuel imports.

The Labor Department said import prices climbed by 0.5 percent in April after a revised 0.1 percent uptick in March. Economists had expected import prices to rise by 0.2 percent.

The report also said export prices rose by 0.2 percent in April after inching up by a revised 0.1 percent in March. Export prices had been expected to creep up by 0.1 percent.

Among individual stocks, shares of Yelp (YELP) moved sharply lower after the online review company reported a narrower than expected first quarter loss but provided disappointing revenue guidance.

Magazine publisher Time (TIME) also came under pressure after reporting a wider than expected first quarter loss on revenues that came in below estimates.

Meanwhile, shares of Nvidia (NVDA) showed a strong move to the upside after the graphics chip maker reported first quarter results that exceeded expectations.

Most of the major sectors ended the day showing only modest moves, although considerable strength was visible among energy stocks.

The strength in the energy sector came amid a jump by the price of crude oil after a report showed a steep weekly decline in crude oil inventories.

Reflecting the strength in the energy sector, the NYSE Arca Natural Gas Index surged up by 2.6 percent, the Philadelphia Oil Service Index advanced by 1.6 percent and the NYSE Arca Oil Index climbed by 1.3 percent.

Significant strength was also visible among gold stocks, as reflected by the 2 percent jump by the NYSE Arca Gold Bugs Index.

Semiconductor and steel stocks also saw notable strength on the day, while some weakness was visible among trucking stocks.

Economy

Nigerian Stocks Chalk up 0.33% on Positive Market Breadth Index

Published

1 hour ago

09/06/2026

Dipo Olowookere

By Dipo Olowookere

Renewed buying interest raised the Nigerian Exchange (NGX) Limited by 0.33 per cent on Monday, with gains recorded in almost all the major sectors of the bourse at the close of transactions.

According to data harvested by Business Post, the insurance counter expanded by 0.62 per cent, the banking index grew by 0.59 per cent, the energy sector appreciated by 0.40 per cent, and the consumer goods space improved by 0.10 per cent, while the industrial goods segment closed flat.

When the closing gong was struck by 4 pm to signify the close of business on Customs Street, the All-Share Index (ASI) was up by 1,113.76 points to 243,707.07 points from 242,593.31 points, and the market capitalisation chalked up N714 billion to close at N156.308 trillion compared with the previous session’s N155.594 trillion.

Interest in Nigerian stocks yesterday resulted in a rise in the activity level, with the trading volume soaring by 17.86 per cent to 717.2 million units from 608.5 million units. The trading value advanced by 77.19 per cent to N56.7 billion from N32.0 billion, and the number of deals surged by 36.22 per cent to 73,321 deals from 53,826 deals.

FCMB was the busiest stock during the trading day, with a turnover of 152.3 million units worth N1.8 billion, Premier Paints exchanged 61.0 million units valued at N135.3 million, Dangote Cement traded 34.7 million units for N29.7 billion, The Initiates sold 32.8 million units worth N1.0 billion, and Jaiz Bank transacted 32.6 million units valued at N293.3 million.

Yesterday, the market breadth index was positive after the exchange closed with 37 price gainers and 28 price losers, representing strong investor sentiment.

International Energy Insurance gained 9.92 per cent to settle at N7.98, the Initiates added 9.91 per cent to its share price to quote at N32.15, ABC Transport garnered 9.68 per cent to trade at N6.80, Abbey Mortgage Bank grew by 9.63 per cent to close at N10.25, and Linkage Assurance soared by 9.36 per cent to N1.87.

On the flip side, Fidson Healthcare gave up 10.00 per cent to finish at N122.85, Academy Press crashed by 9.70 per cent to N7.45, RT Briscoe depreciated by 9.43 per cent to N13.45, SUNU Assurances tumbled by 9.37 per cent to N4.06, and Learn Africa decreased by 8.70 per cent to N10.50.

Economy

NASD OTC Exchange Opens Week Lower as Valuation Dips N1.27bn

Published

1 hour ago

09/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange recorded a marginal 0.05 per cent drop on Monday, June 8, depleting the market capitalisation by N1.27 billion to N2.606 trillion from N2.607 trillion, and cutting the Unlisted Security Index (NSI) by 2.12 points to 4,356.20 points from the previous 4,358.32 points.

The contraction witnessed during the session was triggered by a price loser, which overpowered that gains recorded by two securities on the trading platform.

Data indicated that MRS Oil Plc lost N6 at the close of business to settle at N165.00 per share compared with last Friday’s price of N171.00 per share.

Conversely, Lighthouse Financial Services Plc added 9 Kobo to sell at N1.03 per unit versus 94 Kobo per unit, and Central Securities Clearing System (CSCS) Plc appreciated by 8 Kobo to N78.48 per share from N78.40 per share.

The volume of securities traded by investors yesterday soared by 51.9 per cent to 213,188 units from 140,345 units, and the value of securities increased by 12.6 per cent to N20.2 million from N17.9 million, while the number of deals executed fell by 7.4 per cent to 25 deals from 27 deals.

Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 64.8 million units exchanged for N4.4 billion.

GNI Plc also remained as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, trailed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.

Economy

Naira Loses Against Dollar Official, Black Markets

Published

4 hours ago

09/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira opened the new trading week on a negative note on Monday at the Nigerian Autonomous Foreign Exchange Market (NAFEX) and the black market.

At the parallel market, the Nigerian currency weakened against the US Dollar by N5 to sell for N1,380/$1 compared with the preceding session’s rate of N1,375/$1, and at the GTBank FX desk, it shed N1 to trade at N1,373/$1 versus N1,372/$1.

At the official market, it lost 63 Kobo or 0.05 per cent against the Dollar during the session to close at N1,362.84/$1, in contrast to last Friday’s value of N1,362.21/$1.

However, the Nigerian Naira gained N2.30 against the Pound Sterling at the spot market yesterday, quoting at N1,821.29/£1 compared with the previous rate of N1,823.59/£1, and improved against the Euro by 23 Kobo to settle at N1,574.35/€1 versus N1,574.58/€1.

Data from the Central Bank of Nigeria (CBN) showed that interbank forex turnover increased to $92.248 million across 90 deals, from $73.565 million last Friday.

On the policy front, participants believed that the application of the fourth edition of the Foreign Exchange Manual of the central bank, which introduces updated guidelines for foreign exchange transactions and tightening compliance requirements for authorised dealers and market participants, will enhance market flexibility and ease previous restrictions.

Meanwhile, the cryptocurrency market snapped from recent declines, jolted by Strategy’s purchase of 1,550 Bitcoin for approximately $101 million, increasing its total holdings to 845,256 BTC. The company raised $181 million through common stock sales, using the proceeds to fund the bitcoin purchase and increase its cash reserves to $1 billion, pushing the price of the coin higher by 3.2 per cent to $63,731.69.

Cardano (ADA) appreciated by 8.4 per cent to $0.1738, Ethereum (ETH) rose by 5.2 per cent to $1,711.54, Solana (SOL) expanded by 5.1 per cent to $67.82, and Ripple (XRP) improved by 4.9 per cent to $1.18.

Further, Dogecoin (DOGE) jumped by 4.3 per cent to $0.0873, Binance Coin (BNB) soared by 2.7 per cent to $609.50, and TRON (TRX) increased by 0.7 per cent to $0.3274, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $0.9997 and $0.9998, respectively.