US Stocks Open Lower as Traders React to Earnings News

Image

By Investors Hub

The major U.S. index futures are pointing to a lower opening on Thursday, with stocks likely to move back to the downside following the strength seen in the previous session.

The downward momentum for the markets comes as traders react to the latest batch of earnings news from several big-name companies.

Shares of J.C. Penney (JCP) are moving sharply lower in pre-market trading after the department store chain reported a narrower than expected first quarter adjusted loss but cut its full-year earnings guidance.

Network equipment maker Cisco Systems (CSCO) may also come under pressure after reporting better than expected fiscal third quarter earnings but providing a disappointing forecast.

On the other hand, shares of Wal-Mart (WMT) are likely to move to the upside after the retail giant reported first quarter results that exceeded analyst estimates on both the top and bottom lines.

Stocks fluctuated over the course of the trading session on Wednesday but largely maintained a positive bias before closing mostly higher. The upward move on the day came on the heels of the sharp pullback seen in the previous session.

The major averages closed in positive territory but well off their highs of the session. The Dow rose 62.52 points or 0.3 percent to 24,768.93, the Nasdaq advanced 46.67 points or 0.6 percent to 7,398.30 and the S&P 500 climbed 11.01 points or 0.4 percent to 2,722.46.

The strength on Wall Street partly reflected a positive reaction to earnings news from Macy’s (M), with the department store operator surging up by 10.8 percent.

Macy’s jumped to its best closing level in over a year after reporting better than expected first quarter results and providing upbeat guidance.

Buying interest was somewhat subdued, however, with geopolitical uncertainty keeping some traders on the sidelines after North Korea threatened to cancel an historic meeting between leader Kim Jong Un and President Donald Trump.

In a statement published by the state-run Korean Central News Agency, North Korean First Vice Minister of Foreign Affairs Kim Kye Gwan suggested that Trump must accept the reclusive communist country as a nuclear power.

“If the U.S. is trying to drive us into a corner to force our unilateral nuclear abandonment, we will no longer be interested in such dialogue and cannot but reconsider our proceeding to the DPRK-U.S. summit,” Kim said.

Kim pointed to “unbridled remarks” by U.S. officials such as National Security Adviser John Bolton calling on North Korea to abandon nuclear weapons first and be compensated afterward.

The statement from Kim came after North Korea canceled high-level talks with South Korea planned for Wednesday over U.S.-South Korean military drills.

Despite the threats, White House Press Secretary Sarah Sanders said the administrations remains hopeful the meeting will take place.

On the U.S. economic front, the Commerce Department released a report showing a sharp pullback in new residential construction in the month of April.

The report said housing starts plunged by 3.7 percent to an annual rate of 1.287 million in April after jumping by 3.6 percent to an upwardly revised 1.336 million in March.

Economists had expected housing starts to drop to an annual rate of 1.310 million from the 1.319 million originally reported for the previous month.

The Commerce Department said building permits also tumbled by 1.8 percent to an annual rate of 1.352 million in April after surging up by 4.1 percent to an upwardly revised 1.377 million in March.

Building permits, an indicator of future housing demand, had been expected to edge down to 1.350 million from the 1.354 million originally reported for the previous month.

A separate report from the Federal Reserve showed industrial production increased by slightly more than anticipated in the month of April.

The Fed said industrial production climbed by 0.7 percent in April, matching the upwardly revised increase in March. Economists had expected industrial production to rise by 0.6 percent.

Steel stocks turned in some of the market’s best performances, resulting in a 2.1 percent jump by the NYSE Arca Steel Index. With the gain, the index reached its best closing level in well over two months.

Considerable strength also emerged among computer hardware stocks, as reflected by the 1.5 percent gain posted by the NYSE Arca Computer Hardware Index. The advance lifted the index to a record closing high.

Hard drive and memory chip maker Western Digital (WDC) lead the hardware sector higher, surging up by 4.9 percent on the day.

Semiconductor stocks also showed a significant move to the upside, driving the Philadelphia Semiconductor Index up by 1.4 percent.

Micron Technology (MU) posted a standout gain after RBC Capital initiated coverage of the chipmaker’s stock with an Outperform rating.

Tobacco, oil service, and natural gas stocks also saw notable strength on the day, while weakness was visible among utilities stocks.

Share
Related Stories
Image
01-March-2024

Local Stock Market Rebounds, Closes Last Day of February 0.68% Higher

By Dipo Olowookere The last trading session of February 2024 at the Nigerian Exchange (NGX) Limited ended on a positive note as it rebounded by 0.68 per cent after the interest rate hike scare. The growth posted on Thursday was triggered by bargain-hunting in financial stocks, especially those selling at cheaper prices after the sell-offs in the past few sessions. However, profit-taking persisted in the other sectors of the bourse, with the energy, and consumer goods indices closing lower by 0.33 per cent, and 0.18 per cent, respectively. Business Post reports that the banking space rose by 6.14 per cent,

Image
03-March-2024

Dangote Cement’s African Subsidiaries Contribute 41.2% to FY 2023 Sales

By Dipo Olowookere Dangote Cement Plc has revealed that sales from its factories outside Nigeria, its base, improved in the 2023 fiscal year by 12.7 per cent, contributing about 41.2 per cent to its total volume for the period under review, with its Nigerian operations accounting for the rest. In its audited financial statements for the year ended December 31, 2023, filed to the Nigerian Exchange (NGX) Limited, the cement maker said revenue generated from its pan-African operations increased by a record 123.2 percent to N925.9 billion, while EBITDA surged by over four-fold to N263.7 billion. Business Post reports that

Image
02-March-2024

Naira Now N1,548.25 at Official Market, N1,560/$1 at Black Market

By Adedapo Adesanya The Naira sustained its gradual recovery against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, March 1, appreciating by 2.94 per cent or N46.86 to sell at N1,548.25/$1, in contrast to the N1,595.11/$1 it was traded on Thursday. Also, in the spot market, the Nigerian currency improved its value against the Pound Sterling during the trading day by N90.13 to close at N1,956.06/£1 versus the previous day’s N2,046.19/£1 and against the Euro, it gained N76.39 to trade at N1,675.25/€1, in contrast to the N1,751.64/€1 it closed a day earlier. The supply of

More Stories
Image
26-September-2022

Pharmaceutical Company Introduces Affordable Blood Tonic for Nigerians

By Aduragbemi Omiyale The harsh economy in Nigeria caused by high prices of items amid low purchasing power has made it difficult for Nigerians to afford the basic needs of life, especially drugs to replenish their body system. As a result, the rate of suicide triggered by depression and others has increased. Also, the number of people falling sick in the country has skyrocketed. But things may soon change for the better as a pharmaceutical firm, Sterling Biopharma Limited, has introduced a new product called Fejeron Blood Tonic into the Nigerian market to support the country’s about 66.8 per cent

Image
21-December-2022

US Winter Weather Drives Oil Prices Higher

By Adedapo Adesanya Oil prices ended higher on Tuesday as weather fears in the United States sparked concerns that millions might curb travel plans during the holiday season. As a result, Brent crude futures grew by 19 cents or 0.2 per cent to $79.99 per barrel, and the US West Texas Intermediate (WTI) crude futures expanded by 90 cents to close at $76.09 per barrel. According to the US National Weather Service, the Midwest and Great Lakes region could see a major blizzard beginning Thursday, while cold air moving east could bring a flash freeze causing a rapid temperature drop

Image
19-January-2020

T-Bills Investors to Demand Higher Rate Amid Rising Inflation

By Dipo Olowookere **As N106bn Bond Coupon Payments Impact System Liquidity The frequency at which stop rates of treasury bills are declining in recent times in Nigeria is giving some investors in that space something to worry about. At the last exercise held on Wednesday, January 15, 2020, the Central Bank of Nigeria (CBN) offered the debt instrument for as low as 2.95 percent. Two days later, the National Bureau of Statistics (NBS) released a report that showed that inflation rate for December 2019 increased to 11.98 percent from 11.85 percent in November 2019. From this, an investment in T-bills

Image
22-February-2021

LASACO Stocks Hit N1.68 from 42 Kobo After Share Reconstruction

By Dipo Olowookere The share capital reconstruction embarked upon by LASACO Assurance Plc has been completed and the suspension placed on the company lifted. The Nigerian Stock Exchange (NSE) had on February 1, 2021, suspended trading in the shares of the organisation on its platform. This was to allow the process of the share reconstruction to run smoothly. Share capital reconstruction is the process of reducing the listed shares of a company for better value. The process involves merging shares together at a given ratio. In the case of LASACO Assurance, it merged four equities into one and this reduced

Image
21-September-2016

FG Trains 41,161 Graduates In Business

No fewer than 41,161 graduates have been trained by the Federal Government in the area of business. This was disclosed in a statement on Tuesday by spokesperson of Graduate Internship Scheme in Ondo State, Tewogbade Latona. It was further revealed in the statement that the Project Director of the scheme, Mr Dennis Chukwu, said the beneficiaries were tutored in career development and entrepreneurial skills. Mr Chukwu noted that the objective of the training was to enable graduate interns utilise the period of the training to develop useful skills and positive work ethics. It was also aimed at exposing participants to

Image
07-September-2022

NMDPRA Disburses N103.0bn for Bridging Claims in Nine Months

By Adedapo Adesanya The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has disclosed that it disbursed N103.0 billion as bridging claims to oil marketers in nine months; between December 2021 and August 2022. Bridging claims is one of the cost elements factored into the petroleum products pricing template to ensure uniformity of prices across the country. It usually caters for the cost of transporting the products from one location to another. In a statement in Abuja, the NMDPRA disclosed that it will continue to carry out its mandate as stipulated in the Petroleum Industry Act (PIA), which includes promoting

Image
22-March-2017

SimplePay Partners LCC on Toll Payment

By Modupe Gbadeyanka A Nigerian payments solutions company, SimplePay, has announced a partnership with the Lekki Concession Company Limited (LCC), to provide an innovative solution for LCC e-Tag customers to top-up their account through PayReminder. The PayReminder will alert e-Tag users/customers to make payment into their toll account when their balance is low, through an SMS on their registered GSM line. The SMS comes with a payment link, which when clicked, allows the user to conveniently top-up their account by following the instructions to complete the payment. The customer’s account will be credited instantly. The service is a safe and

Image
16-July-2019

Nigeria, Faith, UNFPA, UNDP & NPC: Should the Poor Have Children?

By Nneka Okumazie Everyone, or almost all, loves to say what the poor can or cannot do. The problems of the world are sometimes blamed on the poor having children. When poor families are in need, the excuse against compassion – and guilt – is to say: why would they have children they can’t afford? The poor are already short of resources, controlled by powerful people, who always want more power. Children come into an imperfect world. Most parents are sometimes ready to go to any length or to the disadvantage of anyone else, to benefit their kids. Children grow

Ad
Ad
Recent Stories
Image
03-March-2024

Dangote Cement’s African Subsidiaries Contribute 41.2% to FY 2023 Sales

By Dipo Olowookere Dangote Cement Plc has revealed that sales from its factories outside Nigeria, its base, improved in the 2023 fiscal year by 12.7 per cent, contributing about 41.2 per cent to its total volume for the period under review, with its Nigerian operations accounting for the rest. In its audited financial statements for the year ended December 31, 2023, filed to the Nigerian Exchange (NGX) Limited, the cement maker said revenue generated from its pan-African operations increased by a record 123.2 percent to N925.9 billion, while EBITDA surged by over four-fold to N263.7 billion. Business Post reports that

Image
03-March-2024

Nigeria Pays N1trn Monthly Subsidy to Keep Petrol at N650/Litre

By Aduragbemi Omiyale Despite the federal government claiming it has stopped the payment of subsidies on premium motor spirit (PMS), well-known as petrol, more people are countering this. Recall that a few weeks ago, the International Monetary Fund (IMF) said the government had returned fuel subsidies through the backdoor and kept Nigerians in the dark about this. It then advised the government of President Bola Tinubu, which announced an end to it on May 29, 2023, to completely stop the payment as it was increasing his administration’s fiscal deficit. The global lender, in a report released last month, said the

Image
02-March-2024

JUST IN: Nollywood Star Mr Ibu Dies

By Modupe Gbadeyanka Information just reaching Business Post indicates that popular Nigerian actor, Mr John Okafor, otherwise known as Mr Ibu, is dead. It was gathered that the Nollywood star breathed his last on Saturday in a hospital in Lagos. His demise comes a day after the Nigeria film industry lost an actor, Mr Tolani Quadri Oyebamiji, well-known as Sisi Quadri. Mr Ibu underwent a surgery, which led to the amputation of one of his legs. He was later discharged from the hospital, but was reportedly taken back. Until his death, he acted in several movies. He was well known

Image
02-March-2024

African Bishops Seek Overhaul of Financial System as Debt Burden Worsens

African Catholic Bishops called for an overhaul of the financial system to address health, climate, food and other challenges the region faces. Ahead of a gathering of African Finance Ministers in Victoria Falls, Zimbabwe, the Justice, Peace and Development Commission of the Catholic Symposium of Episcopal Conferences of Africa and Madagascar (SECAM) outlined reforms for debt relief, development resources and governance. “In Sub-Saharan Africa the number of people facing food insecurity stress or crisis has more than doubled since 2019, reaching 420 million people last year,” noted the bishops in a statement. A delegation representing the African Bishops and religious

Image
02-March-2024

MTF Class of 2023 to Premiere Her Dark Past, Grown

By Modupe Gbadeyanka Two feature films will be premiered this weekend exclusively on the Africa Magic Showcase channel 151 and Africa Magic Urban channel 153 by the students of the MultiChoice Talent Factory (MTF). The two pieces of art titled Grown and Her Dark Past are the final projects of the MTF Class of 2023 students, a statement from the organisation said. The MTF is a leading film school in West Africa for young, talented and passionate filmmakers. It was established by the media platform to grow the region’s creative industry. Grown premieres on Africa Magic Showcase at 8.30 pm

Image
02-March-2024

Mandela’s Heirs Lose Power in South Africa

By Alexander Braterskiy South African authorities warn that if the opposition wins the parliamentary elections, the country may change course and leave the informal BRICS economic bloc, which includes Russia. The position of the African National Congress party, which has been in power since the collapse of apartheid, is indeed not the best, as shown by the municipal elections held earlier in the country. The opposition accuses the president of corruption and abuse of power, as well as an inability to cope with the country’s energy crisis. The ANC crisis occurred on the 30th anniversary of the first free elections

Image
02-March-2024

CAA Reaffirms Commitment to Climate Innovation for Sustainable Future

By Modupe Gbadeyanka A leading social enterprise focused on environmental sustainability, Climate Action Africa (CAA), has reaffirmed its commitment to being at the forefront of driving climate innovation for a sustainable future. The organization, which is a key participant at the four-day Omniverse Summit 2024 in Lagos, emphasised the need to integrate environmental sustainability models, technology, and community-driven innovation to address climate change challenges. It promised to foster an inclusive climate action ecosystem through innovation, which it said can be used to identify and scale solutions to address the imminent climate crisis in Nigeria and Africa as a whole, The

Image
02-March-2024

Endosurvivors Foundation Set For Another Endometriosis Awareness

By Adedapo Adesanya EndoSurvivors International Foundation (ESIF), an NGO championing endometriosis awareness in Nigeria, has announced its upcoming events in commemoration of the Global Endometriosis Advocacy Month in March, fondly tagged March4Endo by advocates all over the world.  Endometriosis is a chronic and inflammatory condition that affects approximately 1 in 10 girls and women in Nigeria and on a global scale. This sums up to about 190 million affected girls/women around the world, about the population of Nigeria in 2018.  The World Health Organisation (WHO) recognizes that endometriosis has significant social, public health, and economic implications leading to a decrease

Image
02-March-2024

CSCS, FrieslandCampina Lift NASD OTC Bourse by 0.31%

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange returned to the positive territory after it gained 0.31 per cent on Friday, March 1, thanks to the duo of Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc. CSCS Plc added 81 Kobo to its value to sell for N19.46 per unit compared with the preceding day’s N18.65 per unit, and FrieslandCampina improved by N1.15 to settle at N71.4o per share, in contrast to Thursday’s closing price of N70.25 per share. However, Aradel Holdings Plc continued its price depreciation yesterday as it shed N6.75 to sell at N2,395.00

Image
02-March-2024

Naira Now N1,548.25 at Official Market, N1,560/$1 at Black Market

By Adedapo Adesanya The Naira sustained its gradual recovery against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, March 1, appreciating by 2.94 per cent or N46.86 to sell at N1,548.25/$1, in contrast to the N1,595.11/$1 it was traded on Thursday. Also, in the spot market, the Nigerian currency improved its value against the Pound Sterling during the trading day by N90.13 to close at N1,956.06/£1 versus the previous day’s N2,046.19/£1 and against the Euro, it gained N76.39 to trade at N1,675.25/€1, in contrast to the N1,751.64/€1 it closed a day earlier. The supply of