U.S. Indexes Drop 2%, Whole Foods Market and Exxon Mobil Decline

Nichole Harper
31 Jul, 2014
New York City

U.S. market indexes declined sharply after weekly initial jobless claims rose 23,000 to 302,000 and Exxon Mobil and Whole Foods Market reported weaker than expected quarterly announcements. Target appointed Pepsi executive as new CEO.

[R]1:00 PM New York – U.S. market indexes declined sharply after weekly initial jobless claims rose 23,000 to 302,000 and Exxon Mobil and Whole Foods Market reported weaker than expected quarterly announcements. Target appointed Pepsi executive as new CEO.[/R]

Stocks on Wall Street plunged after Exxon Mobil and Whole Foods reported weaker than expected results.

Weekly initial jobless claims increased 23,000 to 302,000 at the end of last week, the Labor Department reported today.

Tollbooth Index dropped 1.7% or 159.31 to 9,338.57.

S&P 500 index dropped 1.5% or 29.77 to 1,940.33 and the Nasdaq Composite Index plunged 1.8% or 81.81 to 4,380.94.

Whole Foods Market declined 3% after the organic food retailer lowered annual sales growth outlook to between 8.5% and 9.5% compared to estimate of as much as 11% by several analysts.

The retailer also lowered its full-year comparable store sales growth estimate to between 4.1% and 4.4%, from the previously estimated range between 5% and 5.5%.

Whole Foods Market reported fiscal third quarter earnings of 41 cents per share compared to 38 cents a share in the quarter year ago. Revenues increased to $3.38 billion in the quarter, from $3.06 billion a quarter ago.

Same store sales increased 3.9% in the quarter compared to 4.8% in the previous quarter.

U.S. Movers

Cigna Corporation ((CI)) plunged 4.1% or $3.86 to $89.64 after the health service company said total revenues in the second-quarter ending in June jumped 9% to $8.7 billion from a year ago period.

Net income in the quarter advanced 13% to $573 million or $2.12 a diluted share compared to $505 million or $1.76 from a same quarter last year.

MasterCard Inc ((MA)) slipped 1.3% or 99 cents to $74.95 after the payment service provider reported net revenue in the second-quarter ending in June climbed 13% to $2.4 billion from a year ago period.

Net income in the quarter advanced 10% to $931 million or 80 cents a diluted share compared to $848 million or 70 cents from a same quarter last year.

European Markets

In London trading, FTSE 100 index slumped 0.7% or 47.23 to 6,726.21 and in Frankfurt the DAX index declined 1.9% or 180.04 to 9,413.64.

In Paris, CAC 40 index dropped 1.6% or 69.08 to 4,243.22.

BNP Paribas SA slipped 0.8% to €49.45 after the France-based banking company stated revenue in the second-quarter ending in June increased 1.8% to €19.48 billion from €19.13 billion a year ago period.

Net in the quarter swung to a loss from a year earlier to €2.65 billion compared to profit of €3.35 billion and diluted loss per share swung to a €2.22 from earnings of €2.59.

Lloyds Banking Group Plc dropped 2.9% to 74.18 pence after the U.K.-based financial services provider reported net interest income in the second-quarter ending in June climbed 11.3% to £5.80 billion from £5.21 billion a year ago period.

Profit in the period tumbled 55.7% from a year earlier to £699 million compared to £1.58 billion and earnings per share dropped to 0.8 pence from 2.2 pence.

Asian Markets

Market indexes in Tokyo closed lower and the Topix closed down for the first time in five days and Nintendo plunged 7% after the game console maker missed sales target and Kansai Electric Power lowered its first-half revenue outlook.

Topix index in Tokyo closed lower for the first time in five days after several companies missed earnings estimates. Sumitomo Mitsui Financial Group reported smaller than expected decline in earnings. Mitsubishi Heavy Industries said quarterly net soared 65%.

The Nikkei 225 Stock Average fell 25.46 or 0.2% to 15,620.77 and the broader Topix index slid 2.82 to 1,289.42. For the month, Nikkei 225 climbed 1.9%.

The yen closed at 102.86 against one U.S. dollar.

In Mumbai trading, the Sensex Index dropped 192.45 or 0.7% to close at 25,894.97. The CNX Nifty slipped 70.10 to 7,721.30. For the month, Sensex increased 1.4%.