Stocks Slide on Wall Street, Gannett to Spin Off Publishing

Nichole Harper
05 Aug, 2014
New York City

Stocks on Wall Street drifted lower after mixed earnings report. A private measure of service sector in the U.S. showed larger than expected expansions and a government measure on factory orders increased 1.1% in June. Gannett is planning to spin off USA Today and print business.

[R]1:55 PM New York – Stocks on Wall Street drifted lower after mixed earnings report. A private measure of service sector in the U.S. showed larger than expected expansions and a government measure on factory orders increased 1.1% in June. Gannett is planning to spin off USA Today and print business.[/R]

Stocks on Wall Street traded lower and failed to bid on the yesterday’s advance and a private measure of service sector showed growth in July and the government report showed factory orders increased in June.

Factory orders increased in June 1.1%, the most in three months, the Commerce Department reported today.

Service sector index in the UK expanded more than initially estimated but the index in the euro zone grew less than estimated and the index in China fell to the lowest since 2005.

Non-manufacturing index published by the Institute of Supply Management increased to 58.7 from 56 in June.

Tollbooth Index dropped 0.9% or 87.35 to 9,264.95.

Among other popular indexes, S&P 500 index declined 10.33 or 0.5% to 1,928.55 and the Nasdaq Composite index dropped 0.5% or 19.93 to 4,364.06.

U.S. Movers

CVS Caremark Corporation ((CVS)) gained 21 cents to $77.56 after the health care company stated net revenues in the second-quarter ending in June climbed 10.7% to $34.6 billion from a year ago period.

Net income in the quarter jumped 12% to $1.25 billion or $1.06 a diluted share compared to $1.12 billion or 91 cents from a same quarter last year.

Coach, Inc. ((COH)) soared 4.1% or $1.42 to $35.73 after the women’s accessories maker said net revenues in the fourth-quarter ending on June 28 advanced 7% to $1.14 billion from a year ago period.

Net income in the quarter plunged 66% to $75 million or 27 cents a diluted share compared to $221 million or 78 cents from a same quarter last year.

Gannett Co., Inc rose 1 cent to $34.33 after the media and marketing company plans to split its broadcasting and digital businesses from its publishing business.

Gannett has also signed a definitive agreement to acquire full ownership of Cars.com, the automotive website for $1.8 billion in cash.

European Markets

European market struggled as investors focused on the brewing banking crisis in Portugal and new worries surfaced about the health of the banking sector in the euro zone.

In addition, UK service sector expanded faster than expected in July and salaries in the sector also increased.

In London trading, FTSE 100 index slid 0.06% or 4.02 to 6,673.50 and in Frankfurt the DAX index gained 0.2% or 23.16 to 9,177.30.

In Paris, CAC 40 index rose 0.2% or 7.32 to 4,224.54.

Credit Agricole net tumbled 24% to €885 million and Deutsche Post profit climbed 9% to €461 million.

Vivendi received binding offer from Telefonica SA to acquire its Brazilian subsidiary GVT for €6.7 billion.

Asian Markets

Market indexes in Japan and across Asia dropped for the fourth day in a row as the yen gained and exporters and trading companies led the most actively traded stocks.

The Nikkei 225 Stock Average dropped 154.19 or 1% to 15,320.31 and the broader Topix index slipped 12.66 to 1,263.53.

The yen closed at 102.58 against one U.S. dollar.

Market indexes in Japan declined for the fourth day in a row as investors reacted to domestic earnings and higher yen. Toyota Motor reported 2.2% increase in first-quarter revenues. Isuzu Motors said profits were ahead of expectations. Marubeni Corp sales in first-half increased 18%.