U.S. Stocks Extend Losses, Weak Auto Sales Growth in February

Nichole Harper
04 Mar, 2015
New York City

Market indexes declined for the second day in a row and February auto sales increased less than expected. GM, Chrysler and Nissan reported rising sales but Ford sales declined.

[R]12:555 PM New York – Market indexes declined for the second day in a row and February auto sales increased less than expected. GM, Chrysler and Nissan reported rising sales but Ford sales declined.[/R]

Market indexes in New York traded lower and auto sales in February rebounded less than anticipated.

U.S. auto sales rose 5% in the month to 1.26 million and General Motors, Fiat Chrysler, Nissan and Honda registered muted sales gain.

GM sales increased 4% from a year ago month, Nissan sales in North America surged 3%.

For the second year in the row, inclement weather dampened customer visits to dealers and Ford sales declined 2% in the month. Volkswagen sales declined 5%.

On Wall Street trading, Tollbooth Strategy Index fell 0.4% or 40.41 to 10,690.22.

S&P 500 index slipped 9.89 or 0.5% to 2,097.72 and the Nasdaq Composite Index fell 14.18 or 0.3% to 4,965.85.

Crude oil rose 51 cents a barrel to $50.16 and gold fell $3.50 to $1,200.90 an ounce.

U.S. Movers

Abercrombie & Fitch Co ((ANF)) tumbled 15.1% or $3.59 to $20.40 after the specialty retailer said net sales in the fourth-quarter ending in January declined 13.8% to $1.12 billion form a year ago period. Comparable store sales in the quarter plummeted 13%.

Net income in the quarter plunged 32.8% to $44.4 million or 63 cents per diluted share compared to $66.1 million or 85 cents from the same quarter last year.

American Eagle Outfitters ((AEO)) climbed 8.6% or $1.27 to $16.09 after the teen age apparel retailer reported total revenues in the fourth-quarter ending in January jumped 2.9% to $1.07 billion form a year ago period. Comparable store sales in the quarter were flat.

Net income in the quarter surged 486.7% to $61.6 million or 32 cents per diluted share compared to $10.5 million or 5 cents from the same quarter last year.

Wayfair Inc ((W)) surged 15.8% or $3.95 to $29.20 after the online furniture retailer reported net revenues in the fourth-quarter ending in December soared 384% to $408.6 million from a year ago period.

Net loss in the quarter widened to $58.1 million or 73 cents per diluted share compared to $8.9 million or 22 cents from the same quarter last year.

European Markets

In London trading, FTSE 100 index fell 0.2% or 14.99 to 6,874.14 and in Frankfurt the DAX index decreased 0.2% or 22.13 to 11,258.23.

In Paris, CAC 40 index rose 0.2% or 7.78 to 4,877.03.

Henkel AG & Co KGaA slumped 3.5% to €92.29 after the Germany-based home care and consumer goods maker reported sales in the year ending in December edged up 0.4% to €16.43 billion from €16.36 billion a year ago period.

Net profit in the year jumped 2.5% from a year ago to €1.63 billion compared to €1.59 billion and diluted earnings per share rose to €3.74 from €3.65.

The company forecasted adjusted EBIT for fiscal 2015 to climb 16% and earnings per share to soar 10%.

ITV Plc jumped 4.9% to 232.70 pence after the U.K.-based broadcasting company stated total revenues in the year ending in December advanced 8.4% to £2.59 billion from £2.39 billion a year ago period.

Net profit in the year soared 43.3% from a year ago to £473 million compared to £330 million and diluted earnings per share jumped to 11.5 pence from 8.1 pence.

Legal & General Group Plc dropped 3.4% to 268.70 pence after the U.K.-based insurer reported revenues in the year ending in December soared 31.2% to £51.52 billion from £39.26 billion a year ago period.

Net profit in the year climbed 9.5% from a year ago to £992 million compared to £906 million and diluted earnings per share increased to 16.54 pence from 15 pence.

The insurer said net premiums earned climbed 71.7% to £9.05 billion and insurance premiums jumped 8% to £3 billion.

At the end of year, total assets surged 15.8% to £708.5 billion from £611.6 billion a year ago period.

Asian Markets

Market indexes in Japan declined for the second day in a row and the yen traded near its 4-week low.

Hitachi was forced to lift its bid to acquire signaling business of Italian defense and aviation company, Finmeccanica. Nippon Steel to expand its steel in unit in western Japan.

Stocks in Tokyo extended losses for the second day in a row and the yen traded near its 4-week low against the dollar.

The Nikkei 225 Stock Average fell 111.56 or 0.6% to 18,703.60 and the broader Topix index slid 9.82 to 1,517.01.

The yen closed at 119.60 against one dollar.

In volatile trading, market indexes in Mumbai gyrated to a new intraday high and turned down sharply and lost 3% from the peak and closed down 0.7%.

Market rally of more than 400 points was sparked by the unexpected move from the central bank.

Though the rate cut was anticipated by traders after the release of financial budget of the central government, the move came sooner than expected, surprising the market.

Market indexes in the final hour failed to hold on to gains of the day 3% surge in the previous four sessions on the weakness in the banking sector.

The Reserve Bank of India unexpectedly lowered its benchmark repo rate 25 basis points to 7.5%.

Indian rupee eased 33 paisa to 62.25 against one dollar.

The Sensex Index dropped 213 or 0.7% to close at 29,380.73. The CNX Nifty slipped 73.60 or 0.8% to 8,922.65.

Eicher Motors Limited added 1% to ₹16,050.15 after the truck and heavy duty vehicles maker said Sweden-based Volvo sold its 4.7% stake in the company for ₹1,920 crore.

Essar Ports Limited climbed 4.9% to ₹124.30 after the company said Adani Group plans to buy ports and related assets of the company.