The stock markets in the United States declined primarily due to the disappointing financial results of companies in the retail industry as well as the violence in Ukraine. In a telephone conversation, Russian President Vladimir Putin discussed with Italian Prime Minister Matteo Renzi regarding the need to stop the bloodshed in Ukraine. On the other hand, Ukraine President Petro Poroshenko promised to strengthen the country’s defenses against “de facto” Russian incursion after separatists gained ground in intensified fighting as they opened as new front neat the port of Mariupol. Russia repeatedly denied allegations that it is secretly providing arm support to the separatists. Denis Pushlin, the leader of the rebels in Donetsk stated that Russia was not involved in its current offensive. According to him, “If Russia entered into the war, the counter-offensive would already be in Kiev. For now, we do without outside help.” He added that they were receiving more volunteers from places as far as Serbia. Commenting on the situation, Bob Landry, executive director and portfolio manager at USAA Investment Management told Bloomberg, “These geopolitical events tend to be transitory, where the market may drop over the short-term but then tends to recover pretty quickly. Some of the economic data and home sales could potentially moderate some of the losses this morning.” Meanwhile, the Department of Commerce reported that the economy of the United States expanded more than expected for the second-quarter. The U.S. gross domestic product (GDP) climbed to 4.2% from 4% on an annualized rate. Wilmer Stith, a money manager at Wilmington Trust Investment managers commented, “This patchwork of broader and deeper economic expansion is well under way in the United States.” He added, “If you look at unemployment claims, that should suggest we’ll get a very nice healthy payroll number next Friday.”
U.S. Markets
- Dow Jones Industrial Average (DJIA)- 17,079.57 (-0.25%)
- S&P 500- 1,996.75 (-0.17%)
- NASDAQ- 4,557.70 (-0.26%)
- Russell 2000- 1,167.51 (-0.44%)
European Markets
- EURO STOXX 50 Price EUR- 3,164.44 (-0.94%)
- FTSE 100 Index- 6,805.80 (-0.36%)
- Deutsche Borse AG German Stock Index DAX- 9,462.56 (-1.12%)
Asia-Pacific Markets
- Nikkei 225- 15,459.86 (-0.48%)
- Hong Kong Hang Seng Index- 24,741.86 (-0.48%)
- Shanghai Shenzhen CSI 300 Index- 2,311.28 (-0.70%)
Stocks in Focus
The stock price of Genesco Inc. (NYSE:GCO) declined more than 7% to $81.94 per share after company reporting weak earnings for the second-quarter. The retailer of accessories, apparel and footwear, said its earnings declined to $4.69 million or $0.20 per share from $8.34 million or $0.36 per share in the same period last year. Its net sales increased 7% to $615.47 million. Genesco reduces its adjusted earnings outlook for the fiscal 2015 in the range of $5.10 to $5.20 per share from its previous guidance of around $5.40 to $5.55 per share. The shares of William-Sonoma, Inc. (NYSE:WSM) fell nearly 12% to $65.93 per share after the company issued a third-quarter earnings guidance in the range of $0.58 to $0.63 per share, lower than the $0.66 per share consensus estimate of Wall Street analysts. Signet Jewelers Ltd. (NYSE:SIG), the parent company of Zales and Kay Jewelers gained more than 7% to $116.37 per share after reporting better than expected earnings for the second-quarter. The company posted earnings of $58 million or $0.72 per share on $1.29 billion in revenue, up by 39%.
