Market News: Avago Technologies, Dyax Corp, PVH Corp

Market News: Avago Technologies, Dyax Corp, PVH Corp
market news

The stock markets in the United States and other parts of the world declined today as investors were disappointed with the stimulus decision of the European Central Bank (ECB).

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ECB President Mario Draghi announced the Governing Council decided to lower the interest rate on deposit facility by 10 basis points to -0.30%. The interest rates on main refinancing operations and marginal lending facility remain at 0.05% and 0.30%, respectively. The Governing Council also extended asset purchase program (APP)—monthly purchases of €60 billion until the end of March 2017 or beyond if necessary.

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Investors were expecting the ECB to implement deeper cuts in lending rates and to increase its bond-buying program to support the economic growth in the European region.

Michael Block, chief equity strategist at Rhino Trading Partners, told Bloomberg, “Draghi disappointed, the long bond is down over three points, trades are getting messed up, it all snowballed and on days when that happens you have a problem. It’s the idea the central banks won’t be there to bail out equities.”


On the other hand, Ryan Larson, head of equity trading at RBC Global Asset Management, commented that there is “no panic” in the stock markets. Investors were just disappointed with the ECB’s decision.

“There were huge expectations for Mr. Draghi and the ECB to provide further stimulus at today’s meeting and in the markets mind they fell short of those expectations,” said Larson.

Yesterday, Federal Reserve Chairperson Janet Yellen stated that the U.S. economic growth is sufficient enough to withstand higher interest rates. The Department of Labor reported that the number of people who applied for unemployment benefits increased by 9,000 to 269,000 for the week ended November 28.

U.S. Markets

  • Dow Jones Industrial Average (DJIA) – 17, 479.34 (-1.41%)
  • S&P 500- 2,049.80 (-1.43%)
  • NASDAQ- 5,037.53 (+1.67%)
  • Russell 2000- 1,170.25 (-1.80%)

European Markets

  • EURO STOXX 50 Price EUR- 3,343.34 (-3.61%)
  • FTSE 100 Index- 6,275.00 (-2.27%)
  • Deutsche Borse AG German Stock Index DAX- 10,789.24 (-3.58%)

Asia-Pacific Markets

  • Nikkei 225- 19,939.90 (+0.01%)
  • Hong Kong Hang Seng Index- 22,417.01(-0.28%)
  • Shanghai Shenzhen CSI 300 Index- 3,749.30 (+0.73%)

Stocks in Focus

The stock price of Avago Technologies climbed more than 9% to $144.78 per share. The company reported quarterly earnings that exceeded the expectations of analysts. Avago Technologies delivered earning of $2.51 per share compared with the 2.34 per share consensus estimate for the fourth quarter.

Dyax Corp surged over 12% to $37.43 per share. The company announced that the Federal Trade Commission (FTC) terminated the waiting period for the proposed acquisition by Shire Pharmaceuticals International.

The stock value of PVH Corp fell more than 11% to $83.02 per share despite reporting better-than-expected earnings for the third quarter. Investors were disappointed with the company’s weak outlook for the fourth quarter.


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