Home Business Market News: Best Buy, Nu Skin Enterprises, CSX Corporation

Market News: Best Buy, Nu Skin Enterprises, CSX Corporation

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The stock price of a significant number of stocks in the United States plunged, which resulted in the decline of Dow Jones Industrial Average (DJIA) and the S&P 500 on Thursday. The Nasdaq ended the trading session slightly positive today. The primary reason for the negative movement of the stock markets is the disappointing financial results of corporations that reported today.

In a telephone interview with Bloomberg, Robet Pavlik, chief market strategist at Banyan Partners LLC commented, “It’s not going to be a straight road up like what we saw in 2013. A lot of what we saw in 2013 was predicated on money flowing into the market from the Fed. It’s going to be an upwards revision to earnings consensus this year that will push the market higher.”

On the other hand, Sandy Lincoln, chief market strategist at BMO Global Asset Management opined that the market is “not screamingly cheap, but “not screamingly expensive” either based on fundamentals. Lincoln added, “We like the market here. There is reason be skeptical about what companies are able to do. The top line hopefully will be supportive enough to overcome the skepticism.”

Fourteen corporations listed in the S&P 500 reported their earnings results today. Among the 10 groups in the index, financial stocks suffered the most declines including Citigroup Inc (NYSE:C) and Goldman Sachs Group Inc (NYSE:GS) after both banks reported lower earnings results. The shares of Citigroup dropped 4% while Goldman Sachs fell

U.S. Markets

  • Dow Jones Industrial Average (DJIA)- 16,417.01 (-0.39%)
  • S&P 500- 1,845.89 (-0.13%)
  • NASDAQ- 4,218.69 (+0.09%)
  • Russell 2000- 1,172.94 (+0.14%)

European Markets

  • EURO STOXX 50 Price EUR- 3,150.20 (-0.59%)
  • FTSE 100 Index- 6,815.42 (-0.07%)
  • Deutsche Borse AG German Stock Index DAX- 9,717.71 (-0.17%)

Asia Pacific Markets

  • Nikkei 225- 15,747.20 (-0.39%)
  • Hong Kong Hang Seng Index- 22,986.41 (+0.37%)
  • Shanghai Shenzhen CSI 300 Index- 2,211.84 (+0.13%)

Stocks in Focus

The stock price of Best Buy Co., Inc. (NYSE:BBY) plummeted more than 28% after the company reported that its holiday sales results fell from $11.75 billion to $11.45 billion due to strong competition and supply constraints of major products such as iPhones and tablets as well as less consumer traffic during the primary week leading up to Christmas. The stock is trading around $27 per share.

The shares of Nu Skin Enterprises, Inc. (NYSE:NUS) also declined significantly on reports that the Chinese government is investigating the company on allegations that it is operating a pyramid scheme. The stock dropped more than 27% to around $76.15 per share.

CSX Corporation (NYSE:CSX) fell by almost 7% to around $27.25 per share after Stifel Nicolaus lowered its rating for the stock from Buy to Hold. The company reported fourth quarter net profit of $426 million or $0.42 earnings per share lower than its $449 million profit or $0.44 earnings per share in the same period last year. Its revenue during the quarter was $3 billion.

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