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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Pharma & Biotech

US stocks recover, but Viacom helps Nasdaq underperform

The Nasdaq lost ground by the Tuesday close, weighed down by big fallers such as media group Viacom, while the Dow and S&P were barely changed on the day after a late rally by sectors including healthcare countered another drop in oil price

Only the Nasdaq lost ground by the close on Tuesday, weighed down by big fallers which included media group Viacom (NASDAQ:VIAB), while the Dow and S&P were barely changed on the day after a late rally by sectors including healthcare countered another drop in oil prices.

The Dow Jones Industrial Average ended down just 0.08% at 16,014.38 and the S&P500 index shaved off just 0.07% to 1,852.21. The Nasdaq Composite lost 0.35% to end at 4,268.76.

The late rally in healthcare stocks - which ended down 0.36% on the day - was enough to repair earlier damage to French pharmaceuticals group Sanofi (NYSE:SNY). Having been down around 1.3% earlier in the session after the company reported the impact which recalling anti-allergy drug Allerject had in its fourth quarter, Sanofi ended down 0.87% at US$38.87 on Wall Street.

Viacom, meanwhile, had a rougher day of it and ended down 21.5%, or US$8.99, at US$32.86 - its lowest share price in nearly six years. That followed disappointment over the company's earnings report and what some analysts saw as firebrand remarks from its recently-installed chairman Philippe Dauman. You have to go back to March 2010 to find a similar share price on Viacom.

Helping steady the nerves of the broader tickers were the likes of Coca-Cola Co (NYSE:KO) whose latest batch of earnings was well-received by analysts and the market.

Oil prices marked another drop. The US benchmark future, the West Texas Intermediate deliverable in March, dropped 4% to US$28.51 a barrel.

OPEN

Wall Street equities were a bit steadier after opening sharply lower in Tuesday’s early deals.

The Dow Jones, at about 11:00am, was down 98 points or 0.6% changing hands at 15,928 while S&P 500 and Nasdaq each moved about 0.5% lower.

It follows weakness in Asia - specifically Japan, where the Nikkei dropped more than 900 points or 5.4% - and as Germany’s industrial production in December fell to lows not seen in four months.

Oil prices also remain a focus. And West Texas Intermediate crude was still just below $30 per barrel, while Brent was changing hands just above of $32.

Several big name earnings reports were in focus.

Coca-Cola Co (NYSE:KO) shares moved slightly higher to $42.80 after it had better than expected revenue and profit in the fourth quarter.

Mass media group Viacom (NASDAQ:VIAB) slumped $5.67, 13.5%, to $36.21. Its earnings report revealed a lacklustre performance for the Paramount Pictures business and as the MTV and Comedy Central TV networks had weak ratings.

Department store retailer Sears (NASDAQ:SHLD) gave up 4.6% to $15.95 after its earnings fell short of expectations and said it would accelerate closures of unprofitable stores.

Fast food restaurant chain Wendy’s (NASDAQ:WEN) fell 5% to $9.64 even though its fourth quarter was slightly better than expected.

Hotels firm Wyndham Worldwide (NYSE:WYN) gained almost 3% as its results were also ahead of the Street’s expectations.

PRE-OPEN

Wall Street futures point to lower open

Futures indices bode ill for the start of Tuesday’s trading, with the Dow Jones indicating a triple-digit loss on the open.

At 16,027 futures for the Wall Street’s blue-chip benchmark are down 123 points, while the S&P 500 and Nasdaq Composite also point lower.

It follows weakness in Asia – specifically Japan, where the Nikkei dropped more than 900 points or 5.4% - and as Germany’s industrial production in December fell to lows not seen in four months.

Oil prices also remain a focus. And West Texas Intermediary crude was still just below $30 per barrel, while Brent was changing hands just shy of $33.

In the coming hour, ahead of New York’s opening bell, attentions will focus more on corporate earnings.

Coca-Cola (NYSE:KO), Viacom (NASDAQ:VIAB, Sears (NASDAQ:SHLD) and Wendy’s (NASDAQ:WEN) and hotel firm Wyndham (NYSE:WYN) are among those reporting today.

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