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Thursday's most followed in U.S. including United Technologies, Lilly, Constellation, Coach, Domino's, Zale, Intel, Agrium

Published: 16:20 03 Oct 2013 BST

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U.S. stocks dropped as weekly jobless claims rose less than expected in the latest week, growth in the U.S. services sector cooled last month, while leaders in Congress showed no sign of progress towards resolving the stalemate. The Dow Jones Industrial Average (INDEXDJX:.DJI) dipped 0.8 percent at 11:14 a.m. in New York. The S&P 500 (INDEXSP:.INX) sank 0.9 percent. Most followed shares included United Technologies, Eli Lilly, Constellation Brands, Coach, Domino's Pizza, Zale, Intel and Agrium.

United Technologies Corp. (NYSE:UTX), a U.S. defense contractor, retreated 1.2 percent to $103.76 after saying it could be forced to furlough as many as 5,000 workers starting next week if the government shutdown persists. The first effect of the shutdown will be layoffs for about 2,000 Sikorsky Aircraft employees in Connecticut, Florida and Alabama on Oct. 7, United Technologies said in a statement after markets closed yesterday. Sikorsky Aircraft produces the BLACK HAWK helicopter. They may be followed by 2,000 furloughs at Pratt & Whitney and UTC Aerospace Systems if the shutdown lasts into next week. The shares had rallied 28 percent this year through yesterday. 

Eli Lilly & Co. (NYSE:LLY), a drug maker, slumped 3.6 percent to $48.75. The company, which is trying to rebound from painful patent expirations on its medicines, said it would have to cut costs to achieve its financial goals through 2014. Lilly said slowing growth in emerging markets and the devaluation of Japan's yen were hurting its results. 

Constellation Brands Inc. (NYSE:STZ), the world's biggest branded wine maker, gained 2.2 percent to $59.52 after reporting higher quarterly earnings, aided primarily by the acquisition of Grupo Modelo's U.S. beer business. The company said net income was $1.52 billion, or $7.74 a share in the second quarter ended on August 31, compared with $124.6 million, or 71 cents a share, a year earlier, prior to the acquisition. The stock has rallied 82 percent so far this year.

In consumer discretionary shares, Coach Inc. (NYSE:COH), a luxury goods maker, rose 1.5 percent to $55.13. Cantor Fitzgerald started coverage of the New York-based company with a "buy" rating, pointing to sales momentum and a discounted valuation. 

Domino's Pizza Inc. (NYSE:DPZ), a pizza restaurant operator, snapped a three-day winning streak, losing 1.8 percent to $68.35. Oppenheimer lowered the shares to "perform", despite its opinion that operating metrics and management execution will remain elite. The firm sees constrained upside opportunity for earnings and a cycle of tough year-earlier comparisons. 

Zale Corp. (NYSE:ZLC), the operator of the Zales and Piercing Pagoda jewelry chains, sank 9.5 percent to $14.25. Golden Gate Capital Inc. may look to sell a 25 percent stake in the Irving, Texas-based company after exercising the warrants it received as part of the rescue financing the private-equity firm offered the company more than three years ago. 

Elsewhere in equities, Agrium Inc. (NYSE:AGU) (TSE:AGU), the largest U.S. farm-products retailer, added 0.7 percent to $88.90. The Calgary, Canada-based company said Chief Operating Officer Chuck Magro will succeed Mike Wilson as chief executive officer at the beginning of the year. Wilson, 62, will retire from the company at the end of the year after 10 years as CEO, Agrium said. 

Intel Corp. (NASDAQ:INTC), the world's largest semiconductor maker, retreated 1.2 percent to $22.63. Intel has been dropped by Lenovo (OTCMKTS:LNVGY) for that company's new K900 smartphone, with Lenovo choosing to employ a chip made by Qualcomm Inc. (NASDAQ:QCOM) instead.

Angie's List Inc. (NASDAQ:ANGI), a review site, tumbled 12 percent to $18.49 after cutting membership prices by 75 percent in several key markets, according to the Wall Street Journal.  

American depositary receipts of BP Plc (NYSE:BP), the world's third-largest charterer of ships to carry oil, advanced 1 percent to $42.80 after winning a favorable ruling from a federal appeals court, which revived the London-based company's claims that a judge misinterpreted the settlement related to the 2010 oil spill.

 

 

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