NST Online Business Times : latest
NST Online Business Times : latest |
| US stocks gain, HP shares plunge Posted: 03 Oct 2012 04:44 PM PDT NEW YORK: Hewlett Packard shares plunged Wednesday on concerns about the company's turnaround strategy but the markets overall closed higher, helped by firm reports on services sector growth and private hiring. Investors dumped HP, the shares closing down 13.0 per cent at US$14.90, after chief executive Meg Whitman said it would take time to turn around the company that built its fortune on printers and personal computers. That performance weighed down the blue-chip Dow Jones Industrial Average, which finished up 12.25 points (0.09 per cent) at 13,494.61. The broad-based S&P 500 was stronger, gaining 5.24 points (0.36 per cent) at 1,450.99, while the tech-rich Nasdaq Composite added 15.19 (0.49 per cent) to 3,135.23 Payrolls company ADP's private sector hiring report was better than expected, though at 162,000 jobs in September was still down by 14 per cent from August. "September is shaping up to be a better month than we were expecting judging by the two ISM reports (especially the improvement in orders) and the vehicle sales data," said analysts at RDQ Economics. "That said, the non-manufacturing ISM report did not support other labour market indicators that were suggesting a possible upside surprise as the employment index pointed to slower job growth in September." Trade was heavy in Wellpoint, which lost 0.6 per cent after Fitch downgraded the health benefits manager due to questions raised by its purchase of insurer Amerigroup. Discount retail chain Family Dollar jumped 3.9 per cent after reporting a 1.4 per cent increase in fiscal fourth-quarter earnings and forecasting steady growth in fiscal 2013. Second-tier wireless carrier MetroPCS confirmed its cash-and-stock merger with rival T-Mobile, creating a customer base of 42 million subscribers aimed at securing their footing in in a market dominated by AT&T, Verizon and Sprint Nextel. PCS shares fell 9.8 per cent, after having jumped 17.8 per cent on Tuesday in anticipation of the deal. AT&T and Verizon both gained 1.0 per cent, while Sprint Nextel picked up 6.1 per cent. -- AFP |
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