Thursday, February 22

UPS Drops Pressure on Wall Street After Disappointing Figures

UPS was among the losers on the New York stock exchanges on Tuesday. The large American parcel delivery company booked less turnover and profit last quarter than experts had expected.

CEO Carol Tomé said declining retail sales in the United States resulted in lower parcel volumes and continued weakness in Asia. However, UPS expects volume to remain under pressure due to macroeconomic conditions. The stock was down 7.5 percent.

In addition to UPS, other large companies such as General Motors, McDonald’s, PepsiCo, 3M and General Electric also released figures. Investors are also looking forward to the quarterly reports from software group Microsoft and Google parent company Alphabet, which will be announced after trading on Wall Street.

The overall mood on Wall Street remained subdued. Shortly after the start of trading, the Dow Jones index was 0.1 percent lower at 33,848 points. The broad S&P 500 fell 0.4 percent to 4120 points, and the tech exchange Nasdaq fell 0.6 percent to 11,969 points.

General Motors fell 1.4 percent, despite an increase in earnings estimates by the automaker. GM will also build a battery factory for electric cars in the US with the South Korean Samsung SDI.

General Electric gained 0.3 percent. The industrial conglomerate performed better in the past quarter than experts had expected. Industrial group 3M, known for Post-it stickers, mouth masks and Scotch tape, announced that it would cut 6,000 jobs due to falling demand in several important markets. 3M saw turnover and profit in the first quarter fall less than feared and was set 0.9 percent higher.

McDonald’s lost 0.8 percent. The fast food chain sold more snacks last quarter despite price increases and saw turnover and profit higher. Investors had hoped for more. Soft drinks and snack maker PepsiCo (plus 1.5 percent) also performed well in the first quarter and raised its full-year sales and profit expectations.

First Republic Bank plummeted more than 27 percent. As a result, the regional bank will reduce its workforce by 20 to 25 percent to save costs. The measures follow the strong outflow of capital at the bank during the crisis in the banking sector in March.

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