BUSINESS NEWS FEBRUARY 5TH 2016
U.S. JOB GROWTH DECLINES IN JANUARY
A rout in tech stocks thanks to LinkedIn's massive drop pushed U.S. equities to post their largest weekly drop in a month. U.S. employers added 151,000 jobs in January. The figure is a sharp decline from recent months, as companies shed education, transportation and temporary workers. The unemployment rate, which is calculated from a different survey, fell to 4.9% from 5%. Job gains for November & December were revised down by a total 2,000. Average hourly wages rose 12 cents to $25.39, and are up 2.5% the past year.
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LINKEDIN SHARES PLUNGE AFTER EARNINGS GUIDANCE
Shares of LinkedIn plummeted today to their lowest level in more than three years, a day after the professional social-networking company reported significantly lower revenue projections for 2016. LinkedIn delivered a fourth-quarter earnings report in which the company forecast 2016 revenue of between $3.6-$3.65 bn; widely missing analyst estimates. LinkedIn is facing a slowdown in advertising. The firm is also suffering from its decision to phase out one of its marketing tools, Lead Accelerator. The phasing out of the tool alone will cost the firm $50 mn in potential revenues.
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TYSON FOODS PROJECTS RECORD PROFITS
U.S. meat and poultry giant Tyson Foods has reported higher-than-expected first-quarter earnings & raised its financial forecasts for 2016. Net Income attributable to the company rose to $461 mn, up from $309 mn from the first quarter last year. Quarterly sales totaled $9.15 bn, down 15.4% from the nearly $10.82 bn reported for the same period last year.
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MATTEL & HASBRO MAY BE LOOKING TO MERGE OPERATIONS
Toy manufacturers Mattel & Hasbro may be looking to merge their operations according to a Bloomberg report. Mattel had unsucesfully tried to buy Hasbro 20 years ago for $5.2 bn.A merger would create a formidable toy company, combining Mattel's dominance in girl toys with Hasbro's traditional focus on toys for boys.
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