BUSINESS NEWS APRIL 18TH, 2016
No deal in Doha from major oil producers this weekend to cap crude production pushed oil prices down Monday but stocks shrugged off the negative news in the energy patch as Wall Street kicked off the week that will be dominated by earnings reports from 20% of companies in the Standard & Poor's 500 index. A hoped-for deal to cap oil production didn't happen Sunday, as Saudi Arabia was unwilling to strike a deal unless Iran was part of it. The lack of a deal took down prices of U.S.-produced crude to end down 1.4% at $39.78 a barrel after plunging more than 7% earlier in the day. Oil prices have rallied more than 50% since their lows in February amid hopes of a deal getting done in a world still awash with oil.
TCS BEATS THE STREET WITH STRONG NUMBERS
Though the impact of the US jury verdict in the Epic data theft case was clearly seen to be having an overhang among the top management of Tata Consultancy Services (TCS), the Mumbai-based company tried to bury those with a good set of numbers. After its Indian peer Infosys stole the limelight last week with a strong performance in the quarter ended March,TCS also beat the Street’s estimates with better-than-expected profits and revenues. India’s largest information technology services provider TCS’ fourth-quarter net profit at Rs 6,341 crore was up 64.4 per cent, year-on-year, and 3.8 per cent sequentially. Revenue at Rs 28,449 crore was up 17.5 per cent, year-on-year, and four per cent, quarter-on-quarter.
NORDSTROM PLANS TO LAY OFF UP TO 400 WORKERS
Nordstrom will eliminate between 350 and 400 jobs in pursuit of a leaner business model and about $60 million in cost savings, the retailer said Monday.Affected positions will primarily be from the company's corporate office and regional support teams and the changes are expected to be completed by the end of the second quarter. The company will look at getting rid of open unfilled positions first. Nordstrom, citing the need to evolve to meet customer demands, said the decision will help the company achieve more efficiency within its business. It plans to institute new operating models across its divisions, including re-evaluating the skills needed for particular roles and resetting leadership structures.
IBM REPORTS WORST REVENUE IN 14 YEARS
A double-digit gain in sales in IBM's cloud services division failed to prevent the 16th straight drop in quarterly revenue at the company, which is making a halting transition from its legacy hardware and services business. The company reported adjusted earnings per share of $2.35 on $18.7 billion in revenue, which fell 5% year over year. Analysts polled by S&P Global Market Intelligence had forecast $2.10 in earnings per share on $18.29 billion in revenue. Net income fell 13.5% to $2.01 billion. Shares (IBM) were volatile after hours, most recently down 5%. Although its first quarter earnings were better than analysts predicted, the company has now posted revenue declines for four years straight with CEO Ginni Rometty at the helm.