Market Minute: News Corp. Sees Ad Revenue Falling; Lululemon Exec Cashes In
Another rough day is in store for investors, as are tough times for a leading TV network. Those and more are what's in business news Thursday.
The Dow industrials (^DJI) slid another 126 points Wednedsay. It's the Dow's first three-day losing streak this year. That's a record 112 trading days without a mini-losing streak. The S&P 500 (^GSPC) fell 13 and the Nasdaq (^IXIC) lost 36 points.
And the market could come under more pressure this morning following big-time selloffs overseas. Japan's Nikkei index tumbled another six percent, plunging it into bear market territory. That means it's down 20 percent from the high it hit just three weeks ago.
In corporate news, ad revenue for the coming season at News Corp.'s (NWS) Fox Network is expected to drop 10 percent from a year ago, after a sharp decline in ratings for "American Idol" and other key shows. The Wall Street Journal also reports CBS and NBC, which is now owned by Comcast (CMCSA), are seen posting modest increases in ad revenue.
Britain's Parliament issued a harsh report criticizing Google (GOOG) for its tax avoidance, and called on the revenue service to fully investigate the company. It also urged closing the accounting loopholes Google uses.
Lululemon Athletica's (LULU) chairman, Dennis J. Wilson, sold $50 million worth of company stock just days before the shares plummeted 17 percent on word its CEO was resigning. On first blush, the timing is suspicious, but the chairman last year set up plan to sells shares at specific intervals, so he wasn't trading on inside info.
Safeway (SWY) has agreed to sell its Canadian supermarkets for $5.7 billion. It will use some of the money to pay down debt.
Shares of PVH Corp. (PVH) are in style today. The owner of Tommy Hilfiger, Calvin Klein and other brands, easily beat earnings expectations. It also raised its revenue outlook for the current quarter.
It's the same story for discount retailer Five Below (FIVE) -- better than expected earnings and an upbeat forecast. And a billion-dollar initial-public offering from Coty hits the market today, one of the largest ever by a consumer-products company. It will trade under the ticker symbol, COTY.
Check back after the market closes Thursday for the new DailyFinance closing bell report.
-Produced by Drew Trachtenberg