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Omar Venerio
Omar Venerio
Articles (1650) 

World Capital Markets Get Crushed Amid Pandemic Risks

L Brands advances on fourth-quarter results

U.S. stocks were in the red on Thursday as the coronavirus continues to spread around the world. The Dow Jones Industrial Average fell 2.4% to 26,254, the S&P 500 Index slid 2.5% to 3,036 and the Nasdaq Composite Index retreated 2.6% to 8,728.

Non-index stocks have also posted gains and losses recently. Shares of L Brands Inc. (NYSE:LB) jumped almost 2% on Thursday after the company announced fourth-quarter results Wednesday afternoon. The company posted earnings of $1.88 per share, topping estimates by 2 cents. Revenue of $4.71 billion declined 2.9% year over year and fell $30 million short of expectations.

During the quarter, Victoria’s Secret's sales fell 10% to $2.28 billion due to lower traffic and average unit retail. Total digital sales also recorded an 8% decline.

Bath & Body Works' sales rose 11% to $2.18 billion, with a 10% increase in comparable sales and 5% improvement in comparable store sales. The increase was attributed to growth across its body care, home fragrance and soaps categories.

Looking ahead to the first quarter of 2020, the company expects an adjusted loss per share of 5 cents, despite considering the spinoff of the Victoria’s Secret business.

During the quarter ended Dec.31,Charles Brandes' firm trimmed itsholding by 11% to 55,063 shares, while Philippe Laffont sold out of the stock. Ray Dalio and Lee Ainslie (Trades, Portfolio) reduced their holdings by 98% and 7%.

Gainers

  • Laboratory Corp. of America Holdings (LH) +0.3%

Losers

Global markets

The main European stock markets traded in the red. The U.K.'s FTSE 100 plummeted 3.49%, France's CAC 40 fell 3.32%, Germany's Dax declined3.19% and Spain's Ibex 35 retreated 3.55%.

In Asia, Japan's Nikkei 225 fell 2.13%, India’s BSE Sensex slid 0.36%, Hong Kong's Hang Seng advanced 0.31% and China's Shanghai Composite gained 0.11%.

Disclosure:The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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