New York City, New York – (StockNewsDesk) – 11/07/2014 — Wall Street saw some profit booking as October’s payroll data came in below expectations, however, it was slightly offset by the unemployment rate. This month, there is evidence that point towards a slowing economy. Export figures released last week suggested weakness in economics from the European and Chinese front. In addition to this, the Services Purchasing Managers index (PMI) released a few days back also pointed towards a slower economy. Salix Pharmaceuticals eroded 38% of the market share in a single day as profits came in below expectations. An audit probe will take place over the company’s statements.
Nonfarm payroll data of the company came in at 214,000 compared to the Street’s expectation of 231,000 and earlier reading of 256,000. However, the good news is that for the ninth consecutive time, employment figures have been more than 200,000. The negative effect of the nonfarm payroll was somewhat offset by better than expected unemployment rate. The unemployment rate of the country improved marginally to 5.8% from the earlier record rate of 5.9%. Lower payroll data prompted the rise in the gold and crude oil futures. Each of them was over 1% up as the payroll data came in below expectations. Additionally, the USD which had gained strength against most of the currencies, especially currencies of the developing nations, weakened after posting its best rally in more than a year.
Salix Tanks Over 38%
Shares of Salix Pharmaceutical cracked more than 38% as it reported sales and profits below the Street’s estimate. For the fourth quarter, sales of Salix came in at $325 million. The sales of the company grew nearly 26% on a yearly basis. However, the figure missed the consensus estimates by more than $100 million. The profit for the fourth quarter was also disappointing. Having missed analysts’ expectation of 79 cents, Salix reported profit of $1.16 a share. On a yearly basis, Salix reported profits 2 cents lower than the Street’s expectations, at $1.53 a share, up 72% year over year. Sales of the company came in at $355 million, disappointing investors with $37 million. However, revenue grew by 49%.
Resignation of the company’s Chief Financial Officer (CFO) came in as a major shock to the investors. The Chief Executive Officer (CEO) of the company said that an audit had taken place at the company over manipulation of inventory. He further added that the probe of company statements is taking place. In the meantime, Senior Vice President, Timothy Creech has become the Interim CFO.