- Bill McColl at Hot Stock Minute5 hrs ago
Want to get your spiced latte in your pajamas? You can soon.
Starbucks (SBUX) says it will be delivering coffee to your door in selected markets during the second half of next year. It’s the latest effort by the giant coffee retailer to boost sagging sales. But Yahoo Finance’s Jeff Macke says this likely won’t be a cash cow for the company.
“It’s not a fantastic business model to go around delivering coffee,” he says. “It’s not a really huge margin product.”
However, Macke credits CEO Howard Schultz with trying to come up with new ways to attract customers as Americans change their shopping habits.
“Howard Schultz has been warning about slowing mall foot traffic for quite a while now,” he notes. “So in terms of delivery, he’s going to go after that market; in terms of apps, software, he’s going after that. He’s basically doing anything you can do as a great merchant in the face of a consumer that’s not spending.”
Macke points to the government’s just-released data showing U.S. consumer spending unexpectedly dropped 0.2% in September.
- Kathy Cherpelis at Hot Stock Minute5 hrs ago
Some stocks the Yahoo finance team is watching for you today.
Shares of Citigroup (C) are on investors' radar in early trading. Legal woes are still weighing on the investment bank. The company cut its outlook for the third quarter to reflect a $600million increase in legal costs. Citigroup is one of several major banks expected to settle allegations with UK finance regulator that the banks manipulated foreign currency markets.
GoPro (GPRO) shares are on the go ahead of the bell. The maker of wearable cameras for extreme sports reported earnings and revenue that blew past estimates. Sales rose more than 45% from a year earlier. The company also lifted its sales outlook for the current quarter and said it’s seeing strong demand for its new Hero4 camera.
- Kathy Cherpelis at Hot Stock Minute6 hrs ago
The rally continues on Wall Street this morning with the Dow Jones Industrials (^DJI) touching an intraday high. Investors got a Halloween treat from the Bank of Japan after it surprised markets by expanding its massive stimulus program
Yahoo Finance Editor-in-Chief Aaron Task describes the moves by global central banks as a relay race.
“The Fed did the first three or three and half laps, if you count operation twist, and now they’re looking to hand off the baton to either the central bank of Japan, or maybe god willing the ECB, and also the People’s Bank of China has a lot of fire power at its disposal they could be doing a lot more stimulus there, if they choose to do so.”
“This is a real challenge for the bears because you’re fighting against not just the Fed, but multiple central banks,” Task added.
Another batch of stronger-than-expected quarterly results also gave investor sentiment a boost.
- Bill McColl at Hot Stock Minute1 day ago
Big credit card companies are hoping to take advantage of a new opportunity to get into the Chinese market. The big question is: Can they?
China says it is putting an end to its monopoly on credit card operators in the country. Previously, only one provider-- state-run China UnionPay-- was allowed to handle bank card clearing. Officials now say foreign firms will be able to apply to provide such services.
That could be a major breakthrough for companies such as Visa (V) and MasterCard (MA) hoping to tap into China’s massive consumer market. However, Yahoo Finance Senior Columnist Michael Santoli says the devil is in the details.
“We have to see the actual details of what the competitive setup will be,” he says. “There’s a lot of talk that it’s not going to be completely level where Visa and MasterCard can compete exactly on the same terms as the state-approved monopoly.”
Santoli notes the Chinese government could make it very tough on foreign firms looking to break through.
- Bill McColl at Hot Stock Minute1 day ago
The now old-line software company is trying to get its “cool” on by taking on the King of Cool in the gadget department.
Starting today, Microsoft is selling a smartwatch called “Microsoft Band” to compete with Apple Watch.
However, Yahoo Finance Senior Columnist Michael Santoli says “compete” might be too strong a word.
“It’s great from a Microsoft sense to have an entry in all these little emerging areas…it’s finally the newer, somewhat-quicker-moving Microsoft,” he says. “But I don’t necessarily think we’re going to be talking about the Microsoft device against the Apple Watch.”
One selling point for Microsoft: the pricetag for Microsoft Band comes in at just $199, whereas Apple Watch starts at $349. And Microsoft is gaining an advantage by getting its product out before the big holiday shopping season. Apple Watch won’t hit store shelves until early next year. Still, Santoli doesn’t think the head start will make a huge difference in demand because of the difference in the two devices.
- Kathy Cherpelis at Hot Stock Minute1 day ago
Another earnings bonanza on Wall Street.
Visa (V) shares were higher in early trading. The world's largest processor of debit and credit card payments reported earnings and revenue that topped Wall Street forecasts. Revenue was up nearly 9% from a year earlier as consumer spending picked up thanks to an improving labor market. Visa said that mobile payments will be a big driver of growth going forward. However, the company cited some potential headwinds heading into next year, including the modest pace of the economic recovery and geopolitical concerns.
Rival MasterCard (MA) shares also got a boost in pre-market trading after reporting earnings and sales that beat Wall Street views. Revenue rose more than 12% from a year earlier as more people used their credit cards for purchases.
- Yahoo Finance at Hot Stock Minute1 day ago
It's a case of good news may be bad news on Wall Street. Stocks are wobbly this morning after the U.S. economy grew at a faster-than-expected rate in the third quarter, sparking speculation that the Federal Reserve may raise interest rates sooner rather than later.
Gross Domestic Product grew at 3.5% rate in the third quarter according to the Commerce Department. That was above the 3% economists were looking for, but it was lower than the 4.6% growth we saw in the second quarter of the year.
Meantime, the number of people filing for first-time unemployment benefits rose for a second week in a row. The Labor Department said initial jobless claims rose by 3,000 to 287,000 last week.
- Bill McColl at Hot Stock Minute2 days ago
Investors in space travel likely won’t be deterred despite yesterday’s launch failure of an Antares rocket owned by Orbital Sciences (ORB). But they may be slowed down a bit.
Shares of the company sank after the early evening crash just after liftoff at the Wallops Island, Virginia launch pad. The unmanned vehicle was carrying supplies to the International Space Station.
Yahoo Finance Editor in Chief Aaron Task believes Orbital Sciences, as well as other space investors such as Elon Musk of SpaceX and Alliant Techsystems (ATK), will just move on from here.
“Orbital Sciences and NASA don’t have to go back to the drawing board, but they are going to need to take a lot of time to figure out what went wrong and that’s going to delay and make more expensive future launches.”
NASA has been farming out its space operations to private firms for several years, and Task says that hasn’t necessarily made space travel that much better.
- Kathy Cherpelis at Hot Stock Minute2 days ago
Another blast of corporate earnings hit Wall Street.
Facebook (FB) shares fell in early trading after the social network company said it would ramp up spending dramatically next year and projected revenue in the current quarter would slow. That took the shine off of Facebook's better-than-expected earnings and revenue, which were fueled by strong growth in mobile advertising.
Hershey (HSY) shares turned sour ahead of the bell. The maker of Hershey Kisses and Reese's Peanut Butter Cups reported earnings and revenue that missed analysts' estimates. The company also cut its earnings outlook for the year because of weaker-than-expected sales growth overseas.
Wall Street looks to end of Fed bond buying; Facebook shares drop on future outlook; Orbital Sciences stock crashes after rocket crashYahoo Finance at Hot Stock Minute2 days ago
Stocks are mixed this morning. Investors are playing it close to the vest as Wall Street awaits word that the Federal Reserve will put an end to its bond buying program.
Yahoo Finance Editor-in-Chief Aaron Task said what the markets will be watching for in the Fed’s statement later this afternoon (2 p.m. EST) is, “Do they change the language about labor utilization and slack and the timing of when they might think about raising rates.”
The technology sector feelling the pressure from Facebook ( FB ) shares, which fell in early trading. The social network company said it would ramp up spending dramatically next year and projected revenue in the current quarter would slow. That took the shine off of Facebook's better-than-expected earnings and revenue, which were fueled by strong growth in mobile advertising.