Hot Stock Minute
- Dean Arrindell at Hot Stock Minute2 hrs ago
SodaStream (SODA) shares cooled Thursday after soaring Wednesday on rumors that Starbucks (SBUX) might buy a 10% stake in the company, putting the value of the soda maker at $1.1 billion. This isn’t the first time rumors of investments in SodaStream have driven up the stock price. Just last week, shares of SodaStream spiked on reports that Starbucks, Dr. Pepper Snapple Group (DPS) and Pepsi (PEP) were in talks with soda stream to buy a stake in the company. And last year there were reports that Pepsi would buy SodaStream outright for more than $2 billion.
In the corresponding video, Yahoo Finance Senior Columnist Mike Santoli spoke with Lauren Lyster about the rumors of investment in SodaStream and its effect on the company’s share price.
- Deirdre Hughes at Hot Stock Minute5 hrs ago
The Food and Drug Administration today announced new regulations on the booming e-cigarette business. The proposed regulations call for a ban on sales of the electronic cigarettes to customers under the age of 18. The FDA’s recommendations will not be finalized until after a 75-day period of public comment. The new regulations would also require health warnings about the potential for addiction to nicotine. Under the proposal, manufacturers would have to report ingredients used in e-cigarettes to the FDA and seek the agency’s approval for products.
The regulations will not ban advertising or flavors like chocolate and bubble gum, which would appeal to children. The FDA said the current proposal lays the foundation for “many more actions” to come in restricting the use and marketing of e-cigarettes.
- Dean Arrindell at Hot Stock Minute5 hrs ago
General Motors (GM) reported earnings this morning that beat Wall Street estimates. Earnings came in at $0.06 a share or $0.29 a share, excluding items. They came in ahead of analysts’ estimates of $0.04 a share. Revenue rose to $37.4 billion, but didn’t meet analysts’ expectation of $38.43 billion.
GM’s revenue was helped by raising vehicle prices. The average sales price of all GM vehicles rose $2,000 over the last year to $32,794. The price of GM pickups rose $5,000 over the same period.
However, the company has been plagued with problems from faulty ignition switches. There are multiple investigations into its handling of the recalls that have been linked to 13 deaths.
In the corresponding video, Yahoo Finance Senior Columnist Mike Santoli spoke with Lauren Lyster about GM’s earnings in light of the recalls. He said, “It’s a wait and see year for GM.”
- Deirdre Hughes at Hot Stock Minute6 hrs ago
Apple (AAPL) and Facebook (FB) delivered some welcome earnings surprises after the close Wednesday. Apple shares were surging in the pre-market after the company came in well ahead of Wall Street expectations on strong iPhone sales. iPad sales were weaker. Apple also announced another $30 billion share buyback and a huge 7-for-1 stock split that has some speculating the company could be positioning itself as a potential Dow component.
Meanwhile, Facebook was also sharply higher in pre-market trading after the company reported better-than-expected results on strong ad revenue. Facebook said profits nearly tripled on a 72% increase in revenue.
Apple and Facebook soar on earnings news; Amazon earnings preview; Jobless claims and durable goods orders jumpDeirdre Hughes at Hot Stock Minute7 hrs ago
Jobless claims jumped 24,000 to 329,000 last week. Analysts were expecting 315,000 new claims for unemployment benefits. Separately, the Commerce Department said orders for durable goods rose 2.6% in March, better than the 2.0% increase economists were expecting.
Stocks were poised for a technology-led rally after strong reports from Apple (AAPL) and Facebook (FB) after the close Wednesday. Apple also announced another $30 billion share buyback and a huge 7-for-1 stock split that has some speculating the company could be positioning itself as a potential Dow component.
- Dean Arrindell at Hot Stock Minute23 hrs ago
A disappointing report on the housing market overshadowed some upbeat earnings report. New home sales in March fell 14.5% from February to an annual rate of 385,000, the lowest level since July. That was well short of the 450,000 economists were expecting. The Northeast was the only region to see the pace of sales pick up in March.
Median home prices rose to $290,000 in March, up 12.6% over last year.
In corporate news, Delta Air Lines shares (DAL) were up 6.07% after it reported earnings per share of $0.33 which beat estimates of $0.29 a share.
Shares of Gilead Sciences (GILD) were up 1.39% on news strong sales of its Hepatitis C drug Sovaldi which helped it beat earnings forecasts by wide margins.
- Dean Arrindell at Hot Stock Minute1 day ago
Do you love bacon? How much?
The price of bacon has gone up 13% in the last year and a whopping 53% since January 2010, according to 24/7 Wall St.
Prices of fruit, meats - even coffee - have increased dramatically over the last few years. Drought conditions and disease affecting crops and livestock are reducing supply and driving up the prices of many food staples.
While food prices are rising, the Federal Reserve is concerned that inflation is too low. In a speech last week, Federal Reserve Chair Janet Yellen said, “With inflation running at around 1%, at this point I think the risk is greater that we should be worried about inflation undershooting our goal and getting inflation back up to 2%.”
In the corresponding video, Yahoo Finance Editor-in-Chief Aaron Task spoke with Lauren Lyster about rising food prices at the same time the Fed is concerned about inflation being too low.
- Deirdre Hughes at Hot Stock Minute1 day ago
Stocks ended the day in the green. The Dow (^DJI) was up 0.40% The Nasdaq (^IXIC) up 0.97% and the S&P 500 (^GSPC) up 0.41%. Investors had a lot of news to digest with upbeat earnings reports from Netflix (NFLX), Comcast (CMCSA) and Harley-Davidson (HOG), a miss from McDonald’s (MCD) and a flurry of pharmaceutical deals.
- Dean Arrindell at Hot Stock Minute2 days ago
A new pipeline is releasing crude oil that had been stuck in the middle of the country and feeding it to refineries in the Gulf of Mexico. While that refinery is shipping gasoline and diesel to the East Coast, a growing portion of that oil is going to other countries like Brazil, the Netherlands and Mexico.
The Wall Street Journal, citing the U.S. Energy Information Association, reports that the country’s gas stockpiles are at their lowest levels for this time of year since 2011, while the average price for a gallon of gas on Monday was $3.68, up 4.2% compared to a year ago.
Nancy White, a spokesperson for AAA, is quoted in The Wall Street Journal saying, “Production is going overseas, so that impacts the supply here, and that will drive prices up.”