Stocks logged their third straight day of losses with the Dow dropping back below 16,000 and the S&P falling under 1,800. The inauspicious start to the month comes on the release of holiday shopping figures. On the upside Cyber Monday sales rose nearly 20% over last year. However, Black Friday receipts were about 3% lower than last year, and the push by many retailers to open on Thanksgiving itself seemed to have mixed results overall. The biggest economic indicator will come on Friday with the release of the Labor Department's November jobs report. That could help determine whether the Fed wants to begin tapering its bond-buying stimulus program.
Krispy Kreme (KKD) got fried today, dropping close to 20% on its earnings which came out after yesterday's closing bell. The doughnut chain says it made adjusted earnings of 16-cents a share, a penny above estimates. As for sales, they were pretty much in line with expectations at $114.2-million. So why did the stock sink like a rock? The company is lowering its guidance despite aggressive expansion outside the U.S. Prior to today's drop shares of Krispy Kreme were up 152% year-to-date.
Tesla (TSLA) is again on a tear, rising more than 16% today. The stock has recently been under pressure because of several fires involving the Model S sedan, but investigators in Germany have concluded the car is in fact safe. Separately, Morgan Stanley is calling Tesla a top pick, saying the stock's recent pullback is a buying opportunity. Shares have been down 27% over the last three months. Here in the U.S. the NHTSA is still conducting its own investigation into the Model S fires.
Apple (AAPL) touched a new 2013 high today thanks to new hints of a long-awaited deal with China Mobile. There are reports the cell carrier was briefly taking orders for the device. Apple has also confirmed that it has acquired Topsy, a company which analyzes tweets in an effort to identify business trends. Apple had dropped yesterday on news that hedge fund manager Jeffrey Gundlach had only modest expectations for the stock. The stock went into today's regular session down 6% over the past year.
Amazon (AMZN) was in the red today despite reports from third parties indicating they were a winner on Cyber Monday. The company may have benefited from the buzz surrounding delivery drones. They're not yet a reality, and may never be. Plus, there's word that UPS (UPS) is developing its own delivery drones. However, the sight of a prototype was great PR for Amazon ahead of the Cyber Monday spending spree. Amazon went in to today's regular trading session up 52% so far this year.
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