Citigroup (C) reported better-than-expected earnings before the bell. The company reported earnings of $1.30 a share for the quarter and revenue of $20.1 billion. Analysts were expecting $1.14 a share and $19.37 billion in revenue. The Wall Street Journal also reported that Citigroup is cutting between 200 and 300 jobs worldwide. Last month, the Federal Reserve rejected Citi's proposal to boost its dividend and buyback more shares. Citigroup's results were welcome news to traders after J.P. Morgan's (JPM) disappointing results on Friday.
Watch Kraft (KRFT) today as the company rolls out a new image campaign for Maxwell House. Kraft is reportedly planning to quadruple ad spending on the coffee brand after the advertising budget was slashed last year. Maxwell House will also get a new look. The brand has fallen from the number one spot to number two behind Folgers. Kraft is also launching a social media campaign to try and recapture Maxwell House's former number one position.
And we'll be watching shares of Herbalife (HLF) after a report that the FBI and the Department of Justice are investigating the company. The criminal investigation is a separate inquiry from civil investigations the Security and Exchange Commission and the Federal Trade Commission have opened. The U.S. Attorney's office in Manhattan and the FBI have not said what they are investigating and the company hasn't been accused of any wrongdoing. Herbalife said in a statement that it has no knowledge of an investigation by the FBI or the Justice Department. The company has been under heavy criticism from hedge fund manager William Ackman who has said Herbalife is a pyramid scheme.
- Crime & Justice
- Maxwell House
- The Wall Street Journal