Starbucks calls weak sales an 'anomaly'
Wall Street is having a tough time getting back on course after a record-breaking week. Stocks are mixed as investors sift through a fresh batch of earnings and look ahead to next week’s Fed meeting.
The “anomaly” at Starbucks
Starbucks (SBUX) cut it sales outlook for the year after posting weaker-than-expected revenue in the second quarter. Starbucks CEO Howard Schultz called the disappointing sales figures an “anomaly” and blamed the shortfall on political and social unrest both at home and abroad.
Stocks to watch
Chipotle (CMG) posted earning and revenue that missed analysts’ estimates in the second quarter with sales down nearly 17% from a year ago, as its free food promotion failed to win back customers after a series of food scares. However, the company said that July same-store sales have improved somewhat and that it also introduced its first-ever rewards program
Dow component General Electric (GE) fell in early trading even though the industrial conglomerate reported a beat on both its top and bottom lines for the second quarter. Revenue jumped nearly 15% from a year ago thanks to strength in its power business.
Honeywell (HON) profit beat expectations in the second quarter, while revenue fell short of forecasts sales rose more than 2.2% from a year ago driven by strong sales in its automation and climate control systems division.
Trump accepts
Donald Trump accepts the Republican nomination for presidency of the United States. He also promises to not only be the voice for frustrated Americans but also to ‘fix a broken system.’ Introducing the Republican nominee was his daughter, Ivanka Trump. She talked about a variety of issues but highlighted that her father would change labor laws and provide equal pay for women.
Ailes’ exit: What it means for Fox
After 20 years at the helm, Roger Ailes is out as the CEO of Fox News. This comes amidst sexual harassment allegations by former anchor Gretchen Carlson, who filed a formal lawsuit against Ailes. No word on what Ailes will do next.
Related: The fall of Roger Ailes
