Stocks rally after Yellen says the case for raising rates has strengthened
After a week of waiting, Wall Street finally got what it wanted. All three major averages (^DJI, ^GSPC, ^IXIC) turned higher after Fed Chair Janet Yellen sounded a little less dovish when speaking in Jackson Hole this morning.
“Indeed, in light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months,” Yellen said.
Stocks to watch
Anheuser-Busch InBev (BUD) expects its merger with rival SABMiller to lead to about a 3% reduction in its workforce over the next three years, once the deal is complete. The two companies currently employ 220,000 workers worldwide.
GameStop (GME) shares fell in early trading. The video game retailer reported earnings that matched expectations, but revenue came in short of forecasts for the second quarter, due to weaker than expected same-store sales. The company said lack of new video game titles and new information being released about upcoming new consoles hurt sales.
Ulta Salon (ULT) raised its outlook for the year after the beauty products retailer delivered a beat on both its top and bottom lines for the second quarter. Revenue jumped 22% from a year ago, marking its seventh straight quarter of double-digit sales growth. However, investors locked in some profits, with the stock trading lower in early trading after being up as nearly 50% so far this year.
Amazon expands brick-and-mortar stores
Amazon (AMZN), the e-commerce giant that made life a nightmare for bookstores, is opening more *brick-and-mortar* bookstores. Amazon is telling the FT it plans to open physical stores in Chicago, San Diego and Portland, Oregon. The company opened its first bookstore in Seattle last fall. That store sells books and gadgets like Amazon’s Kindle e-reader.
Sharing your data
The messaging service WhatsApp is getting some unhappy messages from users today. This follows word yesterday that the company will start sharing customer phone numbers with Facebook (FB). WhatsApp rolled out encrypted technology earlier this year to protect user privacy.
The Ryan Lochte drama continues
There’s good news and bad news today for American swimmer Ryan Lochte. The bad: Brazilian police have charged him with filing a false robbery report. The good: Lochte picked up a new endorsement deal after losing all of his major sponsors. His new backer is Pine Brothers Softish Throat Drops. The company says its product is quote “forgiving” on your throat.
