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ADP Payroll Report; What to Watch in Facebook & Starbucks Earnings; Push for a Fed Taper

Dan Berman
Hot Stock Minute
ADP Payroll Report; What to Watch in Facebook & Starbucks Earnings; Push for a Fed Taper

General Motors (GM) is among the companies out with earnings this morning. The automaker beat on the bottom line reporting earnings of 96-cents a share, 2-cents better than expectations. Revenues, however, were shy of the consensus at $39-billion even. Comcast (CMCSA) also beat on the bottom line, earning 65-cents a share, a nickel better than estimates, though sales here were also short of expectations. And Sodastream (SODA) has been down more than 12% on these numbers: a 4-cent beat on earnings but a miss on revenues.

Facebook (FB) reports after the closing bell. Shares have been up in early trading, flirting with that $50 a share mark. The stock's had quite a climb since the company's last report, up 31% in the past three months. So, what should traders be looking for in today's report? Yahoo Finance columnist Rick Newman has more in the video above.

By the way, one additional note about Facebook: The Wall Street Journal reports the company took a meeting with BlackBerry (BBRY) execs last week to discuss a possible bid for the phone maker. And speaking of struggling phone makers, Nokia (NOK) has sold a record number of its Lumia handsets: 8.8-million in the last quarter. Keep in mind Microsoft (MSFT) is in the process of acquiring Nokia's phone unit. Shares of Nokia are up more than 10% in the premarket, adding to gains of 81% since the start of the year.

Now some breaking news: the consumer price index for September released right as we started streaming live to you at 8:30. The Labor Department says the index rose .2% for the month matching expectations. Also out just a little while ago, the ADP employment report for October. Consensus here was for 125-thousand new jobs. The actual number was 130,000. The Labor Deportment's jobs report would ordinarily be released this coming Friday. But it's being delayed a week because of the government shutdown.

JPMorgan (JPM) may have hit a glitch in its efforts for an umbrella settlement with the government. The Wall Street Journal reports a draft agreement submitted by the bank on Sunday contains a key sticking point: an effort by JPMorgan to have the FDIC bear responsibility for losses stemming from Washington Mutual's mortgage-backed securities. Sources tell the Journal the new document also contains protection for JPMorgan from criminal prosecution. Attorney General Eric Holder is reportedly unwilling to accept that provision.


Starbucks (SBUX) reports after the closing bell. We should note the stock is up 45% year-to-date and hit a new all-time high just last week. As for today's report, analysts are looking for earnings of 60-cents a share, up from 46-cents a year ago on sales that have climbed 13% to $3.81-billion. Same-store-sales around the world are expected to climb 5% to 7%, bucking a trend of sagging sales among other food chains. Over the past three months the company has raised prices, revamped its food menu and started expanding its Teavana chain.

Networking social network LinkedIn (LNKD) reported earnings after yesterday's closing bell and has since been down more than 3%. The company easily beat estimates for the quarter with earnings of 39-cents a share on $393-million in revenue. However, its guidance for the current quarter and the year were both disappointing. If you don't count this morning's move lower, LinkedIn shares are up 119% year-to-date. That's even better than Facebook's celebrated 76% climb. A reminder Facebook reports this afternoon.

Expedia (EXPE) reports after the closing bell. It's expected to reveal gains over last year, with earnings of $1.35 a share on revenues of $1.37-billion. Expedia has been a low flier this year, down 20%. Compare that to competitor Priceline which has seen its shares climb 68% to nearly $1,070 a share.

Finally we want to look at three big movers on the NASDAQ, all of which came out with their earnings yesterday afternoon. Dreamworks (DWA) has been up more than 8% after beating street expectations; Shutterfly (SFLY) dropped more than 10%. Losses there were narrower than expected at 24-cents a share; Buffalo Wild Wings (BWLD) has been up more than 11% topping expectations with its report. Both sales and profits are up as the company expands. The business says it has also been benefiting from falling chicken prices. Even before this morning's gains, shares were up 77% year-to-date. They're now at an all-time high.