A visionary of the internet is going the paper route. Jeff Bezos is buying the Washington Post (WPO). The founder and CEO of Amazon (AMZN) will be paying $250-million out of his own pocket for the paper. Is this part of a larger shift in newspaper ownership? Yahoo! Finance Senior Columnist Mike Santoli has more int he video above.
We're learning earnings from more big-name companies. Already reporting this morning CVS Caremark (CVS); the drug store giant missed estimates by a nickel posting profits of 91-cents a share. Revenue was slightly above the consensus. Meanwhile, agriculture giant Archer Daniels Midland (ADM) beat on the bottom line by 2-cents but missed a little on revenues. Dish Network (DISH) may be the surprise of the day posting losses of 2-cents a share when analysts were looking for profits of 50-cents. The company took a $438-million charge related to satellite acquisitions. It also saw a decline in subscriptions.
Sony (SNE) is shooting down the idea of splitting itself in two. Activist investor Daniel Loeb has been calling for the Japanese giant to spin off its entertainment division. But today the company rejected the proposal. It says the current structure allows for synergies with its electronics unit. Loeb, for his part, is vowing to keep putting pressure on Sony for change. Sony shares are down 4% this morning, but they've been up 89% year-to-date.
GM's (GM) charging ahead with a plan to improve sales of the Chevy Volt. The automaker is dropping the price on its lowest cost Volt by $5,000 dollars to $35,000. After tax incentives somebody could conceivably buy one for less than $28,000. Or lease one for $299 a month. The move is part of Chevy's plan to compete against the likes of Tesla (TSLA). By the way, shares of Tesla were up another 4.8% yesterday, hitting a new all-time high above $144 a share, and up 309% year-to-date.
STOCKS TO WATCH
American Eagle Outfitters (AEO) has been down as much as 17% in early trading. The retailer issued a warning yesterday that its quarterly profit will probably be less than half of what The Street was expecting. The company blames the trouble on a weak labor market that has left many teens jobless, and without money to spend. It also cites an environment of deep discounts. Prior to the drop we're seeing at this hour, shares were basically flat in 2013, down less than 1%.
Another big presence at the mall, Fossil (FOSL), is up 12% following a rock solid earnings report. The company posted profits of $1.15 a share when estimates were for 93-cents, which was the figure a year ago. Revenue also exceeded expectations. Shares dropped 6% yesterday on a downgrade to underweight from equal weight. Barclays analyst Matthew McClintock said sales for the chain are slowing, and lowered his price target $15 to $100 a share. Wonder where he is now? As of yesterday's close, Fossil shares were up 14% year-to-date.
Disney (DIS) reports quarterly earnings after the closing bell. The world's largest entertainment company is expected to post profits of $1.01 a share, the same as last year, but on revenue that's risen to $11.64-billion. Watch for mention of The Lone Ranger movie which was a bona fide flop for the company. Also key will be ratings and ad rates for the family of ESPN networks. Disney stock his an all-time high of almost $68 back in May, a month before The Lone Ranger's release. It's currently up 29% year-to-date.
Zillow (Z) reports after the closing bell. Shares rose 4% yesterday on word that tomorrow President Obama will take part in an event hosted by the company, answering questions from ordinary people about housing. By the way Yahoo has been picked to stream that event live. The stock in fact hit an all-time high yesterday, and is now up 218% year-to-date. Never mind that the company is expected to post a quarterly loss of 11-cents a share, following profits of 8-cents a share a year ago. Revenue is estimated to be up more than 60%.