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Dow In Danger of Drop Below 16,000; Apple’s Acquisition; Krispy Kreme’s Big Hole

Dan Berman
Hot Stock Minute
Dow In Danger of Drop Below 16,000; Apple’s Acquisition; Krispy Kreme’s Big Hole

The Dow is in danger of dropping back below the 16,000 mark. The index ended yesterday's regular trading session at 16,008 points, and futures have been pointed lower. What's behind the pullback, and how low might we go? Hot Stock Minute host Lauren Lyster talks about the situation with Yahoo Finance Senior Columnist Mike Santoli.

There's a lot of slicing and dicing this morning about Apple's (AAPL) latest acquisition. The tech giant confirms it has purchased Topsy. That's a company which analyzes tweets in an effort to identify business trends. No official word on the purchase price, but sources tell the New York Times, Apple paid $200-million. Apple dropped yesterday on news that hedge fund manager Jeffrey Gundlach said the current price seemed quote "reasonable" at $525. The stock is currently above $550. Shares remain down 6% over the past year.

Google (GOOG) is getting further into cloud computing. The New York Times reports that the search engine giant will announce today new prices and features in its cloud storage aimed at both multi-nationals and start-ups. While Google already hosts some companies like Snapchat - the social network that just turned down a multi-billion dollar offer from Facebook (FB) - today's announcement is seen as a push to compete with other companies, like Microsoft (MSFT), Amazon (AMZN) and IBM (IBM) who are already dominating in corporate cloud storage. Google's shares are up 46% this year. They hit an all-time high the day before Thanksgiving.

Hilton has revealed more details of its intended stay on the NYSE. The hotel chain disclosed in a filing that it plans to offer shares between $18 and $21. The hope is to raise more than $1.2-billion to help pay off debt. Hilton has nearly 4,100 hotels. It went private back in 2007 when it was bought by The Blackstone Group. The company will be trading under the symbol HLT. By the way another IPO to tell you about: The AMC movie chain is going public under the symbol AMC. The company is currently controlled by China's richest man.


Amazon (AMZN) which is currently down in early trading. Jeff Bezos and company are currently counting receipts from yesterday's Cyber Monday bonanza. Reports from third parties indicate Amazon was a cyber Monday winner. They may have benefitted from the buzz surrounding delivery drones. Not yet a reality-- and perhaps something that will never happen. but a great piece of PR unveiled ahead of the Cyber Monday event. Amazon stock goes into today's regular trading session up 52% so far this year.

Krispy Kreme (KKD) has been down more than 14% since reporting earnings yesterday afternoon. The Doughnut chain hays it made adjusted earnings of 16-cents a share, a penny above estimates. Sales were pretty much in line with expectations So why is the stock getting fried? The company is lowering its guidance for the coming year despite aggressive expansion. Excluding this morning's drop shares of Krispy Kreme are up 152% year-to-date.

Tesla (TSLA) is up 6% in early trading. The stock has recently been under pressure because of several fires involving the Model S sedan, but investigators in Germany have concluded the car is in fact safe. Shares of Tesla have been down 27% over the last three months, in the wake of bad press from the fires. Shares are still up 251% in 2013.

Bob Evans Farms (BOBE) reports after the closing bell. Analysts are looking for profits of 55-cents a share, up 2-cents from a year ago, though on sales that have dropped more than 17%. That stems in part from the shuttering of many restaurants. The chain has also been remodeling many of its locations. At the same time it's trying to exercise cost controls because of higher pork prices. Bob Evans stock goes into today's session up 32% year-to-date.