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Gold Falls Further as Q2 Closes; BlackBerry Plunges 24% on Earnings; Deen’s Bright Spot

Dan Berman
Hot Stock Minute
Gold Falls Further as Q2 Closes; BlackBerry Plunges 24% on Earnings; Deen’s Bright Spot

BlackBerry (BBRY) is down more than 20% in the pre-market. The sudden plunge comes as the company reports dismal quarterly results. BlackBerry says it lost 13-cents a share for the period when expectations were for a profit of 6-cents. Revenues were also below the consensus at $3.1 billion versus $3.362 billion.

Meanwhile, gold is sinking further, now poised to post one of its worst months ever. It has lost 15% in value over just the past week. Yahoo! Finance Senior Columnist Mike Santoli has more in the video above.

Don't bank on Janet Yellin to head the Fed just yet. The Wall Street Journal reports there is no frontrunner in the search to replace current chair Ben Bernanke. The paper says the search process is still in the early stages. Right now that includes compiling a short list of candidates-- among them Yellin, the vice chairwoman. The paper says President Obama may still ask Bernanke to serve a third time, despite recent comments which suggest otherwise. By the way, more Fed Presidents are set to speak today in an effort to calm markets.

Paula Deen remains in demand. The chef-in-hot-water currently has the top two bestsellers on Amazon (AMZN). It's perhaps the one bright spot for the falling star who was also dropped by Target yesterday. Deen was also cut off by WalMart (WMT) and Home Depot (HD) on Wednesday after appearing on the Today show to talk about prior racist remarks. Drug-maker Novo Nordisk is also suspending its contract with Deen who did ads for a diabetes medication. By the way, our poll question yesterday was whether Paula Deen is done. Just about 20-percent of you thought her career is over. The majority of voters thought she's likely to make a comeback.


We begin with another look at BlackBerry which as we told you earlier has been down more than 20% this morning after coming out with earnings. Here's why: the company lost 13-cents a share for the quarter when estimates were for a profit of 6-cents. Revenue was about $3.1 billion, significantly lower than the consensus of $3.36 billion. Phone shipments were up 13% from the prior quarter to 6.8 million but that was less than expected. Service revenues were down a surprising 20%. We should note the loss of 13-cents a share is still a vast improvement over the prior quarter when they were 37-cents a share. Prior to this morning, shares of BlackBerry are up 23% this year, so they're just about erasing all gains.

Next is Nike (NKE), which says unchanged here but has been trading more than 2%. The company posted quarterly earnings of 76-cents a share after yesterday's closing bell. That beat expectations by 2-cents and also reflects higher than expected revenue. It's also a 22% jump over last year. So why is the stock getting tripped-up? The company warns of a decrease in sales from China. At the same time it looks like gross margins will be flat. Shares of Nike are up 20% so far this year, largely on a spike around the time of its last report. They hit an all-time high in May of more than $66 a share.

Now we look at a company with close ties to Nike: Finish Line (FINL), which is reporting earnings this morning. The company beat when you exclude items posting earnings of 20-cents a share when expectations were for 16-cents. Revenues also topped forecasts. Sales were up 10% from a year ago. Finish Line is citing improved sales in running items and continued strength in basketball ones. Shares of Finish Line hit their 52-week high back in September. They're currently up about 13% over the past year.

Finally, there's Accenture (ACN) which has been down nearly 7% after reporting earnings yesterday. The company says it made $1.14 a share beating estimates by a penny, but it came up short on revenue. Up until now, the stock had risen 16% year-to-date. It has been up 41% over the last year, and like so many other stocks hit a high on May 22nd.