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Groupon & Tesla Take Off; Weekly Jobless Claims; JPMorgan Chase Case

Dan Berman
Hot Stock Minute
Groupon & Tesla Take Off; Weekly Jobless Claims; JPMorgan Chase Case

Two controversial companies, two remarkable rises. Both Groupon (GRPN) and Tesla (TSLA) have taken-off on their quarterly earnings. Groupon shares have been up more than 25% for much of the morning. Tesla's shares have been up more than 13%, hitting a new high above $150 a share. Tesla stunned the street, turning a profit of 5-cents a share, when expectations were for a loss of 17-cents. As for Groupon, it matched estimates, posting earnings of 2-cents a share and narrowly beating on revenues. Not such a surprise. So why is the stock skyrocketing? Yahoo! Finance Senior Columnist Mike Santoli has more in the video above.

Weekly jobless claims were released right as we started streaming live to you at 8:30. The Labor Department says there were 333,000 new claims last week. Expectations had been for about 337,000 new claims. Keep in mind, the number released last week was the lowest in almost 6-years; it came in at 326,000. Still, the government's larger monthly jobs report for July was widely considered a disappointment with just 165,000 news jobs created.

There's trouble on the home front for JPMorgan (JPM). The company has revealed the Justice Department is investigating its sale of mortgage-backed securities ahead of the financial crisis. JPM says it faces both criminal and civil suits, and that it was first informed of the issue back in May. On Tuesday, the Feds charged Bank of America with defrauding investors through its sale of mortgage back securities.

Hilton may be headed to market. The Wall Street Journal reports the hotel chain is being primed for an IPO. The paper says four banks have been hired to oversee a sale of shares. Hilton was bought by Blackstone Group in 2007. The deal was the hotel industry's biggest-ever private equity buyout.


Green Mountain Coffee Roasters (GMCR) is unexpectedly cooling on its earnings, with shares down more than 6% in early trading. Green Mountain beat estimates on the bottom line by 5-cents a share when it reported yesterday afternoon. The perceived problem may be a miss on revenue which came in at $967-million when expectations were for $981-million. Profits actually jumped 59%, thanks to stronger sales in the U.S. and lower coffee bean costs. The company also issued a better-than-expected outlook for the current quarter and the full year. Maybe the drop we're seeing is simple profit taking. Shares of Green Mountain are up 82% year-to-date. They're up 222% over the past year.

T-Mobile (TMUS) which released earnings this morning. The company says profits fell but sales rose thanks to a new marketing offensive. Earlier this year, T-Mobile eliminated phone subsidies and set up pay-as-you-go plans, something which helped the company add 1.1 million costumers in the quarter. Looking at how the T-Mobile has been trading, you can see a deep dip in early May when the company merged into MetroPCS from Deutsche Telekom, but shares are up 24% year-to-date.

Priceline (PCLN) reports after today's closing bell. The company is expected to post earnings of $9.36 a share, up from $7.85 a year ago. Revenue is supposed to climb 25% to 1.66-billion dollars. The rise in figures is due largely to Priceline's acquisition of competitor Kayak dot com. The company has also been experiencing robust growth internationally. Shares of Priceline are up 45% year-to-date and hit an all-time high on Tuesday.

Monster Beverage (MNST) also reports after the closing bell. Monster is expected to post earnings of 64-cents a share, up a nickel from a year ago. Revenue is expected to rise around 10% to $646-million. That would be a reversal from last quarter when Monster reported a decrease in both earnings and revenue. Those declines came as the company faced questions about the safety of its caffeinated drinks. Shares of Monster are now up about 15% since the start of the year, giving the company a market cap of more than $10-billion.