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JPMorgan’s Tentative Settlement; McDonald’s Earnings; Starbucks in Hot Water

Dan Berman
Hot Stock Minute
JPMorgan’s Tentative Settlement; McDonald’s Earnings; Starbucks in Hot Water

McDonald's (MCD) has beaten estimates with its quarterly earnings but the world's largest burger chain is not exactly cooking. The company made $1.52 a share, which was a penny better than estimates. But revenues missed expectations at $7.323-billion versus $7.336-billion. Yahoo Finance Senior Columnist Mike Santoli has more in the video above.

Halliburton (HAL) and Hasbro (HAS) have also come out with their earnings this morning. Halliburton had earnings of 79-cents a share and adjusted earnings of 83-cents. Estimates had been for 82-cents. Revenue was also slightly below consensus at $7.47-billion compared to $7.5-billion. As for Hasbro, it earned $1.31 a share, which was two cents better than estimates. Revenue was also slightly above expectations at $1.37-billion versus $1.34-billion.

More details are emerging on JPMorgan's (JPM) tentative $13-billion dollar deal with the Feds. The New York Times is reporting the deal began to take shape on September 24th. JPMorgan CEO Jamie Dimon called Attorney General Eric Holder's office just hours before the Justice Department was going to announce a civil case against the bank. The Wall Street Journal says Holder's office was threatening again last Thursday to file its civil case this coming Wednesday unless there was a deal before then. As for the settlement amount, it would be the largest in history. However, it won't rule out the possibility of future criminal charges against the company. And the deal may still fall apart over how much wrongdoing the bank is willing to admit. As we head into trading this morning, JPMorgan stock is up 22% year-to-date.

You've heard of cell division, but what about cell subtraction? AT&T (T) is relinquishing control of nearly 10,000 cell towers. The company has inked a $4.85-billion dollar deal with Crown Castle International (CCI). Most of the towers will be leased, but about 600 are actually be sold to Crown Castle. AT&T stock has been down 1% year-to-date. Crown Castle hasn't done much better, up 1%.

Starbucks (SBUX) suddenly finds itself in hot water overseas. The coffee giant is being accused of jacking up prices at coffee houses in China. State-run television says a latte in Beijing costs a-third more than it would in Chicago. It should be noted, the network has a history of targeting American companies like Apple. As for Starbucks, its stock is up 44% year-to-date, and is just about a dime below its all-time high in premarket trading.


Netflix (NFLX) reports earnings after the closing bell. The stock is up 262% year-to-date and 391% over the past year. The company is expected to post profits of 49-cents a share. That would be nearly quadruple the figure from a year ago on revenue that has likely hit $1.1 billion. Netflix is also expected to reveal that it now has more than 30-million subscribers. That would be more than HBO. The company is now trying to get onto cable systems where it would compete alongside HBO and other premium channels.

Google (GOOG) is poised to open above $1,000 a share for the first time. The stock rose 13.8% on Friday to close at an all-time high of $1,011 a share. The spike gives Google a market cap of $336-billion dollars, third behind only Apple and Exxon Mobile. The climb came after the company reported earnings, beating estimates and demonstrating that it is successfully navigating the massive shift to mobile. Going into this morning's session, Google stock is up 49% year-to-date. By the way our poll question on Friday was whether now's a good time to buy or sell Google. The majority of you said sell.

Texas Instruments (TXN) is another company reporting after the closing bell. Analysts are looking for earnings of 53-cents a share, up a penny from a year ago on revenue that's dipped a little to 3.23-billion. Shares of Texas Instruments are up 26% so far this year.

Wynn Resorts (WYNN) also reports this afternoon Expectations here are for earnings of $1.65 a share up considerably from a year ago on revenue that's climbed to $1.6-billion. Shares of Wynn hit an all-time high on Friday above $170 a share. They're up 45% year-to-date which is in line with other casino stocks like Las Vegas Sands which has climbed 48% also to a multi-year high.