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Jobless Claims Hit 5-Year Low; Einhorn’s Advice for You; Facebook Acquisition?

Dan Berman
Hot Stock Minute
Jobless Claims Hit 5-Year Low; Einhorn’s Advice for You; Facebook Acquisition?

History is repeating itself this morning with both the Dow and S&P ready to open at record levels. Both indexes closed again yesterday at all-time highs, with the S-and-P posting its fifth straight record to close at 1632.69. The Dow is now well into the 15,000s at 15,105.12.

One thing that could move markets today: weekly jobless claims, which were released right as we streamed live. The Labor Department says they came in at 323,000, a new 5-year low, down 1,000 claims from the prior week.

Facebook (FB) may be about to make another $1-billion acquisition. There are reports out of Israel that the company is in advanced talks to buy Waze. That's an Israeli traffic and navigation mobile app. The report says the companies have already signed a term sheet. Facebook previously bought Instagram for $1-billion.

There's new evidence a less expensive iPhone is in the works. Apple (AAPL) supplier Pegatron says it will soon be increasing its workforce in China by 40%. Several suppliers have previously said Apple is developing a cheaper smartphone for growth markets like China and India. The company stock has been on a quite a climb. It's won back $70 a share since hitting bottom on April 21st. By the way, in a related story Nokia (NOK) unveiled a new smartphone today, also targeted at emerging markets. It will run on 2-G networks and sell for $99.

A warning not to listen to David Einhorn. It comes from the activist investor himself. At the Sohn Conference here in New York Einhorn said, "It doesn't make sense to blindly follow me or anyone else into a stock. Do your own work." Coincidentally, or perhaps brilliantly, our poll question yesterday was, "How much attention do you pay to activist investors?" Our audience seemed to have gotten Einhorn's message even before he gave it. An overwhelming 60% of you said "not much at all."


Green Mountain Coffee Roasters (GMCR) is piquing interest, up 16% on its earnings. The company reported after the closing bell, saying it made 93-cents a share excluding items, when estimates were for 74-cents. This is despite the fact is missed slightly on revenue. Green Mountain says more perks are on the way; in a surprise move it has just bolstered a partnership with Starbucks to offer more varieties of K-cups. Even before the jump we're seeing now, Green Mountain shares were up 37% year to date.

Next is Tesla (TSLA), which has electrified traders with its earnings. Shares are up 22% since the company reported after the closing bell. Tesla told us ahead of time, they'd be posting a profit for the first time ever. But a new leasing program has juiced interest in the "Model S" sedan beyond expectations. The company made 12-cents a share compared to estimates of 4-cents. Revenue was also more than 10% above predictions. Tesla shares have had astounding momentum over the past month, up 38% even before those earnings came out last night.

Groupon (GRPN) has also been up sharply on its earnings, now 14% higher. Excluding items, the company met expectations for 3-cents a share and beat on revenue. Both were an improvement from a year ago. The report was the first one since company founder Andrew Mason was ousted as CEO back in February, which gives us an excuse to cite his resignation letter again. It said, "I’ve decided that I’d like to spend more time with my family. Just kidding – I was fired today." Until now the stock has been pretty quiet, climbing just 3% over the past 3-months.

Finally, there's Dish (DISH) network which came out with disappointing earnings this morning. It's now down 3%. Dish missed on both the top and bottom lines. Profit was actually down 40% from a year ago. Part of the problem was a decrease in new subscriptions. Dish stock is up 31% over the past year.