This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: Placing Bets on QE3

Other companies reporting Friday include Advanced Semiconductor (ASX), Arch Coal (ACI), Barclays Bank (BCS), Belo (BLC), Calpine (CPN), Celestica (CLS), KKR & Co. (KKR), Legg Mason (LM), McClatchy (MNI), Newell Rubbermaid (NWL), Newmont Mining (NEM), Pilgrim's Pride (PPC) and Weyerhaeuser (WY).

Friday's economic calendar brings second-quarter gross domestic product at 8:30 a.m. ET and the final University of Michigan read on consumer sentiment for July at 9:55 a.m. ET.

The consensus estimate is for GDP growth of 1.2% in the second quarter, down from 1.9% in the first quarter. Jim Sullivan, chief U.S. economist at High Frequency Economics, sees the number coming in at 1.5% and is looking for a revision of the first-quarter growth higher.

And finally, Starbucks (SBUX - Get Report) took a hit in late trades as well after the coffee company missed Wall Street expectations with its fiscal third-quarter results and gave weak guidance.

The company reported a profit of $333.1 million, or 43 cents a share, in the three months ended in June on revenue of $3.30 billion, falling short of the average estimate of analysts polled by Thomson Reuters for earnings of 45 cents a share on revenue of $3.33 billion.

Seattle-based Starbucks also forecast fourth-quarter earnings of 44 to 45 cents a share and said it expects earnings of $2.04 to $2.14 a share in fiscal 2013. Both those ranges are below the respective consensus estimates for per-share earnings of 48 cents and $2.28. The stock was last quoted at $47.19, down 10%, on extended volume of 3.4 million.

Surprisingly, (AMZN - Get Report) was holding its own after a ho-hum quarter where the online retailing behemoth scratched out a profit of $7 million, or a penny per share, on revenue of $12.83 billion. The latest results included a net loss of $65 million related to the acquisition and integration of Kiva Systems.

That performance compares to the average estimate of analysts polled by Thomson Reuters for a profit of 2 cents a share in the June-ended quarter on revenue of $12.88 billion and earnings of $191 million, or 41 cents a share, in the same period a year earlier.

The outlook was also rather dim as Amazon forecast an operating loss of between $50 million and $350 million and revenue ranging from $12.9 billion to $14.3 billion for the third quarter. Wall Street's current consensus estimate is for earnings of 14 cents a share in the current quarter on revenue of $14.09 billion. The stock was up less than 1% in late trades.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $657.95 9.30%
DHI $29.77 -1.90%
FB $116.06 -0.57%
SBUX $55.85 -1.00%
AAPL $93.36 -1.60%


Chart of I:DJI
DOW 17,691.74 -139.02 -0.78%
S&P 500 2,054.89 -20.92 -1.01%
NASDAQ 4,749.08 -56.2110 -1.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs