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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, Amazon.com (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.
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