Stocks Slammed by Rocky Start to Earnings Season
In the latest earnings news, shares of Costco Wholesale (COST) rose 1.8% after the warehouse retailer said its fiscal fourth-quarter net income rose 27% from last year and handily beat Wall Street's expectations.
Yum! Brands (YUM), the restaurant operator whose brands include Pizza Hut, Taco Bell and KFC, lifted its outlook for the full year to adjusted earnings of at least $3.24 a share after beating analysts' expectations in the third quarter. The stock surged 8%.
In other corporate news, Japanese automaker Toyota (TM) will recall 7.43 million vehicles globally including in the U.S., Japan and Europe for a faulty power-window switch. Toyota ADRs were down 2.1%.
H&R Block (HRB) shares tumbled 5.4% after the tax preparation and banking services company said it may sell its bank division in reaction to changes stipulated by the Dodd-Frank regulations.FedEx (FDX) set a goal to improve profits by $1.7 billion over the next three years, largely by cutting costs at its underperforming express air division. Shares gained 5.2%. Engine maker Cummins ( CMI ) reduced its full-year revenue estimate and said that it plans to slash its headcount by as much as 1,500 by the end of the year amid growing global economic uncertainties. The stock was off 3.4%. Specialty materials and chemicals producer Ferro ( FOE ) slashed its third-quarter earnings outlook because of its weakening solar pastes and metal powders business. Shares plunged 24%.
2012 Stock Predictions and Outlook
|Your one-stop shop for 2012 stock recommendations and market predictions.
>To contact the writer of this article, click here: Andrea Tse. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV