Home Depot (HD) announced that it earned $1.53 billion, or $1.01 per share, in its second fiscal quarter that ended on July 29, up from $1.36 billion, $0.86 per share in the same period last year. Analysts had expected earnings of of 97 cents per share.
This is your Mid-day Market Update for August 13. Stocks falling into the red Monday with investors finding no reason to bid shares higher on a lack of U.S. economic data.The big reason for the dip in stocks can be blamed on Japan. Wall Street looking overseas today to gauge growth in the global markets. Japan’s gross domestic product expanded just 0.3% in the April-June period, half of what was being expected. Stocks fell on this negative outlook even after the gains this past week over hopes of European stimulus. Oil and Gold trading down so far today Oil is down just under $93 a barrel but has gained since July, when the price was at $78 a barrel. Gold is down just $1 on the day to $1,622 an ounce.A big winner so far in today’s session is Tesoro. Its stock is up over 9% due to a spike in oil prices over the past month. One of the biggest losers is Harbinger Group. Its shares are down over 8% after the recent purchase of one million shares of Spectrum Brands.Currently, the Dow is down over 90 points to 13,117. The S&P is lower by over 7 points and the Nasdaq is has lost over 15 points so far today.For more market updates and analysis of the business world follow us on twitter @FNNOnline or check out our website at fnno.com
One of the most successful businessmen in the computer industry is having some problems today. Not business problems though, family problems.CEO of Dell Computers Michael Dell spends close to $2.7 million a year on a security for is family and his daughter has systematically thrown that money down the drain. How did she do it? Through twitter.Alexa Dell decided to take to the micro-blogging site and dish on her family’s life, including where they lived, as well as her exact location when traveling to New York and on vacation in Fiji. Both her posts and twitter have been deleted by Dell’s security team and it seems the damage has been mitigated, at least for now.Good thing too. Michael Dell’s net worth is reportedly $15.9 billion. Since taking the company public in 1988, he’s landed the 41st spot on Forbes Magazine’s Billionaire’s List.
The United States’ largest airline is taking its base of operations to the nation’s tallest building. It was announced Monday that United Airlines will be moving its headquarters to Chicago’s Willis Tower. The airline giant signed a lease with Willis Tower that would last through 2028. Current plans to move its headquarters would see United taking over 16 floors, about 25% of the entire building. United’s Network Operations Center is already located within Willis Tower. Once the move is completed, 4,000 United Employees would be working in the general area, with 14,000 total employees working in the city and nearby areas. Willis Tower is currently the tallest building in the United States, but will soon be dethroned by New York’s new World Trade Center tower.
From Fnno.com, you’re watching the Financial News Network. Coach (NYSE:COH) reported fiscal fourth quarter earnings this morning, posting an EPS of $0.86, topping estimates by one cent. Revenues in the quarter rose 13% to $1.16 billion, missing estimates of $1.2 billion.The company says the lower-than-expected revenue is due to lower sales in the U.S. Overseas sales, especially in China, is what led the company to a higher profit.For the full year, Coach’s earnings were $1 billion or $3.53 a share. This was higher than the previous year of just $2.92 a share. The lower sales in the U.S. have scared investors this morning. The company’s stock is down over 17% to $50.23. For more financial news and analysis, follow us on Twitter @FNNOnline, or check out our website at fnno.com
Supermarket chain Supervalu Inc. has ousted its CEO, the company said in a statement today. Craig Herkert has been been replaced as CEO in favor of the company’s chairman, Wayne Sales. Herkert was formerly Walmart’s president and CEO of the Americas from 2004 to 2009. Wayne Sales, previously the CEO of Canadian Tire Corp Ltd, has stated that his first order of business will be to reduce costs for the company. Despite being appointed to both president and chief executive, Sales will continue to serve as chairman as well.Supervalu is the third largest supermarket chain in the United States. The chain recently reported a decline in earnings of 45% in the last quarter and was considering a sale of part or the entirety of the company. For more on this story and analysis of the business world follow us on twitter @FNNOnline.
Video game giant Electronic Arts is already in talks to support Microsoft’s new Windows 8 mobile operating system. EA hopes to bring games like Medal of Honor, The Sims, and World Series of Poker to devices that support Microsoft’s OS, including its new Surface tablet.This move comes as video game publishers want to focus less on physical copies of games and more on digital distribution. EA has said that the new platform will be central to its longterm strategies. The company is currently in talks with Microsoft about what gaming should be on the new platform.The Windows 8 mobile operating system will be released later this year.
Yahoo (NASDAQ:YHOO) will be one to watch this morning with the release of its earnings and the integration of its new CEO. Yesterday, the internet company posted second quarter earnings per share of $0.18, that’s below analyst estimates of $0.20 a share. Revenue for the quarter fell 1% to $1.08 billion, just below analyst estimates of $1.10 billion. Income fell 4% from the prior year as well to $227 million.Although not great earnings, investors are now looking to see what the new CEO Marissa Mayer will do to reinvigorate the company. Yahoo struggled through two different CEO’s last quarter, Scott Thompson and then interim CEO Ross Levinsohn so both the Yahoo’s board and investors are looking for a change. The biggest challenge Mayer will face: finding a way to compete with rivals such as Google and Facebook.
In even more bad news for the U.S. Postal Service, the struggling agency announced today that it lost $5.2 billion in the third quarter of fiscal 2012. This brings the Postal Service’s total 2012 losses up to $11.6 billion, compared to $5.7 billion a year ago. The agency announced these numbers as it continued to ask Congress for postal reform legislation. The Senate passed a postal bill in April, but many don’t expect the House to consider such a bill until November’s elections. The Postal Service did attain growth of 9.9 percent in revenues from shipping packages, reaching $3.3 billion. However, that growth was not nearly enough to staunch the losses flowing from the agency. For more on the latest business news, follow us on Twitter @FNNOnline, or check out our website at fnno.com
Concerns over weakness in Japan’s economy and a possible slowdown in China kept the markets under pressure today. Google (GOOG) announced plans to lay off about 4,000 workers at Motorola Mobility.
