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Amazon warns, Starbucks sales perk up

Thursday, July 25, 2013 - 02:12

July 25 - Amazon reports loss, warns; Starbucks profits up; stocks edge higher after mixed day, SAC Capital faces insider trading charges. Bobbi Rebell reports.

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After hours investors sent Amazon stock down the river, after the world's largest internet retailer reported a second quarter net loss- and warned third quarter results would also fall short. But Starbucks profits perked up. U.S. sales were unexpectedly strong. The coffee giant also boosted its full year guidance. Markets eeked out higher finishes after a mixed day. The Nasdaq boosted by Facebook- soaring a day after it reported a surge in mobile advertising revenue. Also on the plus side- a better than expected report on durable goods. That overshadowed news that weekly jobless claims rose slightly. In Europe, a down day after profit warnings from German heavyweights BASF and Siemens weighed on the markets. General Motors stock stalled out despite better-than- expected profits thanks to strong U.S. demand. While the automaker was also able to cut costs in Europe, its international operations which includes China, reported a 64 percent drop in profits. Other earnings news: Dow Chemical profits beat forecasts thanks to strong profits at its plastics business and higher pesticide sales. Home builder Pulte Group missed profit estimates- expenses were higher and the number of homes booked fell 12 percent. Homebuilders do not book revenue until they finish a house. Colgate-Palmolive's profits got hit by the stronger dollar- that put pressure on its international business, and was blamed for their profit miss. Billionaire hedge fund manager Steve Cohen's firm SAC Capital Advisors was charged with insider trading. The criminal charges against the $15 billion dollar hedge fund could end his career managing outside money. US Attorney General, Southern New York District, Preet Bharara: SOUNDBITE: PREET BHARARA, U.S ATTORNEY GENERAL, SOUTHERN NEW YORK DISTRICT (ENGLISH) SAYING: "Today's indictment is not just a narrative of names and numbers, it is more broadly an account of a firm with zero tolerance for low returns but seemingly tremendous tolerance for questionable conduct. And so, SAC became over time a veritable magnet for market cheaters." Cohen himself is facing civil charges of failing to supervise employees accused of insider trading.

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Amazon warns, Starbucks sales perk up

Thursday, July 25, 2013 - 02:12