Stocks in the news: Costco, Toll Brothers, Google

Costco Wholesale (COST) said its fiscal second-quarter net income dropped 27 percent due to an overall weak economy and deeper discounting, while the stronger dollar and falling gas prices took a toll on same-store sales, which dropped 3 percent. Costco earned 55 cents per share, as revenue dipped 1 percent to $16.84 billion. Analysts surveyed by Thomson Reuters forecast profit of 59 cents per share on revenue of $16.85 billion.

Toll Brothers (TOL), the luxury homebuilder, reported a narrower loss despite plummeting revenue, yet still the loss was slightly worse than estimates. Toll lost $89 million, or 55 cents per share, as revenue declined 51 percent to $409 million. Despite the company managing to cut costs and expenses, results were below estimates of a loss of 52 cents per share on revenue of $425.3 million.