Market Minute: Costco Earnings Miss Forecasts; Yum Continues to Struggle
The Dow Jones industrial average (^DJI) lost another 159 points Tuesday, the Standard & Poor's 500 index (^GPSC) fell 20 and the Nasdaq composite index (^IXIC) slid 75 points. Since the partial government shutdown began at the start of this month, the Dow has tumbled by 482 points. Right now, it is fear about the upcoming debt ceiling deadline that's causing the most concern.
Costco (COST) reports increased store sales and revenue from membership fees, but the discount retailer's net edged just barely higher. It fell short of Wall Street expectations.
Restaurant operator Yum Brands (YUM) reported another disappointing profit. The company -- which owns KFC, Pizza Hut and Taco Bell -- continues to suffer from Chinese fears following a series of bird flu cases earlier this year. A key measure of sales in China fell 11 percent, and the company says sales will remain under pressure in the fourth quarter.
Alcoa (AA) posted a quarterly profit, reversing a year ago loss. That easily topped expectations. Alcoa is important because of its reach across many sectors of the economy, but it's lost some of its prominence since being dropped last month as a component of the Dow industrials.
One of the stocks that replaced Alcoa in the Dow is Nike (NKE), and it's management holds a meeting with analysts today. Wall Street wants to know what the company sees as the next driver of its fast-paced growth.
Jos. A Bank (JOSB) has offered to buy rival retailer Men's Wearhouse (MW) for $2.3 billion. Together, the two companies have more than 1,700 stores.
The Wall Street Journal reports that Sears Holdings (SHLD) has sold a handful of its best store locations. The move raises some much-needed cash, but makes it harder for the company to improve its sales.
And Apple (AAPL) is reportedly planning to roll out more new products later this month. According to All Things D, Apple is expected to show a thinner, lighter version of its full-size iPad, as well as a new Mac Pro.
-Produced by Drew Trachtenberg.