A media giant's big cable play pays off, and a heavy dose of caffeine is creating some jitter on Wall Street.
The Dow Industrials and the S&P 500 continued to set record highs. The Dow rose another 49 points yesterday and S&P 500 added 6. The Nasdaq gained 16.
Media giant News Corp (NWS) posted sharply higher earnings, led by strong growth at its Fox television division. The company is in the process of spinning off The Wall Street Journal and the rest of its publishing unit, which posted sharply lower net.
Shareholders of Monster Beverage (MNST) are waking up with a headache. The maker of high-caffeine drinks reported a 17 percent earnings drop, due partly to rising legal costs. The company faces charges that its drinks can cause serious health problems.
Separately, Wrigley says it is temporarily taking its Alert Energy Caffeine Gum off the market while the FDA investigates the safety of added caffeine.
The daily-deals web company Groupon (GRPN) says its loss narrowed and revenue edged higher. The stock is expected to pop at the open, but it's tumbled 78 percent since going public in late 2011.
And Tesla Motors (TSLA) posted its first-ever quarterly profit. The company makes the Model S luxury electric car. The company is trying to become the first successful auto start-up in the US in 90 years. Consumer Reports has given a near perfect rating to the Model S.
Facebook (FB) is reportedly in advanced talks to buy Waze, an Israeli company that provides real-time traffic information. The deal could be valued at up to $1 billion.
Costco (COST) says a key measure of sales rose four percent in April, a bit weaker than expected.
And Green Mountain Coffee Roasters (GMCR) has extended for another five years its agreement to sell Starbucks (SBUX)-branded beverages for use in Green Mountain's Keurig brewing systems.
The 40 Most Unusual Economic Indicators
Market Minute: News Corp Beats the Street, Plans a Spin-Off
The Concept: People seek out others for first dates when the economy turns down and sentiment falls (they're lonely!).
The Proof:Match.com notices strong patterns on its site that correspond to economic downturns. The company said the fourth quarter of 2008 was its busiest period in seven years (its second busiest weekend ever came when the Dow dropped to five-year lows in November 2008). Match said traffic also spiked after the Sept. 11 attacks.
The Concept: The more the Drudge Report focuses on business stories, the more likely the stock market is to have hit a bottom.
The Proof: Bespoke Investment Group recently tracked the number of financial headlines on the Drudge Report front page and compared them to the S&P 500. Turns out bottoms in the S&P 500 correlated to the number of business headlines on Drudge.
The Concept: Markets should rally during the Summer Games as the games distract investors from gloomy headlines.
The Proof: Bespoke Investment Group tracked the Dow Jones back to 1900 and found positive returns in 18 of the last 26 games. Bespoke based each year's time frame as that between the opening and closing ceremonies.
The Concept: Countries where the average male organ is, well, average, have stronger economies than those with the largest and smallest.
The Proof:Tatu Westling of the University of Helsinki conducted the study and found the correlation. How does he explain it? Salivary testosterone levels have been shown to be positively associated with risk-taking behavior. Assuming these links hold it would suggest that male organ acts as a proxy for risk-taking. Therefore, countries that engage in too much or too little risk taking underperform countries that take moderate risk.
The Concept: The Guns-to-Caviar index measures the ratio of money spent on military jets to that on private jets, or the relative amount of anxiety and elation among the global elite.
The Proof: Richard Aboulafia, the creator of the index, says, "Defense budgets rise with threats and perception of threats, and cash filters down, with planes typically delivered two years after they are ordered."
The Concept: The intensity of Marine Corps advertisements evolve with hiring trends. During tough times, civilians who can't get work are more likely to enlist. But if too many people sign up, the Marines toughen up their videos to scare off potential recruits.
The Concept: People stop getting cosmetic surgery as the economy begins to falter. The reasons: 1. If job cuts are coming, people want to save for futures needs; 2. Even if job cuts are not coming, employees don't want to take off from work for elective surgery, preferring to stay in the their bosses' good graces.
The Proof: Plastic surgery revenue in the U.S. declined 9 percent in 2008 as the economy headed into contraction, with the American Society of Plastic Surgeons expressly citing the bad economy.
The Concept: Won't be able to make it out to that bar after work? Apparently you aren't alone. Cash-strapped consumers often try to save money by drinking at home, sending pub sales and jobs downward.
The Proof: In Europe, 73 percent of jobs tied to the beer industry are outside breweries. These include jobs at bars and restaurants. From 2008 through 2010, employment in the beer industry fell 12 percent, versus 2 percent for Europe as a whole. Surely austerity measures feel much harder without that drink.
The Concept: If a team from the old National Football League (now the NFC) wins the Super Bowl, the S&P 500 will gain for that year. However, if a team that can trace its roots to the old American Football League (now the AFC) wins, the market will decline.
The Proof: Believe it or not, analysts tell us it is widely accepted that this rule has been accurate around 80 percent of the time since 1970.
The Concept: "Usually, in an economic downturn, heels go up and stay up -- as consumers turn to more flamboyant fashions as a means of fantasy and escape," IBM's Dr. Trevor Davis said.
The Proof: The low flapper shoes of the 1920s gave way to high pumps during the Depression, while stilettos surged over the dot-com bust. The most recent case shows some deviation. While dizzying heel heights walked the walk during the 2008-2009 crisis, they came down even as the U.S. economy sputtered at the end of 2010 into 2011.
The Concept: Two indicators here. The first: Men will buy ties to appear that they're working harder during difficult economic times. The second: Ties get slimmer during bad times and brighter when the economy starts to recover.
The Proof: In the U.K., with news that layoffs could be coming in 2007, sales of ties spiked as men tried to show employers that they came to do work. Width of the ties narrowed due to austerity measures during past wars, but current production abilities have seemingly put that indicator on hold. But anyone who has spent time in lower Manhattan will tell you that skinny ties are back.
The Concept: During flush times women are more likely to get their hair cut, dyed and otherwise groomed more frequently. During recessions, they're more likely to take off extra inches to save on trips to the salon.
The Proof: Few analysts have latched on to the idea, but Japan's Nikkei magazine drew on data that revealed women cut their hair shorter as the economy fell in 1997.
The Concept: When the economy slips, consumers turn to the coupons in their Sunday circulars to try to cut costs on things like toothpaste, laundry detergent and groceries.
The Proof: In 2009, coupon redemption soared to 3.3 billion uses as consumers made an effort to save more at the market. During the second quarter of 2011, coupon use increased 4%, coupon processing firm Inmar says.
The Concept: They're always busy with other clients, so getting a contractor to return a call can be a big hassle during a home renovation project. Thus, the quicker a contractor returns your calls, the worse the economy is doing.
The Proof: There isn't much hard data on this one. But it seems to make sense. Then again, if the economy is bad enough, you might not be able to afford that home makeover you want to commission.
The Concept: Discovered by economist George Taylor in the 1920s, the Hemline Index predicts the market based on the length of women's skirts and dresses. The shorter hemline, the better the economy is looking.
The Proof: Just a myth, according to retail buyers. But some economists still point to the dreary lengths that came out following the financial crisis in 2008. And others worry that the maxi skirts out this summer are forecasting another downturn.
The Concept: A sharp decline in the usage of cardboard means a recession is on the horizon, while increases indicate expansion.
The Proof: A large fraction of the world's non-durable goods gets shipped in cardboard containers, making this indicator rather straightforward. When cardboard box sales increase, it means companies are shipping a more goods to sell, and therefore employing more people. The largest producer of cardboard boxes in Europe, Smurfit Kappa, saw top line results fall by $269.9 million in 2008 from a year earlier, as operating profits declined 50 percent.
The Concept: This one's pretty simple: GDP should correlate to the amount of garbage produced. The reason: if you create things you also have to throw other goods out.
The Proof: Of all categories that ship by rail, none correlate more tightly to GDP than waste. A 2010 Bloomberg piece by economists Michael McDonough and Carl Riccadonna put the correlation as high as 82 percent.
The Concept:Simple supply and demand: During boom times when women can find better jobs, there are fewer hookers and hourly prices for those remaining rise.
The Proof: Latvian sex workers have unfortunately been stuck in a rut. As the economy soured, rates fell as low as $60 for a night's work in 2009. This Baltic index is way more intuitive than that other Baltic index.
The Concept: The hotter your waitress, the closer the economy is to the brink. During boom times, physically attractive people can leverage their looks to get better paying jobs -- perhaps modeling or hosting corporate events.
The Concept: This index compares currency exchange rates in different countries relative to the local cost of a Big Mac. The index uses purchasing power parity to explain whether a currency is overvalued or undervalued.
The Proof:The Economist publishes this index annually and it shows a strong correlation between the dollar price of a Big Mac and GDP per person. The Economist notes that simply comparing prices is irrelevant, as labor costs vary greatly by country.