Stock Market Today: Why Starbucks and Moody’s Are on the Move

The Dow Jones Industrial Average has lost 18 points in the premarket, suggesting a flat start for the stock market today. Global shares were mixed to end the trading week: Japan's Nikkei gained 1.1% while European stocks were lower by 0.4% as of 9 a.m. EDT. 

Three-quarters of the S&P 500 companies that have posted second-quarter results so far have beat Wall Street's expectations, according to a tally by Bloomberg. That's one reason why stocks are bumping around near record highs. Still, more than half of the index's constituents have yet to deliver their quarterly numbers, so investors can expect more volatility in the weeks ahead.

Meanwhile, Moody's (NYSE: MCO  ) and Starbucks (NASDAQ: SBUX  ) stocks are on the move this morning after posting their second-quarter results.

Starbucks easily beat Wall Street's estimates last night by delivering a 22% jump in earnings on an 11% revenue gain. Comparable-store sales grew by 7% in the United States, which is a comp figure that most retailers couldn't hope to match. Consistent with recent trends, Starbucks' menu expansion gave sales a big boost as new food options from the La Boulange bakery rollout were responsible for 2 percentage points of comps growth in the U.S., management said. That should just be the start, though, as Starbucks plans to bulk up its lunchtime food offerings now that its breakfast upgrade is nearly complete. The stock was down 2.8% in premarket trading after gaining almost 2% in yesterday's session.

Moody's today delivered a healthy beat on both the top and bottom lines. Second-quarter revenue climbed 16% to $873 million, while Wall Street was expecting the financial services giant to see just a 6% rise to $800 million. Profit also came in surprisingly high as non-GAAP EPS improved 12% year over year to $1.12 a share.

CEO Raymond McDaniel said in a press release that those strong results reflected "healthy market conditions and good demand for a wide range of our products and services." To be sure, both of the company's major business divisions, investor services and analytics, booked 15% sales gains in the quarter. Expenses, meanwhile, grew at a slower pace, which helped operating margin climb by nearly a full percentage point to 47.1%. Moody's boosted its 2014 sales outlook, saying that it now expects gains in the "low-double-digit-percent range," as opposed to the "high-single-digit-percent range" it had forecast last quarter. The stock was up 1.8% in pre-market trading.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3044225, ~/Articles/ArticleHandler.aspx, 8/30/2015 2:25:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Demitrios Kalogeropoulos

Demitrios covers consumer goods and media companies for, as well as broader moves in the economy.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:02 PM
MCO $104.39 Down -0.18 -0.17%
Moody's CAPS Rating: ***
SBUX $55.63 Down -0.32 -0.57%
Starbucks CAPS Rating: ****