Market Minute: Costco Earnings Miss Forecasts; Yum Continues to Struggle

Costco earnings at a discount, and a fast food giant continues to struggle. Those stocks and more are what's in Wednesday's Market Minute.

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 earnings
Rick Bowmer/AP
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.

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This article is like it's the end of Costco & it's far from it. This was not even worth writing the article.

October 09 2013 at 3:33 PM Report abuse +1 rate up rate down Reply
1 reply to Shirley's comment

when the yuppies and greentards budgets get tight,then what ?

where would THEY BE without THAT ?

October 15 2013 at 12:17 AM Report abuse rate up rate down Reply

Costco is run by leftists....maybe people are finally opening their eyes.

October 09 2013 at 2:09 PM Report abuse rate up rate down Reply
1 reply to TB's comment

nah,every year a certain percentage WAKE UP and do the math-
co$tco membership on top of the prices = BS !
what's the big DEAL and deals offered ?
can do the same or better WITHOUT A MEMBERSHIP fee simpy by comparison shopping and buying WHAT YOU NEED and purchasing OTHER ITEMS which are a very good price ELSEWHERE.
gawdsake--how many INTERNET deals even for groceries are out here including FREE DELIVERIES ?

October 15 2013 at 12:22 AM Report abuse rate up rate down Reply


October 09 2013 at 12:14 PM Report abuse -2 rate up rate down Reply
1 reply to bzzzbayte's comment

It's your dysfunctional ** president and senate - not congress.

**(that's how ya spell it, BTW)

October 09 2013 at 2:11 PM Report abuse +1 rate up rate down Reply

I love the wine selection and pricing at Costco.

October 09 2013 at 12:11 PM Report abuse rate up rate down Reply

Looks like COSTCO the darling of the left isnt so well thought of based on the posts here.

Remember recent articles on the fact they paid workers more than WALMART which now appears to be catching up to them with declining profits. They will have to cut labor costs to remain competitive.

October 09 2013 at 11:47 AM Report abuse +1 rate up rate down Reply
1 reply to dkelmstra's comment

They didn't loose money or close stores they simply didn't make as much as expected. Why would you hate a store that pays well and turns an excellent profit. Partisan Hack?

October 09 2013 at 12:39 PM Report abuse +1 rate up rate down Reply
1 reply to maceandemma's comment

practically all products at walmart come and are made in china!!! walmart is not the way it use to be.. I do not go to cosco it really looks like a sam's club now

October 09 2013 at 12:48 PM Report abuse rate up rate down

Supermarket brands are almost always cheaper than Costco's Kirkland brand.
Name brands at the supermarket on sale are usually less expensive than Costco.
Much more variety at supermarkets too.. I like choices. At Costco they have like one or two brands available for any given item. At Supermarkets it's several-dozens.

October 09 2013 at 11:24 AM Report abuse rate up rate down Reply

Kmart and Target are sometimes cheaper than Costco as well.
Especially the store brands and sale items on name brands.

October 09 2013 at 11:20 AM Report abuse rate up rate down Reply

A Costco was built here, in Utah, at the expense of a man being forced out of his home, and watching it demolished. He was given no choice, as if he woke up in East Berlin, Red China or The Iron Curtain. "Eminent domain." It's B.S. It never happens to the rich, the famous or the powerful. I'd be happy to displace them myself, for free, and top it off with a healthy ass-kicking. I hope Costco goes out of business. I've never shopped there anyway. I don't even shop at Target. Target tried to destroy Paula Deen for something that happened 30 years ago, when it wasn't even illegal back them. Screw them. I'll never give Target another penny. I hope they fall flat on their face, too. I'd love to see them try to destroy MY career for calling them a bunch of dumb, elitist, Commie-Lib crackers, snowflakes, and honkies.

October 09 2013 at 11:04 AM Report abuse -1 rate up rate down Reply

Costco has a terrific return policy. Their meats are very good and at a reasonable price.
It is not a necessity to join Costco, it's more like entertainment. I buy their gasoline and like the quality of the gasoline.

October 09 2013 at 10:51 AM Report abuse +1 rate up rate down Reply
1 reply to endlessdrip's comment

Do you drink that too?

October 09 2013 at 11:49 AM Report abuse rate up rate down Reply

COSTCO like other retailers is now feeling the effects of the declining economy. COSTCO caters to the higher level customer and even they are now seeking out lower prices.
Here in Houston we have 3 COSTCOS -- all in affluent areas, all require membership, and I find their prices are more expensive than other stores. Compare to Walmart with over 50 locations in Houston area.
The rising costs of Obamacare is affecting all businesses as we see profit reports on decline. We are heading towards another crash within next year.

October 09 2013 at 10:41 AM Report abuse +1 rate up rate down Reply
1 reply to dkelmstra's comment

It's just Over Expansion ..all due to The earlier Decade of Getting Free $!
These stores did so to Get More Market Share in the future
When the Economy Picks aback up? They will Shine with more Stores ready to take your $
And The Country depends on the Upper and Wealthy Class.. So you better hope they Continue to Be that way and they share the wealth..

The Rich Get Richer, it's Simple Economics #101.. What's 5% Interest onf $1 Million vs $10,000? For the wealthy and Rich they just have to Be carefull of not Over Spending to Get richer.. Those Middle and Lower Class? Will Never Get Rich.. It's Mathamatically Impossible..

October 09 2013 at 10:49 AM Report abuse rate up rate down Reply