Market Minute: Stocks Set to Rally on Fed Comments; Yum Tops Forecasts

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Stocks are set to rally following comments from Federal Reserve Chairman Ben Bernanke, and KFC continues to struggle. Those and more are what's in business news Thursday.

The Dow industrials (^DJI) fell 8 points Wednesday, snapping a four-day winning streak. But the S&P 500 (^GPSC) eked out a tiny gain and the Nasdaq (^IXIC) rose 16 points. The Russell 2000 index of smaller stocks has set all-time highs for three straight sessions.

Fed Chairman Bernanke says the central bank doesn't plan to raise short-term interest rates for quite a while, even after the unemployment rate falls to the 6.5 percent target rate.

yum brands earnings stocks investing federal reserve interest rates ben bernanke
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Yum Brands (YUM) -- owner of KFC, Pizza Hut and Taco Bell -- reports earnings fell for a third straight quarter, but still topped expectations. China was once again the main culprit as KFC continued to suffer from lingering safety issues involving a chicken supplier, and a separate outbreak of bird flu. But the company issued an upbeat outlook.

Chevron's (CVX) oil production dropped in the second quarter. Even though oil prices are soaring right now, the much lower prices a few months ago are likely to hurt the company's earnings. And analysts say Exxon Mobil (XOM) and other oil giants could suffer from similar problems.

PC sales have now declined for a record five straight quarters. A pair of research firms also say Hewlett-Packard (HPQ) has lost its crown as the world's top seller to China's Lenovo. The big problem is that more and more people are using tablets and smartphones, instead of PCs.

Some leading retailers are reporting sales for June. Costco's (COST) same-store sales increased a better-than-expected 6 percent, but Zumiez (ZUMZ) fell short of expectations.

Walmart Stores (WMT) is backing away from a plan to build three stores in the District of Columbia. The city council passed a bill late Wednesday requiring the retailer to pay its workers a starting wage that is considerably higher than the city's minimum wage.

And Apollo Group (APOL) is set to rally after its for-profit University of Phoenix unit won accreditation for an additional two years.

-Produced by Drew Trachtenberg


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33 Comments

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ranewbould

220,000 new jobs are created. There are 360,000 new unemployment apps. The stock market goes up triple digits. How is this sustainable?

July 11 2013 at 5:06 PM Report abuse rate up rate down Reply
1 reply to ranewbould's comment
demcoverup

It's not

July 11 2013 at 5:08 PM Report abuse +1 rate up rate down Reply
mrspelosi

badbadevan
"Get a life !!" GOP economical policies since the time of Reagan is the cause of the devastation of the middle class.

______________________________

Have you signed up for any volunteer work to help out in your community yet dear? Or are you still standing around waiting for others to do for you darling?

July 11 2013 at 4:06 PM Report abuse rate up rate down Reply
mrspelosi

badbadevan
Tea Party = Tyranny

____________________________

Any job prospects dear?

July 11 2013 at 3:56 PM Report abuse rate up rate down Reply
TONY

Wow , just Wow ... We are really headed for a Brick wall soon on this and going about 100 miles an hour , lol Pretty messed up when the stock market numbers are controlled by the word of just one guy ( Bernanke) ! It is like leading cows to slaughter and the bubble will burst soon , that much we all know is true. Hoisting up the Stock Market on fake numbers and hearsay is just buts and Bernanke is making the dollar more and more worthless and these lambs are being lead to slaughter slowly lol

July 11 2013 at 3:00 PM Report abuse +3 rate up rate down Reply
2 replies to TONY's comment
TONY

For you people giving this comment above a thumbs down , do you not realize that the stock market is being controlled by the word of just one guy and based on rumors and fake numbers ? It is like smoke and mirrors for a Magician , lol Bernanke continues printing money and making the dollar worth less and less but some of you do not realize this at all. This has been seen before and soon our credit rating will get downgraded again . Just how much money are we now owing to Japan ? and China ? They buy our debt at an increasing rate daily and you do not even realize what is happening.

July 11 2013 at 3:22 PM Report abuse +1 rate up rate down Reply
2 replies to TONY's comment
h.hughjardon

Peol keep leaving the workforce that 6.5% unemployment may come sooner than ben thinks.

July 11 2013 at 3:29 PM Report abuse -1 rate up rate down
h.hughjardon

People

July 11 2013 at 3:29 PM Report abuse -1 rate up rate down
rlynn2578

I agree Tony. If the FED and the government agenices reporting the economic numbers were companies, the market would be nose diving from the obvious accounting scandals. Free markets do not seem to exist. The markets are manipulated when they move like this because of a statement made by one man and the actions of the FED. There has to be a steep price to pay somewhere along the line. Company revenues continue to go down quarter over quarter, yet the market continues to skyrocket upward. The market sure doesn't seem to move on fundamentals anymore. It is sad and a little ironic that the Financial Instutions largely responsible for the 2008 crash are the ones the current policies benefit the most.

July 11 2013 at 5:48 PM Report abuse rate up rate down Reply
Kevin

Thank you president Obama......happy days are here again!

July 11 2013 at 2:41 PM Report abuse +1 rate up rate down Reply
2 replies to Kevin's comment
TONY

The Stock Market numbers have nothing to do with Oblama at all !! Get a life !!

July 11 2013 at 2:52 PM Report abuse +2 rate up rate down Reply
3 replies to TONY's comment
mrspelosi

Kevin dear you must have received an increase in your welfare check to think that happy days are here again darling. How unfortunate for you that you wander through life in a state of confusion doll.

July 12 2013 at 10:26 PM Report abuse rate up rate down Reply
lpi2007

on Fed Comments..... MORONS

July 11 2013 at 1:40 PM Report abuse +3 rate up rate down Reply
Jim

Thank you Mr. Bernanke, may I have another.

July 11 2013 at 1:18 PM Report abuse +1 rate up rate down Reply
BRENDA

I just wish all fast food chain employees would wear gloves when they handle our food or get fined if they are spotted without gloves on. cell phone pictures would work. there should be website wear we can post our pics so there companys can go on there and check out there employees.

July 11 2013 at 1:03 PM Report abuse -2 rate up rate down Reply
1 reply to BRENDA's comment
jenjutz

Do you want them to wear latex gloves? Many people are allergic to latex. Food handled by people wearing latex gloves can cause serious complications. Or would you prefer PVC gloves which are also an allergen because of the powder in them? Hand washing is the best way to prevent food born illness. I have my sanitation and food service license so I do know what I am talking about.

July 11 2013 at 4:58 PM Report abuse rate up rate down Reply
aftonmoon

Billions of dollars transferred from savers to Wall Street gamblers with no end in sight. Bernake has rejected capitalism and no longer trusts the market to determine interest rates. And the Republicans bring up the old criticism of transfer of money when it comes to social services, but they cheer when those transfer payments are made form savers to billionaires. Its time for savers to pull all their money out from the banks or at least threaten to. Let's face it Bernake will continue to print money and distribute it to Wall Street and the banksters forever, even if the dollar becomes worthless

July 11 2013 at 12:58 PM Report abuse +4 rate up rate down Reply
3 replies to aftonmoon's comment
posthuf

bernanke - controlling the markets with one word at a time.

July 11 2013 at 12:48 PM Report abuse +1 rate up rate down Reply