FedEx fails to deliver; General Mills' mixed results; American Apparel back in vogue

Kathy Cherpelis

Earnings back in focus on Wall Street this morning.

FedEx (FDX) shares fell in early trading. The giant shipping company reporting second quarter profit and revenue that fell short of analysts' estimates.  FedEx says while package volume in the U.S. increased, revenue per package dropped because of a lower fuel surcharge and lighter-weight deliveries.  The company is also reiterating its estimate of moderate growth over the next six months.

Some mixed results from General Mills (GIS). The maker of Cheerios cereal and Betty Crocker cake mixes reporting earnings that beat Wall Street views, but revenue was slightly below forecasts. Sales fell 3.5% from a year earlier as it continues to struggle with weak demand in the U.S. and slowing growth in Europe and Canada.  Shares of General Mills were slightly higher on the news ahead of the bell.

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Darden Restaurants (DRI) shares rose in the pre-market after the company reported earnings and revenue that topped analysts' estimates as same-store sales improved at its Olive Garden chain.  Darden has made some major changes in the past year; it replaced its entire board amid pressure from activist investors, sold its Red Lobster restaurants and updated its menus and marketing campaigns.

American Apparel (APP) shares were back in fashion with investors this morning.  The clothing company finally gave the boot to controversial Chief Executive and founder Dov Charney for "cause.”  This comes after suspending him for six months amid sexual harassment allegations.

Volcano (VOLC) shot up in early trading.  Amsterdam based Royal Philips said it’s buying the U.S. medical equipment maker for more than $1billion or $18 a share. The deal will help Philips expand its reach in the medical imaging market.

Sony (SNE) continues to grab headlines. The New York premier of its new comedy, "The Interview" has been canceled after hackers threatened attacks at theaters that show the film.  The movie depicts the assassination of North Korean leader Kim Jong Un.  Although officials aren't sure if the threat is credible, Sony says it would not object if movie houses chose not to run it.  Carmike Cinemas (CKEC) -- which has 278 outlets-- is canceling its screenings.