Yellen's speech in focus; Inflation data in tune with Fed; Apple's big iPad
Investors may have to wait before taking off for the long Memorial Day weekend. Stocks (^GSPC) could be affected by comments from Fed Chair Janet Yellen, who will give an afternoon speech that is raising eyebrows for its timing so close to a holiday.
Meantime, the Labor Department is out with a key Fed metric--inflation. The April Consumer Price Index rising 0.1%, in line with estimates. But leaving out food and energy, it jumped a better-than-expected 0.3%...and was up 1.8% year-over-year.
Yahoo Finance Senior Columnist Michael Santoli says that so-called "core" inflation is really the thing to watch.
"It's going in the direction the Fed wants to see," he points out. "Remember, one of the prerequisites for the Fed moving on interest rates is they want to be reasonably certain core inflation is rising toward their target of 2%. So this is all in tune with a Fed preparing to finally have that liftoff."
And speaking of the Fed, Yahoo Finance's Aaron Task says Wall Street can't afford to assume Chair Yellen won't say anything important when she makes her address later today.
"You never know," he points out. "A couple weeks ago she was giving a speech in Washington ostensibly on women's issues and finance and then she said prices for equities were extraordinarily high and that gave the market a bit of a shudder."
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Earnings run like a deer at Deere
Here’s a look at some of the stocks the Yahoo Finance team will be watching for you today.
Deere (DE) shares are gaining ground in early trading. The farm equipment maker raised its outlook for the year after it reported quarterly earnings and revenue that topped Wall Street views. However, the company said a slowdown in the global farm economy dragged sales and profits lower from a year earlier.
Campbell Soup (CPB) shares are on the move this morning. The maker of its namesake soups, Swanson dinners and Pepperidge Farm foods is the latest to blame the strong dollar for a decline in sales. Campbell's is reporting fiscal third quarter profit that beat analysts' forecasts by a wide margin, while revenue came in a bit shy. The company is also saying results were affected by what it calls retailer inventory movements in its soup business and sees full year sales at the low end of its range.
Foot Locker (FL) is sprinting higher in early trading. The sportswear retailer posted a beat on both its top and bottom lines. Profit jumped 14% from a year earlier as it continues to see strong sales growth. The company also said its gross margins improved, while inventory levels declined.
Hewlett-Packard (HPQ) shares also on investors’ radar. Even though, the tech giant reported net income fell 21% from a year earlier, earnings per share topped analysts' estimates in its fiscal second quarter as corporate spending for servers picked up. However, revenue missed forecasts, falling nearly 7% from a year earlier as the company saw a decline in sales in almost all its business segments. HP said the stronger dollar also hurt sales and it gave a weak outlook for the current quarter. This comes as it prepares later this year to split into two separate companies
Time Warner Cable (TWC) shares up this morning on more takeover chatter. According to the Wall Street Journal, Charter Communications (CHTR) may be making another play for Time Warner Cable after its bid last year was sidelined by Comcast. This comes after Comcast (CMCSA) recently abandoned its offer for Time Warner Cable amid regulatory concerns.
Google's YouTube ads
Google (GOOGL) is planning to add a buy option to video ads on YouTube. Advertisers will be able to display product details and buy links alongside their commercials. Google is also reportedly inserting buy options in its search results.
Apple (AAPL) is reportedly planning to release its 12 inch iPad later this year. Various reports say that Apple will also introduce a split screen mode, which will allow users to run apps side by side.
