Exsisting home sales up, Starbucks (SBUX) reports strong sales and UPS warning of weaker than expected results.

Markets wavered on Friday after news was released that existing home sales grew last month. The National Association of Realtors reported that sales of existing homes gained 2.4% to a total annual rate of 5.04 million units. This was below the 5.06 million units that economists’ were expecting. The level of first-time homebuyers came in at 29%. For the entire year, sales of existing homes dropped 3.1%. This was disappointing and marked the first year-over-year drop in four years. Ted Wieseman, an economist with JPMorgan, said, “The still-tight mortgage credit conditions and more challenging first-time homebuyer affordability that were revealed by the failure of home sales to continue recovering last year remain serious concerns as hear into 2015.”

Shares of Starbucks Corporation (SBUX) were jumping up over 6% after the company reported strong sales. The coffee giant said that during the first fiscal quarter they hit net revenue of $4.8 billion, up 13%. Same-store global sales grew 5%, with a boost of 2% in traffic. In the U.S., comparable store transactions were up 9 million and hit 12 million worldwide. Net income grew to $983.1 million, or $1.30 per share. This is up substantially from the $540.7 million, or 71 cents the year earlier. The company’s CEO, Howard Schulz, said, “Starbucks record Q1 fiscal 2015 financial and operating performance was exceptional by every metric and standard.”

United Parcel Service (UPS) was tanking over 9.5% after the company reported less-than-stellar news. The company known for the big brown trucks reported that they hired nearly 95,000 seasonal employees and ramped up mobile facilities to help prepare for the busy holiday season they were expecting. However, the company warned that their fourth-quarter sales would not come in as expected. The company is projecting sales to come in at $1.25 per share, which is well below the $1.47 analysts are projecting. CEO, David Abney, said, “Though customers enjoyed high quality service, it came at a cost to UPS.”

That’s all for today,

Warren Gates, Normandy Research

Share your thoughts...

We encourage people to join in on the discussion. Please keep in mind however, that all comments are moderated according to our comment policy, and all links are nofollow. Let's keep the conversation professional and meaningful.