Pre-Market Primer: Starbucks Corporation Beats; Activision Blizzard, Inc. Taking Control Back From Vivendi


Stocks are lower today as earnings season quiets down and global markets slumped.

Before the opening bell, major US indices pointed to a lower open. Dow (INDEXDJX:.DJI) futures were down 0.34% to 15,432 while futures contracts on the S&P 500 (INDEXSP:.INX) sank 0.39% to 1,677.50 and Nasdaq (INDEXNASDAQ:.IXIC) futures fell 0.23% to 3,043.00.

Later this morning, the July University of Michigan/Reuters Consumer Sentiment guage is released. It is likely to have risen just 0.1 point over the flash reading to 84.

The earnings schedule slows down a bit today. Yesterday, Amazon ( AMZN ) missed expectations as it continues to expand and invest in data centers and video. Amazon booked a loss of $0.02 per share while revenue rose 22% to $15.7 billion. As of this morning, shares were down 1.9%.

Samsung (OTCMKTS:SSNLF) also missed on its bottom line, but profit rose 50% to $6.8 billion. Shares declined 0.9% as margins for high-end smartphones fell. The Korean electronics company will invest $18 billion in its memory and display units.

Vivendi ( VIV ) agreed today to sell back 85% of its share in Activision Blizzard ( ATVI ). The video game maker will repurchase the shares for $5.83 billion. Activision's stock soared 18.25% on the news.

Starbucks ( SBUX ) announced second quarter profit of $0.55 per share, beating expectations by $0.02 while revenue rose 13% to $3.7 billion. Same store sales rose 8% worldwide despite some price hikes. Investors applauded the company's results as the stock gained 7% after hours.

European shares are mostly in the red. Japan's Nikkei (INDEXNIKKEI:.NI225) fell 3% today as the yen rose against the dollar after a mixed report on inflation. The deflation-fighting policies are just starting to show results. Consumer prices rose 0.2% on a yearly basis last month after falling 0.3% in May. This exceeded economists' expectations, but excluding volatile energy and fresh food, consumer prices declined by 0.2%.

Twitter: @vincent_trivett

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Earnings , Stocks , Technology

Referenced Stocks: AMZN , ATVI , SBUX , SSNLF , VIV



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