April 26 - Wall Street moved higher ahead of better-than-expected results from Amazon, Starbucks and Zynga, which followed mixed earnings from Pepsi, Exxon Mobil and United Parcel Service. Conway G. Gittens reports.
Wall Street rallied for a third day in a row as earnings season continues to be encouraging. After the close, internet retailer Amazon announced results that were way ahead of forecasts. Sales for the maker of the Kindle tablet surged 34 percent from a year ago. And the company's sales predictions for the current period are at the top end of analysts' expectations. Starbucks had a slightly better than anticipated report. It boosted full-year guidance, but its outlook for this quarter is at the low end of forecasts. And social gaming company Zynga exceeded profit expectations, excluding special items. Ahead of those numbers: Net income at Pepsi beat low expectations. The soft drink and snacks company's results are described as a work in progress by Jonathan Feeney of Janney Montgomery Scott. SOUNDBITE: JONATHAN FEENEY, SENIOR FOOD AND BEVERAGE ANALYST, JANNEY MONTGOMERY SCOTT (ENGLISH) SAYING: "Volumes still on the decline in developed markets. Continued solid performance in their emerging markets strongholds I would say. Cash flow is a little bit weaker than expected. Overall operating profit on plan with their big February 9th estimate reduction." Other results were not so good. Profits at Exxon Mobil were down led by a drop in oil and gas production. And United Parcel Service missed forecasts due to slower business related to Asia and Europe. Economic data was mixed. First-time jobless claims only dropped by a thousand last week. Meanwhile, pending home sales jumped to nearly a two-year high in March. As for the market reaction, the Dow posted a triple-digit gain with stocks higher across the board. In Europe: results out of Germany's biggest lender Deutsche Bank were worse than feared but stocks in Germany and the U.K. rallied, but shares in France were lower. Conway Gittens, Reuters