Summary: Amazon's miss, Starbucks beats on earnings. Sodastream, Zillow, Trulia surge on deal talk; Wal-Mart C-suite changes; New home sales disappoint. Bobbi Rebell reports.
A record day for stocks- The S&P 500 hitting a new high for the third straight session- though the Dow and Nasdaq closed lower. After the bell. Amazon reporting a loss that was almost double forecasts. It's been investing in new business like digital content and same-day delivery. That offset a 23 percent rise in revenue. Starbucks' earnings coming in above estimates- with sales up more than forecasts- largely driven by strength in the Americas region. Facebook hit a record high a day after its strong earnings report. Sodastream surging- it may be in talks to go private in what could be a very lucrative deal.. .and news that real estate website Zillow may be trying to buy Trulia- sent those stocks higher- both of those stories first reported by Bloomberg. Wal-Mart's U.S. CEO Bill Simon will be replaced by Asia Chief Greg Foran, who will come back to the U.S. to help turnaround that business. To earnings and autos: GM hurt by recalls and the expected cost of its victims compensation fund- reported a lower second quarter profit. But Ford results beat forecasts- thanks to lower costs and strength in North America and Europe. Caterpillar's earnings were higher than forecasts- though sales were hurt by a slump in the global mining industry. Drugmakers Bristol-Myers Squibb and Eli Lilly both beat Wall Street expectations, helped by cost controls. Shares of Under Armour surging- quarterly revenue rose by more than a third. Turning to housing- D.R. Horton - the top U.S. homebuilder - reported a 23 percent drop in third quarter profits. But rival Pulte profits were up 15 percent- because it was able to sell homes at higher prices. But the overall housing market is still struggling. Sales of new homes posting their biggest drop in almost a year- down more than eight percent. Weekly jobless claims fell to their lowest level since 2006- more proof the labor market recovery is gaining traction. A separate report from financial data firm Markit showed U.S. factory activity expanded in July- though the pace was slower. Turning to Europe- the IMF says it will meet about Ukraine's loan program in late August- and will likely allow it to receive its next aid package of $1.4 billion. The news comes as the governing coalition of Ukraine collapsed and the prime minister resigned. As for the markets- shares of the major indexes in western Europe rose on better-than-expected euro zone economic data.