Morning Market Thoughts: Starbucks Earnings and Oil Prices
Looks like we are setting up for a rough start in the US equity markets. Tons of numbers from various companies are being released today. Â Â
As you’re heading on your coffee run to Starbucks
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PowerRating) this morning, remember CEO Howard Schultes reported just after the close yesterday that SBUX is lowering its earnings estimates plus revising its entire forecast on April 30th.
Schultes is blaming the weak economic environment for the decline. SBUX stock dropped severely after the announcement, however, it appears to have stabilized around 16 currently.
Wonder if price cuts to the consumer are in the works at SBUX? Somehow I doubt it. Schultse says that customers are still coming , just cutting back on the frequency of their visits. I believe that SBUX may be a pilot fish for what’s to come in the US economy. We will see!
Oil is down, now two days in a row. The dollar is showing strength which appears to be adversely effecting oil’s bullish run. Gold is hovering right around 900 this morning. Strong support is evident at 897 in the metal.
Dow futures are down big right now, indicating a loss of 1/2 a percent at the open.
Dave Goodboy is Vice President of Marketing for a New York City based multi-strategy fund.