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Starbucks shares pared early losses after the coffee company said it would restate its fourth-quarter results to show an operating loss of $2.12bn to reflect damages related to its dispute with Kraft Foods, Reuters reports.
The stock added 1.1 per cent to $81.46. On Tuesday Starbucks was ordered to pay Kraft $2.76bn after it ended the companies’ grocery deal at least three years early.
Mondelez , which spun off Kraft Foods Group, its North American grocery operations, as an independent company in October 2012, will receive all proceeds from the Starbucks-Kraft dispute. Mondelez shares rose 2.7 per cent to $33.31.
Macy’s bucked broader market declines to jump 9.4 per cent to $50.68 after the department store chain reported higher-than- expected third-quarter comparable sales and earnings, helped by more promotions and advertising.
Tesla Motors regained 0.7 per cent to $138.70 after Elon Musk, chief executive, said the company will not recall its Model S electric car despite three vehicle fires that raised safety questions and hurt the carmaker’s stock price.
Potbelly jumped 9.3 per cent to $29.58 a day after the sandwich chain reported results that beat Wall Street expectations as more customers visited its restaurants. The company, which went public in October, said same-store sales rose 2.5 per cent in the quarter.
Shares of Extended Stay America , the hotel chain, rose 19.4 per cent to $23.87 in their market debut yesterday, valuing the chain at about $4.8bn as investors bet on a recovery in the US hotel sector. The North Carolina company raised $566m after its initial public offering of 28.3m shares was priced at $20, the midpoint of its expected price range. The stock was up 16 per cent at $23.20.
Office Depot , the US office supply retailer that merged with OfficeMax last week, gained 3.5 per cent to $5.39. It named Roland Smith, the former head of the US unit of supermarkets operator Delhaize Group, as chief executive on Tuesday, hoping to tap his expertise in integrating and turning round businesses.
YRC Worldwide , the trucking company, sank 20.7 per cent to $7.72 after it reported a bigger-than-expected quarterly loss due to a shortage of drivers.
Broadly, US stocks were mixed as investors weighed uncertainty over how soon the Federal Reserve will begin to wind down its stimulus.
The S&P 500 Index rose 0.8 per cent to 1,782.00. The Dow Jones Industrial Average gained 0.5 per cent to 15,821.63. The Nasdaq Composite Index ticked up 1.2 per cent to close at 3,965.58.
Investors awaited comments from Fed speakers, including Ben Bernanke, chairman, who was due to speak yesterday evening, for clues on the longevity of the Fed’s stimulus, which has propped up the US economy and equity market for much of the year.
Mr Bernanke’s speech comes on the heels of divergent remarks by several other Fed officials; Minneapolis Fed Bank president Narayana Kocherlakota and Atlanta Fed president Dennis Lockhart said on Tuesday that monetary policy should remain accommodative. In contrast, Dallas Fed president Richard Fisher said massive bond purchases cannot continue for ever.
Investors are also likely to refrain from big bets ahead of Senate confirmation hearings today with Janet Yellen, nominated to chair the Fed after Mr Bernanke steps down.
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