News Briefs: eBay, Starbucks Beat The Street, Military Boosts Boeing

Nasdaq Up for 11th Straight Day; Military Boosts Boeing’s Profit; Dollar Brings Down Pfizer’s Bottom Line; Eddie Bauer Saved by Suitor in $286 Million Deal; SEC to Restrict Pay-to-Play at Pensions; Qualcomm Sales, Profit Down Slightly; eBay Beats the Street, But Profit Still Down; A Leaner Starbucks Beats Profit Estimates

• The Nasdaq Composite Index rose for its 11th consecutive day following positive earnings from Apple Inc. (AAPL) and Starbucks Corp. (SBUX). The index rose 0.53%, or 10.18 to close at 1,926.38 yesterday (Wednesday). Meanwhile, the Dow Jones Industrial Average was down 0.39% after investors sold some of the market’s recent winners, pocketing the profits. The Dow closed at 8,881.26, down 34.68 points. Also, the Standard & Poor’s 500 Index was slightly down, closing at 954.07, down .05% or 0.51 points.

• The Boeing Co.’s (BA) profit rose in its second quarter, thanks in part to shipments of military aircraft, the company said yesterday (Wednesday). The company reported a net income of $998 million, or $1.41 per share on revenue of $17.1 billion for the quarter ended June 30. That compares to a net income of $852 million, or $1.16 per share on revenue of $16.9 billion in the same quarter last year.

• A strong dollar hurt Pfizer Inc.’s (PFE) bottom line, with earnings declining 19%. The drug maker reported a net income of $2.2 billion, or 34 cents per share on revenue of $10.9 million for the quarter ended June 28. That compares to a net income of $2.7 billion, or 41 cents per share on revenue of $12.1 million for the same period last year.

• Troubled apparel retailer Eddie Bauer Holdings Inc. (EBHIQ.PK) received bankruptcy court approval to sell its assets to private equity firm Golden Gate Capital for $286 million in cash. The sale will enable Eddie Bauer to emerge quickly from bankruptcy, the companies said in a prepared statement. Golden Gate attorney James A. Stempel said in court it will keep at least 300 of Eddie Bauer’s 370 stores open, according to a Bloomberg News report.

• In an effort to crack down on abuse at public pension funds holding $2.2 trillion of assets, the U.S. Securities and Exchange Commission could restrict investment advisers from giving money to so-called placement agents and political campaigns that oversee retirement funds. SEC commissioners voted unanimously to approve the proposal yesterday (Wednesday). Under the rule, an investment firm would be barred from managing a fund’s assets for two years if its executives donated money to a politician involved in awarding contracts, Bloomberg News reported.

• Qualcomm Inc. (QCOM) blamed declining shipments of traditional cell phones for a slight drop in sales and profit for its third quarter ended June 28. The chip maker reported a net income of $737 million, or 44 cents per share on revenue of $2.75 billion for the quarter, compared to a net income of  $748 million, or 45 cents on revenue of $2.76 billion in the same quarter last year. The company expects revenue of $2.55 billion to $2.75 billion for the current quarter, short of the average $2.71 analysts polled by Bloomberg estimate.

• eBay Inc. (EBAY) managed to slow the deterioration in its main online auctions and retail business for its third quarter ended June 30. The company reported a net income of $327 million, or 25 cents per share on revenue of $2.0 billion, compared to  a net income of $460 million, or 35 cents per share on revenue of $2.1 billion in the same quarter last year. Excluding one-time items, eBay earned 37 cents per share, a penny above the average 36 cents per share expected by analysts, according to Reuters estimates.

• Starbucks Corp. (SBUX), which closed several hundred of its stores last year, beat Wall Street expectations thanks to those cost-saving measures. The company reported a net income of $151.5 million, or 20 cents per share on revenue of $2.4 billion for the quarter ended June 28. That compare to a net loss of $6.7 million, or 1 cent per share on revenue of $2.6 billion in the same quarter last year. Excluding charges from its restructuring, the coffee chain earned 24 cents per share, besting analysts’ average forecast of 19 cents, according to Reuters estimates.

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