Yahoo Finance Greece's new talks; AMD plummets; Starbucks' price hike
It's like deja vu all over again for the global financial markets as the Greek debt crisis and the sinking Chinese stock market dominate the headlines.
In Brussels, European leaders are meeting to discuss another bailout for Athens after Greek voters over the weekend rejected new austerity measures demanded by creditors.
Before the U.S. markets opened, Yahoo Finance Senior Columnist Michael Santoli noted the so far muted stock (^GSPC) response here to the ongoing Greek crisis really wasn't a surprise.
"If you didn't see on Day 1 after the no vote some kind of contagion move throughout other markets, I don't think the market on Day 2 you're going to see that develop," he said.
However, later in the morning, Greek jitters returned, sending the major indexes lower and pushing the S&P 500 negative for the year.
When it comes to China, Santoli feels U.S. investors need to watch...but not panic.
"We should be concerned but only to the extent that it could bump up against broader economic trends," he explains.
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AMD sinks on warning
Here are some of the stocks the Yahoo Finance team is following for you today.
Advanced Micro Devices (AMD) shares are getting crushed this morning. The chipmaker is warning second quarter revenue will fall 8%, much more than previously forecast. In addition, AMD expects gross margin to come in below expectations. The company blames a slowdown in PC sales.
Fitbit (FIT) shares are jumping in early trading. An RW Baird analyst initiated coverage on the exercise device company with a price target of $52. That's almost a third higher than yesterday's closing price of $40.19. Shares of Fitbit are double their IPO price set back in December.
Syngenta (SYT) is also in focus. Monsanto (MON) CEO Hugh Grant tells a Swiss newspaper his firm might consider boosting its $45 billion bid for the agro-chemical company. Syngenta has rebuffed Monsanto's unsolicited offer, calling it inadequate.
Advance Auto Parts (AAP) is on our watchlist. The car parts retailer is being added to the S&P 500 index. It will replace Family Dollar Stores once its acquisition by Dollar Tree (DLTR) is completed.
Starbucks (SBUX) shares are moving in early trading. You're paying a little bit more for your cup of Starbucks this morning. A price hike of about 1% overall takes effect today. That means the cost of a typical cup of joe will go up a dime...making the average price nationwide for a "Venti" $2.45.
American Apparel woes
Shares of American Apparel (APP) fell 8% yesterday after the struggling retailer announced a new cost-cutting plan, which includes closing stores and laying off workers. The company has faced losses over the past five years, and is seeking to save $30 million.
As share buybacks and dividends are rising at a steady clip, so is CEO pay. According to data compiled by Bloomberg, many non-financial U.S. companies base CEO pay on earnings per share, which means CEO wallets get a boost when businesses dole out cash to investors.
