Nov. 13 - Summary: Record highs for U.S. markets on Macy's strong results; Cisco's revenue miss; Facebook gets thumbs down from Snapchat-WSJ; Starbucks's costly breakup. Bobbi Rebell reports.
U.S. stock markets moved to new highs after strong results from Macy's relieved some anxiety about the holiday season for retailers. Macy's stock jumped after it said business was getting better. The Dow and S&P 500 hit a new record, the Nasdaq also posting gains. But investors should tread carefully says S&P Capital IQ's Sam Stovall: SOUNDBITE: SAM STOVALL, CHIEF EQUITY STRATEGIST, S&P CAPITAL IQ (ENGLISH) SAYING: "We call ourselves bulls with a lower case b's . So when you say the word "aggressive" I would say, 'No, you don't really want to be an aggressive buyer at this point.' I think that you probably should be dollar cost averaging into the market so if we do end up getting a correction you can buy on lower prices." The moves come a day ahead of Fed Chairman nominee Janet Yellen's Senate Banking Committee hearing. In remarks released ahead of time, she said that the Fed has made significant progress, but there is more work to do and that economy is performing far short of potential. In Europe, however, stocks took a step back on concerns about uncertain central bank policies. After the closing bell, Cisco's reporting revenues that missed forecasts. The network equipment maker's profit also declined from the year ago period. Facebook got the thumbs down on an acquisition offer from mobile messaging start up Snapchat, which has been luring users away from Facebook, that would have valued it at $3 billion dollars. That according to the Wall Street Journal. It would have been an all cash deal and would have been the largest one ever for Facebook. Breaking up is hard to do and expensive for Starbucks. An arbitrator ruled is has to pay $2.76 billion for ending its grocery coffee deal with Kraft Foods about three years early. Starbucks had complained Kraft mismanaged the brand. The coffee chain is restating results for the latest quarter to show a loss but says it was the right strategic decision. Sprint is going to take a pass on an upcoming government spectrum auction of so-called H Block airwaves in January. That could leave the field clear for Dish Network to buy the spectrum. Shares of Potbelly jumped. The sandwich chain reported results that beat Wall Street forecasts. It was their first report since going public last month.