Services Sector Review: Google Wallet, Cereal Sees Q1 Decline

Google Inc. (NASDAQ:GOOG): Google (NASDAQ:GOOG) has been pressuring app and mobile game developers to use Google Wallet, its pricier in-house payment service, as it attempts to emulate the financial success of Apple’s (NASDAQ:AAPL) iOS platform, Reuters reports.

The shares closed at $600.25, down $6.89, or 1.13%, on the day. Its market capitalization is $195.16 billion.

Medco Health Solutions (NYSE:MHS), Express Scripts, Inc. (NASDAQ:ESRX): The FTC seems increasingly unlikely to block the merger of Express Scripts (NASDAQ:ESRX) and Medco Health (NYSE:MHS), but the government may still impose conditions on the deal amid concerns, the Wall Street Journal reports, citing people familiar with the matter.

MHS shares closed at $68.56, up $0.91, or 1.35%, on the day. Its market capitalization is $26.61 billion. ESRX shares closed at $54.18, up $0.9, or 1.69%, on the day. Its market capitalization is $26.27 billion.

Amazon.com, Inc. (NASDAQ:AMZN): In Texas Instrument’s (NYSE:TXN) Q1 mid-quarter update call, which followed the company’s announcement that it was cutting its EPS and revenue guidance, TI’s VP of investor relations said demand for its OMAP processor is lower “as our customers are now rationalizing both their expectations for ongoing demand, as well as the associated inventory,” according to CNET. Some analysts interpreted the remarks as a sign that Amazon.com (NASDAQ:AMZN) is scaling back its orders of the processors for its Kindle Fire. In early morning trade, Amazon shares are down $3.26, or 1.74%, to $184.38.

The shares closed at $184.32, down $3.32, or 1.77%, on the day. Its market capitalization is $83.88 billion.

McDonald’s Corporation (NYSE:MCD): Industry-wide ready-to-eat cereal category volumes declined almost 6 percent in Q1, based on information from Nielsen that does not include data from certain retailers including Wal-Mart Stores (NYSE:WMT), Post said. Post management believes the category volume decline was primarily the result of increased competition from substitutes such as quick service restaurants and other breakfast items including Greek yogurt.

The shares closed at $96.84, down $0.12, or 0.12%, on the day. Its market capitalization is $98.64 billion.

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To contact the reporter on this story: Stella Mariz at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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