Radar Movers: Yum! Plunges 5%, Apple and Bank of America Edge Lower
Shares of Yum! Brands (NYSE:YUM) plunged nearly 5 percent in late afternoon trading. The company released preliminary profit results that were below estimates. Excluding items, profit came in at $3.24 per share last year, compared to an average estimate of $3.26 per share. Yum said there was a “significant impact” on sales in China, because of “adverse publicity associated with a government review of China poultry supply.” Shares of McDonald’s (NYSE:MCD) also traded lower on the news.
Apple (NASDAQ:AAPL) shares edged slightly lower in late afternoon hours, despite positive news during the day. The tech giant’s App Store has crossed 40 billion downloads and almost half of those came last year, the company announced on Monday. The numbers for December were also impressive, as the month saw a record two billion downloads.
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Bank of America (NYSE:BAC) shares finished the day in the red and continue to edge lower. The bank will pay Fannie Mae over $10 billion to settle claims over troubled mortgages. Under the terms of the settlement, BofA will give Fannie Mae $3.6 billion, while also spending $6.75 billion to buy back mortgages.
Shares of Walt Disney Co. (NYSE:DIS) dropped more than 2 percent on Monday. The entertainment company is starting to review cost cutting methods that include layoffs, according to Reuters. Improvements in technology and rising costs in sports rights is said to be the leading cause of reductions. “We are constantly looking at eliminating redundancies and creating greater efficiencies, especially with the rapid rise in new technology,” said Disney spokeswoman Zenia Mucha.
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