Saturday, December 1, 2012

Futures flat, Yum and Zumiez Plunging

Stock index futures (SPY) (DIA) are mostly flat ahead of the bell Friday, after the Commerce Department said consumer spending fell 0.2% in October, the first decline since May and worse than analysts’ expectations.

Among the big fallers in premarket trades is Yum! Brands Inc. (YUM) which late Thursday delivered weaker-than-expected earnings outlook for next year. Particularly hurting the Taco Bell, KFC and Pizza Hut parent was a fall in sales in China. Analysts reacted badly to the news, with Susquehanna and UBS cutting the stock to Neutral and Raymond James cutting it to� Underperform. The stock is down 8.3% at the latest.

Also falling are shares of Zumiez Inc. (ZUMZ), after the retailer’s latest quarterly revenues missed analyst expectations and it gave a gloomy outlook for the fourth quarter. Zumiez said November same-store sales declined 4.2%. The stock is down 8.1% right now.

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