they both like starbucks. there is a big difference between giving a stock a buy rating and then saying its momentum is slowing and rating it a buy while you predict a huge wave of catalyst. let's start with the more bearish case. analysts think starbucks may be trading sideways in the near term. this is research saying they are ordering a decaf. what's the problem? ubs did the consumer panel analysis. they are breaking a modest slowdown in domestic same store sales during the first two months of the quarter. they see same store sales growth for the quarter. not super fantastic or terrible. certainly better than most retailers. not what you want to see if the stock is going to go higher. ubs cut numbers for starbucks, but that's because the company itself cut the earnings in the last week. starbucks shaved a penny off because of the cost of the $100 million acquisition of a small bakery not much different from panera bread. and they are concerned as it seems almost everybody is that starbucks's european busine

let's say starbucks drops 2 bucks tomorrow.u know why someone might say something negative. what's the right thing to do with starbucks, which was up nicely today? first of all, both ups and opco do rate the stock a buy. they both like starbucks, but there's a big difference between giving a stock a buy rating and saying its momentum is slowing and rating it a buy while you predict a huge wave of catalyst. let's start with the more bearish case. ups thinks starbucks may trade sideways in the near term. they're taking the pedal off the gas and ordering decaf. what's the problem? ups did this analysis and they predict a slowdown during the first two months of the third quarter. that would be bad. starbucks has same-store sales growth of 6% for the quarter. not super fantastic or terrible early but better than most retailers out there. not what you want to see if the stock goes higher? ups cut numbers for starbucks, but that's because the company itself cut the earnings guidance. starbucks, the cost of $100 million of a small bake

came up but starbucks finished higher. are they vulnerable? >> when i was looking at the universe of potential names that are correlated to the high end consumer, starbucks is the first on the list. one of the things that got me thinking about, nike and starbucks traded in lock step. that's been a recent divergent. they made all time highs in april and may and sold off. starbucks exposure has 30% exposure outside of the united states. they trade 28 times next year's earnings. if there's any holes in that argument for next year this stock will be revalued and going to go lower. you mentioned it closed up two plus percent. it was lagging most of the day. to me this is one where i think it can be very vulnerable and we get a sense for what global growth looks like. >> dan is cautious. buying a put spread. we use the structure a lot. this is a bearish strategy where you buy one put and buy another one to stretch your cost. you want it to fall. that's where your profits capped. >> i looked out to august. it will catch their sec

tonight, big bucks in starbucks? how would you like to make four times your money in just two months? it is a super trade that could right your portfolio and we will show you how you can make money, too. and talk about a best buy. a trade that could pay you to buy best buy stock in hopes of a buy out. and why were all the options traders buying steel calls. the action begins now. >> live from the nasdaq, new york city's time square. these are the trainers here. we will get to those in just a moment. but we have got talk about the market. an eu summit giving a huge boost to banks. how do you profit from the volatility. >> it was quite gidy in a lot of ways. for them to close the quarter on the dead high of the day, it seems slightly artificial. seems slightly window dressing on what was a bad quarter overall. really good in q1. i am a bit skeptical because it did feel a little bit artificial. when i looked up on the screen. >> i think that's a great point. what was taking stocks up was a lot of hope. hope that the eur

. >> did starbucks catch on to what you were doing? >> not a single time. >>> chris moor and a bunch of his biker buddies were out for a memorial day ride near dallas, texas. this dash cam is from a sheriff's deputy car showing part of the same group of guys. you see a few riders taunting the deputy. >> what are they thinking? >> i guess the mentality is to go after one. chris moor says he wasn't part of any of that and his camera appears to prove that. >> i was not. i have not committed a crime and you cannot take my personal property. >> at first chris doesn't get arrested but this is what gets him arrested. >> you are under arrest for your license plate getting obstructed. >> it does seem excessive and so does the interaction with the deputy. >> you're kidding me, man. >> you'll see the officer carry away his helmet and you catch a glimpse of the bike in the background and you can see the license plate. he has one more interaction with the deputy before he gets shoved in the car. it appears that the door was on his foot. chris moor'

((break 3)) 3 starbucks has alwwys been a - haven for coofee lovers.company will turn its attention to tea. alison offering. 3 --reporter pkg-as follows -- starbucks is branching out from its coffee roots. the java giant will open its first brand. no word on the name, is and so far, only one locationn is planned. tea enthusiasts will be able to pick from 80 varieties of tea. but if none of those do it forryou-- no probllm. the store ill have a blending station where customers can make their own combination. the new tea bar iss't meant for grab-and-go service. starbucks wants tte atmospherr toobe more llke a wine tasting-- with ccstomerr talking about the flavor and bbend of the teaa this is part of a bigger push to expand beyond coffee. the company opened its first juice bar backkin march. and earller this month-- starbucks announced plans to buyya san francisco bakery chain. the coffee giant hhs also delved into k-cups-- and will start machine lattr this year. i'm alison kosik in new york. -----end-----cnn..sript----- jeopardy host.. alex trebek is re

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i think it fits in well with the starbucks branding. but certainly they're not going to be making burgers any time soon. i don't think they're going to overextend themselves past what they've done now. >> i didn't say, sam, this was a bad deal. what i was -- it's 100 million bucks. i don't know le boulanger. i don't know their business model, profits, whatever. i'm wondering why they feel the need to evolve so quickly in a short period of time. they still have a lot of organic markets to grow into. >> it's not quickly. this is a long-term process. >> i've got the answer. buy rim and start celling cell phones. >> that's an excellent diversification strategy. >> you get a free venti latte. or a free blackberry with a purchase of a venti latte. doesn't this put them in too much competition with panera? instead of being unique they're starting to merge. >> maybe putting panera in competition with them down the road. way down the road. >> should panera be worried about this, sam? >> panera has their own customers. they have a customer base.

starbucks makes a big bite. popular form00, a a democratic president is trying democratic current it reelected. hosted three fund- raisers. his message, obama as did the economy through a miserable situation. -- has steered the economy a miserable situation. the president and mitt romney dead heat in virginia. >> in a matter of hours, jury selection in the trial involving scandal at penn state is scheduled to begin. sandusky faces more than 50 accounts. this comes as reports indicate that sandusky is under federal by the fbi.n he has always maintained his innocence. >> a maryland man is behind bars for killing and cannibalizing his roommate. >> the ticking time bomb. also, starbucks goes shopping. metro expect us past the airport? metro expect us past the a[ male announcer ] this was how my day begegan. got my bearings. ♪ a little bird told me about a band. ♪ an old man shared some fish stories. ♪ ooh, my turn. ♪ she was in paris, but i still got to see her. we talked for hours. ♪ everyone else buzzed about the

not the american governments. >> as mentioned before, starbucks with the $100 million cash deal is starbucks it will move breads and bake goods for chains like panera. keith signer covers both starbucks and panera bread. great to have you with us. why wouldn't starbucks just have a partnership or develop its own brand? why does it go out and buy bay bread? >> i think what you've seen, evolution fresh from the juice platform. it's a move through to capture the full economics of the chain. 23 you take back to the the fruit and nut bars that you can buy in a starbucks, if they had the hind site to go back, look at that company and possibly purchase it and roll those out and turn those into a legitimate brand, it makes a lot of sense. the other thing is by controlling it themselves, they have the total say over how to market it, position it, price it. and also roll it into a consumer price product. >> why does it need to be goods in order to make its offering more full. already, margins are quite good. they're turning around u.s. same store sales. >> they're not actually going out to make goods.

it includes collection. >> next daytraders starbucks, report that suggests momentum trade over for starbucksvid palmer analyst, he covers them, joins us on the call line. >> our view is starbucks stock may move sideways in the near term as a result of modest slowdown for same-store sales growth and modest provisions happening now. that's partly a result of weak europe demand the company highlighting and partly a result of the fact that the analysts are coming to grips with the fact that coffee price relief is a little bit later than we would have thought just a few months ago. >> i'm trying to get a handle on the size of the move you're anticipating. i'm assuming this is not a short as far as you're concerned. >> no. it is not. we're sticking with that. this is a buy rated stock. we love it's trading 22 times calendar 13. 20% average growth is what we're forecasting the next few years. at this capsize, a big company like this is going to outperform at that growth, multiple, one times pe to growth. the problem is in the near term those negative eps and modest slowdown in americus division, a

go ask howard schultz at starbucks. insiders do sell for many different reasons, you can't exactly get comfortable with super high speed store growth, since we have seen that wreck many a good company. but i told you last week's game plan, that if ulta reported terrific numbers it would allow a whole lot of other growth stocks to go higher, and ulta could be the umbrella ella which protects growth investors and allows them to buy aggressively with less worry and that's exactly what happened today. chipotle roared nine, panera, remember we were worried about starbucks, they rose 3. monster beverage, $1.32. whole foods ran $2.44. ralph lauren, gained two bucks. problem with the action is nuts. how could that be? this chain of beauty salons have that kind of power? you have to understand how growth investing works. a stock like ulta blows away the numbers, and the mutual funds start reaching for all their favorite stocks, multiple expansion. they feel emboldened to take everything that sells at a premium multiple. that may

goods at their starbucks stores. the reason is is that starbucks said so many of their customers are saying we want more really good baked items. in fact, one and a half billion dollars is spent on food at starbucks last year. so it's big deal. >> i believe it. i'm all for them getting some new baked goods in there. the more to choose from the better. >> the cake pops and the mini treats but we just want something else. >> right. time to switch it up a little bit. thank you. >>> coming up next, another battle line drawn between d.c. and the federal government. what is happening today adding fuel to the fiery debate over illegal immigration. >>> also ahead. what a celebration. a long list of stars hit the stage to honor queen elizabeth. we are live in london all morning on the final day of her majesty's diamond jubilee. we are back after this. on average 5,000 people a day switch from cascade to finish - over two million so far. with finish quantum you get incredibly clean, sparkling dishes without rinsing first. see

according to starbucks, rego skills as a baker will be tapped to bring more pastry items to starbucks. >>> voter turn out for this election may set a record for the lowest ever. exclusive new ktvu field poll estimates no fewer than 1 million people will cast a vote. the turn out would be a steep drop from 2008 when the turn out was 58%. but the california primary was held on super tuesday back in february. the previous low in a presidential year is 41.9% set back in 1996. >>> the bay area seems to reflect that apathy from the voters. robert handa reports from the south bay where voter numbers historically run much higher but not this time. >> reporter: the machine workers from the registrar voters were busy sorting -- the 546,000 vote by mail ballots sent out and along with the field poll's prediction of 35% turn out statewide as one voter joked, apathy is running rampant. >> i want my voice to be heard and i do feel kind of bad that if the people don't come and vote because if they want to complain later they have no one to blame but themselves. >> it makes me believe that people hav

pastries could have to be worth $100 million the labor day area bakery chain just gobbled up by starbucksa dream come true for one kansas couple of all expense paid trip to the bay and when you see what they build in their backyard you understand why. >>> we have breaking news tonight snipers have taken up positions in a standoff with a suspected car thief who is barricaded inside a home after firing a step these 10 minutes ago we confirmed that the suspect is holding a hostage. and this is in the 500 block of high street marks there is there. {not just confirmed there is a hostage situation under way one suspect is in a home holding a man hostage. how street in a 80 now let me tell you how this all began. that's when a sheriff's deputies size stolen car he tried to make contact the card to got there three people in the car to them bailed out to the driver then drove just under a mile to where we are now too high and jensen that is the specific cross street and that is when he actually opened fire at the pursuing deputy. >>> at the intersection of jensen has strayed the suspect back to a

this is starbucks' biggest move outside of coffee and seems to be a direct shot at panera.'d like that. >> very nice. what is it? >> la bulange. >> spell it -- >> no. >> that's what i thought. >>> d.c. could actually number jeopardy of losing an art museum apparently. the corcoran gallery of art could be moving. the "washington city" parent reporting the gallery may sell its building on 17th because of funding issues and leadership change. the paper also claims the corcoran could be part of alexandria's plan to redevelop its waterfront, although the corcoran did tell the "washington post" that is not necessarily in the offing. >> it would be a huge loss to d.c. i love the corcoran. beautiful exhibits there. >> the problem is it would cost $130 million to update the current building they're in. more than 1 her her yea00 years. they're testing the waters -- >> there were huge art supporters in this community, too. i wonder if someone will step up. >> the building is so small, they can't display -- they can only display 3% or less of the collection -- >> that's what i like abo

. >> starbucks is saying yes to french baked goods. linda bell has bloomberg news from new york. >> we are talking about starbucks continuing to look for ways to make money without the reliance of its signature products, coffee. it has agreed to buy a company that makes baked goods. it plans to expand the french bakery brand. food is a critical component of the core starbucks business and it makes up nearly one-fifth of its u.s. sales. schools turning away from pink slime. the department of agriculture says the vast majority of the schools in the country that participate in the national school lunch program have opted to order a ground beef without the product known as finely textured beef. although the product has been used for decades and federal regulators say it is safe to eat, the filler has been highly scrutinized. affirmative action violations by federal contractors are read a nine-year high. i will have more details on that in the next hour. live at bloomberg headquarters in new york, linda bell reporting for abc 7 news. back t

starbucks latest deal didn't go over well. the company announced a $100 million buyout of a small chain of san francisco based company. shared fell 2.8. after the close tonight a separate deal. this time with starbucks and coinstar opening up coffee kiosks selling coffee for one dollar and it added another 3.5% after the closing bell. rising to over $61 per share in after hours action. watch this one tomorrow. the new vending venture with starbucks expands coinstar beyond the machine and red box dvd kiosks. and today was the lates latest indication of a weakening industry. it was weaker than anticipated. shares were falling fast today off 9.7%. lowest closing price since november. volume increased almost five-fold. in worries about industrial supplies hit others and mnc almost down 5%. yesterday we had economic data pointing to slowing factory orders.Ñi our exchange traded fund mark flash the top five most actively traitedwe%úx etfs tracking fund. that's tonight's market focus. >> tom: the define issue for the election year is

yesterday starbucks announced a $100 million cash deal to buy the 19 bakery chain. o'bannon hall when runs went of the sense >>mark: a man shot and killed in a big district yesterday morning. he was driving on monday avenue when he was shot in the head. he was transported to set francisco general where he was pronounced dead. no suspects have been identified. half as san francisco judge has delayed the sentencing for edward ramos convicted killing a man and his two sons in 2008. his attorneys for and ask for a new trial because the jury appeared to be confused before convicting him of murder. ron rothstein >>mark: a freshman senator attacked a senior in the hallway as a group watched his and prevented others from breaking up the fight. this comes on the heels of a bullying incidents in vallejo and concord. the officials said they are alarmed at what happened at the hospital -- high- school and then to review their policies. >> we really want to take a look at what we're doing in our schools that allows for students to learn how to solve problems in ways other than u

will starbucks get burned by that deal? sat on this show and repeatedly recommended starbucks. >> i still love it. as a matter of fact, i did rotating to day. i sold some up side calls. i bought them back. the stock dipped down a couple dollars and sold the next to to july 55 calls. trying to collect that dividend. i like this stock. i like what they're doing. i think shultz has done a lot of great moves since taking back over as the ceo. they've become far more efficient. some of the growth prospect they've done overseas and they've done a lot of the right moves. this is another one that is going to add to the bottom line. >> this isn't veering cortez away from the core? starbucks made that mistake in the past. >> it seems like it might be. but this is a tiny deal. i don't mean -- >> $100 million. >> this is not a reason to own it or not to own it. i do give you a good reason to own it and i do. it is falling commodity prices and coffee in general. if you look at jo, it lost half of the value in the last year. that is fabu

coffee giant starbucks is look to expand its menu.ans to buy a california-based french bakery chain to expand its food. will start replacing starbuck's counterfood early next year and will start nationally in the years ahead. about one-third of the purchases made at starbucks in the u.s. do include food items already. the deal would position starbucks to be more competitive in the restaurant industry. >> we got to go west till when? >> a couple more years before it gets here. >> now we want a krcroissant. >> e. coli being blamed in the sudden death of a 6-year-old boy. >> coming up tonight at 6:00, somebody shot a man in the middle of the road. we'll tell you about that. a cancer blood test could help predict future for some patients. and venus transit they're calling it is just moments away now. none of us will be here to see it when it happens the next time. [ female announcer ] with xfinity, you can always expect more. like more on demand shows and movies than ever. and more ways to discover them too. plus more speed from america's

how much can starbucks do and how much can other companies do?ging them and following up to make sure that it happens? >> well, i think, you know, you giving me the opportunity this morning to speak about this is one of the things i'm trying to do. i think many companies are doing the right thing. you were right before by saying that there's about $2 trillion sitting overseas that should be repay the try eighted and come back to the u.s. here's what i'm saying. it's very simple. we all have a sense that the country is going in the wrong direction. we can't wait for washington and the level of ideology that is going on to saddle the country with a direction that we know is wrong. as a result of that private citizens must recognize this is an opportunity to embrace citizenship over partisanship and recognize that we, too, can make a difference. what i'm saying to not only business companies and business leaders, that it's obvious to me that starbucks is the kind of company, there's many, many others, that can make a difference and east liverpool is

starbucks ceo howard schultz will tell you.t and that project this morning. >>> also, what about that ban on large, sugary drinks here in new york? what does he think about that? we'll find that out as well. >> announcer: "cbs health watch" sponsored by bayer aspirin. take charge of your heart health at iamproheart.com. my brother doesn't look like a heart attack patient. i'm on a bayer aspirin regimen. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. i'm a fighter and now i don't have that fear. so ditch the brown bag for something better. like our bacon ranch quesadillas or big mouth burger bites, served with soup or salad, and fries. starting at just 6 bucks, at chili's. to deposit checks at the nearest citibank branch. ♪ like this one. ♪ or this one. ♪ or, maybe this one. ♪ but when it's this easy to use citibank mobile check deposit at home...why would he? ♪ woooo! [ male announcer ] citibank mobile check deposit. easier banking. every step of the way. ♪ >>> the chairman and ceo of sta

you think the starbucks move is for us to stretch our french accents?ulange -- >> although in french it would be la bulangerie. >> you say it well. >> thanks. >> thank you very much. >> bye-bye. >>> right now a live look overseas. the queen attending a private reception at mansion house. then lunch at westminster hall. later today, there will also be a formal royal carriage procession through the streets of london. 5 minutes ago the service -- 15 minutes ago the services wrapped up. festivities continuing there after -- around the noon hour in london. a service of thanksgiving that happened at st. paul's cathedral, symbolizes a rededication of the queen to her people. a chance to renew the pledge between citizens and the monarch. ♪ >>> last night some of music's best paid tribute to queen elizabeth ii. 10,000 people got to see this star-studded concert on a specially made stage outside buckingham palace. there were performers from each of the queen's six decades on the throne. >> what a concert. can you imagine? stevie wonder singing "isn't she lovely."

the deal expands starbucks focus on food items. while shares bucked the weak market today with their over 3% gain during the regular session, after the announcement, the stock fell 2.5% from this closing number. during the session, starbucks announced plans for a new initiative. but after the la boulange announcement, the market appeared initially unimpressed. airline stocks were hit after one of the biggest carrier in the u.s. saw its revenue growth slowed last month. that hit delta stock, losing 11.5%. united continental fell more than 7.5%. and discount carrier southwest fell almost 4%. in our exchange traded fund market flash, growth funds found the buyers. the tracking fund for the nasdaq 100, and the emerging markets e.t.f. were higher, with the rest of the most actively traded funds down. and that's tonight's "market focus." >> tom: any indication it could be a long hot summer for invest, slowing u.s. economy, europe in turmoil, the election coming up, brings us to tonight's word on the street, survive, debra borchardt, you

people who liked starbucks on facebook and friends bought something at a starbucks 38% more often friends of fan of target were 19 percent more likely to buy than fans who were not friends. and it had a rough road and tonight it's below $28. the commission report was released the facebook's quiet period came to an end. gian fulgoni is the co-founder of comscore. welcome back to nbr. you found unpaid advertising for starbucks on facebook for instance led to more in-store buying. doesn't sound like of of an endorse manimen endorsement to pay for advertisement. >> they built an electronic version of word of mouth which has long been known to influence people's behavior and choices of brand. so a brand can communicate the message to their fans and to theiren from and the the average fan has 100 friends and you have that and the persuasion because fundamentally i think a message that comes from a friend of yours is more persuasive to you than if the message comes from the brand. >> tom: gian, is that the issue for facebook to take your results the word of mouth and essentially begin to charge