Market Focus

Starbucks

Starbucks reported earnings and revenue that matched Wall Street’s estimates. Its café traffic was strong during the holiday season, but its full-year guidance came in light. Still, shares popped initially after the close. Before the close, shares were up nearly two percent to $82.74.

Union Pacific

Union Pacific saw its shares pop after it reported fourth quarter earnings that chugged past estimates on higher prices and strong freight volumes. The railroad operator said crude volumes increased, despite oil’s price plunge, but management expects crude and fracking supplies, like sand, to be headwinds this year. Shares rose almost five percent to $119.83.

United Continental, Southwest Airlines & Alaska Airlines

Three airline stocks soared higher after reporting strong results today. United Continental, Southwest and Alaska Air all benefited from lower fuel costs. Southwest’s results beat on both the top and bottom lines. Alaska Airlines saw its profit nearly double and it hiked its dividend by 60 percent. United’s results actually missed, but it gave a bullish 2015 outlook. Shares of all three airlines popped. Southwest rose the most, up 8.5 percent. United and Alaska were up 4.5 percent.

Avon

Shares of Avon Products spiked on reports of deal talks. The door-to-door cosmetics company has held talks with a private equity firm about a possible transaction, according to that report. This speculation comes after a six year investigation into whether or not it bribed local officials in China. The stock was 4.5 percent higher to $8.66.

Lands’ End

Shares of Lands’ End went the other way after the apparel retailer said fourth quarter profit and revenue would come in below estimates. It blamed disappointing sales of cold-weather apparel during its peak holiday season. The stock plunged more than 17 percent to $41.97.

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