Ticker Shock: Wal-Mart Cuts Prices, Starbucks May Be Forced To Do Same

Glenn Curtis  Oct 01, 2008 11:15 am

Ticker Shock: Wal-Mart Cuts Prices, Starbucks May Be Forced To Do Same
 
Wednesday's top stories and stocks with potential to move.
 

 

Dunkin Donuts Vs. Starbucks (SBUX)
Dunkin Donuts said it's going to start selling lattes for 99 cents apiece during afternoon hours. The offer will reportedly run into early November. 

Okay, so this isn’t the biggest news story out there, but it sticks out because cost-conscious consumers could respond favorably. And that's to say nothing of the swift kick in the pants it could deal to nemesis Starbucks, which frankly doesn’t need any more problems right now.

Moreover, I think it could also lure some foot traffic away from McDonald's (MCD), which has focused a lot of effort on its coffee of late. Sure, the impact on Mickey D’s won't be as great as on Starbucks, but it shouldn't be overlooked. Investors have come to expect super- sized gains in same-store-sales. Any stumble could be a potential negative for the stock.


Hovanian (HOV)
Ara Hovnanian, the chief executive of the New Jersey-based homebuilder, appeared on CNBC this morning. He didn't speak specifically about his company, but offered up what I thought was a very sobering assessment of the housing market. 

No surprise, then, that he spoke of the need for a rescue bill - and the importance to soon after come up with something to stimulate housing.

The interview came across as honest, not as a platform to merely peddle homes, which makes me think twice about the likes of KB Homes (KBH), Toll Brothers (TOL) and Lennar (LEN) - at least for now.

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