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The Nasdaq Now: Crumbs Bake Shop Toasts Deal With Starbucks With Equity Surge

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Fossil was another big gainer.

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MINYANVILLE ORIGINAL Stronger-than-predicted corporate earnings continue to power US stocks, with the Nasdaq Composite (^IXIC) rising 32.90 points (1.10%) to 3,022.81 as of 12.12 p.m. EDT. That brings the Nasdaq's year-to-date increase to a healthy +16.07%. Compared to one year ago, the index is also up 19.40%.

Topping the list of gainers is Crumbs Bake Shop (CRMB), which is up an impressive $1.29 (62.93%) to $3.34. After the close on Monday, the national bakery chain announced that it has struck a deal with Starbucks (SBUX) to serve the coffee giant's drinks at its bakeries. Crumbs outlets in New York will be first to get Starbucks drinks in September before a wider rollout proceeds.

Another leading gainer on the Nasdaq is Fossil (FOSL). The fashion accessories maker surged 32.07% (+$22.38) to $92.17 after it beat expectations in second quarter earnings. Earnings per share came in at $0.92, compared to the consensus estimate of $0.79 per share compiled by S&P Capital IQ.

For the full year, Fossil forecast profit of up to $5.34 per share, which was also above the analysts' estimate of $5.27.

NII Holdings (NIHD) is the biggest loser in intraday trading. The wireless communications provider plunged $2.04 (25.25%) to $6.04 after cutting its full-year revenue forecast by $1 billion to $6.1 billion. It reduced its operating income forecast for the year from $1.4 billion previously to $1 billion. Additionally, NII also reported a quarterly loss, with second quarter revenue dropping 15% from a year ago to $1.5 billion. Its net loss came in at $103.5 million, or $0.60 per share, compared to net income of $122.7 million, or $0.73 per share, one year ago.

Leap Wireless (LEAP) was another victim of disappointing earnings, down 19.75% to $4.43. Late on Monday, the prepaid mobile phone service carrier reported that it lost $41.6 million, or $0.54 per share, on revenue of $786.8 million in its fiscal second quarter. Leap also lost 289,000 customers in the quarter, bringing its subscriber total to 5.9 million.

Analysts from Robert W. Baird and Hudson Square Research cut their ratings on Leap following the poor earnings report.

Leap, which rivals MetroPCS (PCS) for the prepaid market, was the first big company to offer a pay-as-you-go iPhone in June. Under its deal with Apple (AAPL), Leap would pay $900 million over three years to carry the iPhone.

Twitter: @sterlingwong
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No positions in stocks mentioned.
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