Before the bell: Stocks could bounce back; retail sales, TM, BBY on tap Unilever (NYSE: UL) is the world's second-largest maker of food and detergent, so you would expect the company to hurt with rising commodity prices. But Unilever has been proactive and has raised prices 4.8% in the quarter to offset its rising costs. In fact, the company said revenue will beat its forecast for the first time in six years on increased prices and sales of Dove soap, Hellmann's mayonnaise and Lipton tea. First-quarter net income climbed 33%, exceeding analysts' estimates.
As expected, April retail sales have so far indeed been strong, although there are some ares weakness is seen.
- Costco (NASDAQ: COST) shares are up 1.2% in premarket trading after the warehouse club retailer said April same-store sales increased 8%, beating analysts' expectations of 6.1%.
- Wal-Mart Stores Inc. (NYSE: WMT) shares are also higher in premarket trading, up 1.8%, after the world's largest retailer, said same-store sales climbed 3.2%, beating the 2.1% forecast by analysts. Staying with Wal-Mart for a moment, it said it plans to invest millions in Canada and open more supercenters.
- The more luxurious items, though, such as lingerie sold at Limited Brands (NYSE: LTD) have seen a slowdown as the company said that April same-store sales fell 5%, falling short of the 2.3% sales decline analysts had anticipated.
There was also some good news from Crocs Inc. (NASDAQ: CROX), which reported better-than-expected quarterly results after the close Wednesday with revenue climbing 40%. The plastic shoe maker affirmed its second-quarter and 2008 outlook and seen its shares jump 16% in premarket trading.
Meanwhile, as Microsoft Corp (NASDAQ: MSFT) keeps telling us it has no plans to make another approach for Yahoo Inc (NASDAQ: YHOO) after it pulled the plug on its $47.5 billion bid earlier this month, some say it could be interested in increasing its stake in Facebook.
In more earnings news: AIG (NYSE: AIG) is expected to report a first-quarter loss of 76 cents a share, when it reports after the close today. But Hansen Natural (NASDAQ: HANS) has already reported disappointing results after Wednesday's close and is seeing its shares fall 18% in premarket trading.
And Apple? That company isn't resting and Wednesday it signed a deal with America Movil SAB to bring the iPhone to Latin America.
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