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December off to rocky start on Wall Street

Tuesday, 3 Dec 2013 | 5:48 AM ET


A traditionally positive month is off to a negative start, with the major averages all dropping in December's first session, amid concern that stock prices have come too far too fast. The S&P 500 has not seen a December drop since 2007, and the month has historically registered the largest rise in stock prices.


Automakers will provide the only numbers of note today, with November vehicle sales set to be released throughout the morning. According to Edmunds.com, U.S. sales should be up by 4.7 percent from a year ago, with Chrysler Group leading the way with a 10 percent gain.


It's another light day for corporate earnings, with few companies of note scheduled either this morning or after the bell this afternoon.


Krispy Kreme (KKD) is among our stocks to watch this morning, with the doughnut chain reporting third quarter profit of 16 cents per share, excluding certain items, one cent above estimates. However, revenue was slightly short of estimates and the company gave fiscal 2015 EPS guidance of 71 to 76 cents per share, below the 77 cent consensus estimate. Krispy Kreme said international same store sales will likely decline despite growth domestically.


Yum Brands (YUM) reported flat November sales in China, its biggest market, disappointing investors who had hoped to see growth. China accounts for more than 50 percent of the restaurant chain's operating profit.


Apple (AAPL) has bought social analytics firm Topsy, with the price reportedly over $200 million. Apple wouldn't comment on why it bought the company, which analyzes Twitter data to determine current sentiment on a variety of topics. Separately, Fortune reports China Mobile is taking preorders for the iPhone 5S and 5C. China Mobile is the world's largest mobile phone operator, but has not to date carried Apple's iPhone.


JPMorgan Chase (JPM) and Goldman Sachs (GS) will be able to proceed with their resubmitted capital plans, after the Federal Reserve did not object to those plans.


CVS Caremark (CVS) will pay $4.25 million to settle claims that it failed to reimburse Medicaid for prescription drug costs that should have been paid for by private health plans.


Thor Industries (THO) reported fiscal first quarter profit of 68 cents per share, two cents below estimates, with revenue also short of consensus. The maker of recreational vehicles did see profit rise 33 percent from a year earlier.


Apple (AAPL) has bought social analytics firm Topsy, with the price reportedly over $200 million. Apple wouldn't comment on why it bought the company, which analyzes Twitter data to determine current sentiment on a variety of topics. Separately, Fortune reports China Mobile is taking preorders for the iPhone 5S and 5C. China Mobile is the world's largest mobile phone operator, but has not to date carried Apple's iPhone.


Tesla (TSLA) said German regulators reviewed recent Model S fires in the U.S. and decided that no measures were necessary. U.S. regulator NHTSA is currently in the midst of its own probe of those fires.


BP (BP) won an appeals court decision, as it seeks to avoid payment on certain 2010 Gulf oil spill claims that it said were not traceable to that event. The ruling said a lower court had erred in approving the payout formula for spill claims.