On November 3rd, Starbucks (SBUX), the Seattle-based coffee retailer, reported solid fourth-quarter earnings. The market reacted favorably as Starbucks also announced a December dividend and an expansion plan.

The company's annual earnings increased to $1.62 per share, up 31% over the previous year. Starbucks reported annual net revenue of $11.7 billion, a record for the company. Revenue increased 9% from the previous year. In the fourth-quarter, Starbucks earned $358.5 million, or $0.47 per share (an increase of 27% per share).

Howard Schultz, Chairman, President and CEO of Starbucks commented on the earnings report, "Fiscal 2011 was an extraordinary year in which Starbucks reported record earnings every quarter, and for the full year, and very strong comp store sales growth all around the world." Schultz also stated, "We have never been better positioned to go hard and go fast after the tremendous opportunity that lies ahead in 2012 and beyond."

Starbucks announced plans to open 800 new stored around the world in fiscal year 2012, including 150 in China. The company said it expects to turn a profit of $1.75 to $1.82 per share in 2012.

Shares of Starbucks (SBUX) finished at $44.21.

E-Mail Coupon Giant Groupon Goes Public

Last week, Groupon (GRPN) made its debut as a publicly-traded company and, in early trading, the company's stock soared. Groupon is an online retailer that emails consumers deep discount coupons for goods and services at local retailers and then makes its money by taking a portion of the retailer's sale.

Groupon is viewed as part of the growing social media market. Other social media companies, such as LinkedIn, also debuted this year. As with Groupon, the public interest in LinkedIn drove the stock to big gains when the company went public in May.

According to filings with the Security and Exchange Commission, Groupon's revenue in the third-quarter of 2011 was $430.2 million together with net losses of $10.6 million. This marks a significant improvement from the second quarter of the year in which the company reported losses of $101.2 million.

Groupon reported it had nearly 143 million subscribers who receive email offers from the company, raising the possibility of Groupon becoming a powerhouse in Internet marketing. Its subscriber base is up from 152,000 in June 2009.

Groupon (GRPN) finished the week up at $26.05 per share.

Market Eyes CBS after Unfavorable Earnings Report

CBS Corporation (CBS.A and CBS) reported its earnings for the third-quarter ending in September. The company reported $3.37 billion in revenues, up 2% from the same period last year, but less than the projected revenue of $3.44 billion.

CBS includes the CBS television network and studios; CBS radio; cable channels Showtime Networks, Smithsonian Networks, and CBS Sports Network; publishing giant Simon & Schuster; and, along with Warner Bros. Entertainment, is part of a joint venture in the CW network.

The broadcast giant reported net earnings for the third quarter of $338 million and earnings per share of $0.50. The cumulative reported earnings for the first three quarters of the year were $935 million, up from $441 million over the same period last year. Earnings per share over the January through September period were reported at $1.36 per share, up from $0.64 per share over the comparable period in 2010.

Shares of CBS Corporation (CBS.A and CBS) ended the week at $25.56 and $25.17, respectively.

The Dow started the week at 12,231 and closed at 11,983. The S&P 500 started the week at 1,285 and ended at 1,253. The NASDAQ started the week at 2,737 and finished at 2,686.

Treasuries started the week higher as concerns reignited about the European economy. Both Italian and Spanish bonds yields rose as the end of the Group 20 meeting in Cannes brought no solution to the European debt crisis.

Treasuries fell throughout the week, in part, because of news that Greece had cancelled a referendum vote that could have prevented the implementation of austerity measures in Greece in exchange for EU financial support. Greece's Prime Minister, George Papandreou, stunned European leaders on Monday by calling for the referendum.

Papendreou's announcement put European bonds under pressure, driving the market to U.S. treasuries. Italy's bond yields climbed sharply; the Stoxx 600 Index ended the week down; and the Euro also fell 2.5% compared to the U.S. dollar over the course of the week.

Also impacting the markets this week, the Labor Department reported employment continuing to trend up in October (up 80,000). The unemployment rate was little changed at 9.0%. Employment in the private sector rose, with modest job growth while government employment continued to trend down.

The 10-year Treasury note yield finished at 2.04%. The 30-year Treasury note yield finished at 3.10%.

Freddie Mac released its weekly Primary Mortgage Marketing Survey, showing average mortgage rates declining sharply this week. Investors rushed to U.S. Treasury bonds amid concerns over the European debt market, driving the 30-year fixed rate to its second lowest reading in history.

The 30-year fixed-rate mortgage (FRM) averaged 4.00%, down from last week when it averaged 4.10%. Last year at this time, the 30-year FRM averaged 4.24%. The 15-year FRM this week averaged 3.31%, down from last week when it averaged 3.38%. One year ago at this time, the 15-year FRM averaged 3.63%.

"Concerns over the European debt market drew investors to U.S. Treasury securities, lowering bond yields and mortgage rates," said Frank Nothaft, Freddie Mac Vice President and Chief Economist. Nothaft noted that despite the unrest in Europe, there are signs of a slow, albeit "gradual" economic recovery in the U.S.

The Bureau of Economic Analysis reported the economy grew 2.5% in the third quarter, the strongest pace in a year. Consumer spending is also up, rising 0.6% in September, nearly threefold that of August. Finally, consumer sentiment, as measured by the Thomson Reuters/University of Michigan index, rose for the second month in a row in October to its highest reading since July.

The money market fund finished this week at 0.5%. The 1-year CD finished at 0.7%.