In The News:

Fallin Sales… European Auto Sales continue decline hitting a two decade low. Why is this important..? People who feel confident in their own economic situation buy cars, when they don’t they fix up their cars and keep them a while. Looks like the road to recovery may be a long haul for the Euro zone.

Yahhhooo.. Yahoo reported better earnings Q2 however, ad revenue dropped 7%.  Lots of eyes were watching Yahoo earnings as Marisa Myers, Yahoo’s CEO, just completed her first year at the helm.

Buy,Buy,Buy.. China’s top search engine, Baidu, has agreed to buy 91 Wireless, the #3 app store, for $1.9 Billion.

Blame It On The Rain… Coca-Cola reported a 4% drop in sales for Q2. The major reason according to Coke… the weather. People buy less Coke when the weather is rainy than when it’s hot outside. The combo of unseasonable cool weather here in the US plus rainy conditions in emerging markets in India proved to be a negative atmosphere for sales.

Next.. Wireless giant AT&T is the latest to join into the unsubsidized phone option for its customers. Earlier this year, T-Mobile made the decision across the board to cute subsidizing phones to all their customers. AT&T customers have the option to select the “Next” plan:

  • No Contract to sign
  • Upgrade to a new mobile device or tablet once every year.
  • No subsidized phones, customer pays regular full price.
  • A 20 month finance plan to pay for your new toy

The move comes as AT&T along with other carriers tries to reduce billions of dollars spent on subsidizing devices yearly.

Roarin Goldman… Goldman Socks (aka Goldman Sachs) beat estimates for its Q2 profits doubling its profit. Huge gains from underwriting and growth in their own in-house investments helped propel the stock to a $ 3.70 EPS (Earnings per Share) crushing the analyst estimated $ 2.89 EPS.

Higher Prices… The Consumer Price Index (aka inflation index) for June ticked up 0.5% in June vs. 0.1% increase in May. The spike in June was the highest in five months.  Why is this important…? The index gauges the change in monthly prices of a predetermined basket of goods and services. If the index continues to goes up over several months it can be a sign of inflation.

Increased Production: Industrial Production, the raw volume of goods produced in the US by industrial firms such as factories, mines and electric companies, was up 0.3% in June.

In The Markets:

Asia: Asian markets closed Mixed Wednesday as the worlds eyes are now on Bernanke.

Europe: European stocks closed down on Tuesday after an unexpected drop in German Investor Confidence was reported.

US: Lack Luster earnings, fed speak, and anticipation of Fuzzy Face (aka. FED President Bernanke) speech on Wednesday caused stocks to snap their multisession winning streak. DJIA:  -32.41 15451.85   NASDAQ: – 8.99 3598.50 S&P 500: -6.26 1676.26

In Dinner or Drink:

To help Coke with their sales issue we choose Dinner/Desert. This has been my all time favorite cake recipe my entire life. It is amazing.

Coca-Cola Cake

Cake: 

2 cups sugar

2 cups all-purpose flour

1 1/2 cups small marshmallows
1/2 cup butter or margarine
1/2 cup vegetable oil
3 tablespoons cocoa
1 cup Coca-Cola®
1 teaspoon baking soda
1/2 cup buttermilk
2 eggs
1 teaspoon vanilla extract

Frosting: 
1/2 cup butter
3 tablespoons cocoa
6 tablespoons Coca-Cola
1 box (16 ounces) confectioners’ sugar
1 teaspoon vanilla extract
1 cup chopped pecans

Preparation

Preheat oven to 350 degrees.

  1. In a bowl, sift the sugar and flour.
  2. Add marshmallows.
  3. In a saucepan, mix the butter, oil, cocoa and Coca-Cola. Bring to a boil and pour over dry ingredients; blend well.
  4. Dissolve baking soda in buttermilk just before adding to batter along with eggs and vanilla extract, mixing well.
  5. Pour into a well-greased 9- by-13-inch pan and bake 35 to 45 minutes. Remove from oven and frost immediately.

To make frosting, combine butter, cocoa and Coca-Cola in a saucepan. Bring to a boil and pour over confectioners’ sugar, blending well. Add vanilla extract and pecans. Spread over hot cake. When cool, cut into squares and serve.