Market Report: Coffee Prices Set To Increase as Stocks Fall
COLUMBIA - This week, stocks fell the most since January as traders continued to worry about tension in the Ukraine.
The Dow Jones Industrial Average fell 2.35 percent this week to finish at 16,065.67, and the NASDAQ fell for the first time in six weeks to finish at 4,245.40. Despite positive national economy news, the S&P 500 also finished down, shedding 37 points to close at 1,841.13, a 1.97 percent drop.
Target fell 2.3 percent this week as the company announced its data breach could be worse than expected.
In its annual 10-K filing this week with the Securities and Exchange Commission (SEC), the retailer said their investigation is ongoing and it's possible they may find more stolen information. Originally, the company thought 40 million payment card records were stolen but later found out hackers took 70 million pieces of consumer data.
Amazon is raising its membership fee for Amazon Prime. Instead of $20 per year, the new price for free two-day shipping is $99 per year.
The Prime membership also includes free Kindle and movie downloads. Current Prime members will see the price hike when they renew. This is the first time Amazon has increased the price for its Prime service.
Consumers may also be paying more for coffee soon. Arabica coffee prices fell Friday, but at $2.03 per pound, the bean price is up about 80 percent in the past seven weeks, the biggest rally since 1994. Last November, prices were at $1.06 per pound.
According to Reuters, some small and medium-sized roasters are set to raise prices 10 to 15 percent due to an unexpected drought in Brazil, but Starbucks announced it already has its orders locked in and won't be moving up prices. Companies like Green Mountain Roasters, which makes Keurig pods, has smaller profit margins and may be forced to make at least a small change if prices continue to increase.
This week, the big market news to watch will be how tension in the Ukraine affects stock prices and what happens when the Federal Reserve meets Wednesday.