October 20, 2017

McDonald’s Falls Short, Restraining Market’s Rally

The stock market edged higher on Monday, although disappointing McDonald’s earnings kept the Dow Jones industrial average from making any significant gains.

Banks and health shares were the day’s best performers; financial stocks advanced for the 10th time in the last 12 sessions. Bank of America led the group, while the American-listed shares of UBS rose 60 cents, or 3.22 percent, to $19.24, after the Swiss bank’s second-quarter profit exceeded forecasts.

Analysts said the market would probably trend higher in the absence of any weak economic news, but it would need strong earnings and positive forecasts to post large gains.

“Most earnings have been good, maybe not great but good, and as a consequence I think investors continue to show that equities is the asset class of choice for them right now,” said Richard Meckler, president of LibertyView Capital Management.

Weaker-than-expected results from the fast-food company McDonald’s weighed on the Dow after it said its full-year results would be “challenged” by falling sales in Europe. McDonald’s shares lost $2.69, or 2.68 percent, to $97.58.

The Dow Jones industrial average gained 1.81 points, or 0.01 percent, to 15,545.55.

The Standard Poor’s 500-stock index reached another nominal closing record high, rising 3.44 points, or 0.2 percent, to 1,695.53.

The Nasdaq composite index added 12.77 points, or 0.36 percent, to 3,600.39.

The S. P. 500 has advanced nearly 19 percent so far this year.

Nearly one-third of S. P. 500 companies are expected to report earnings this week, including Apple on Tuesday. Of the 109 companies in the S. P. 500 that have reported earnings for the quarter, 64.2 percent have exceeded analysts’ expectations, while fewer than half have topped revenue estimates.

In the bond market, interest rates were stable. The price of the Treasury’s 10-year note was unchanged at 93 21/32, while its yield remained at 2.48 percent.

Article source: http://www.nytimes.com/2013/07/23/business/daily-stock-market-activity.html?partner=rss&emc=rss

S.&P. 500 Again Closes at a Record

The Standard Poor’s 500-stock index notched a third consecutive record closing high on Monday and major indexes rose, though disappointing McDonald’s earnings kept the Dow from making significant gains.

Banks and health shares were the day’s best performers, with financials advancing for the 10th time in the past 12 sessions. Bank of America led the group, while United States-listed shares of UBS rose 3.2 percent to $19.23 after the Swiss bank’s second-quarter profit beat forecasts despite a charge to settle a regulatory lawsuit.

At the close, the Dow Jones industrial average was up 1.81 points, or 0.01 percent, at 15,545.55. The S.P. 500 rose 3.44 points, or 0.20 percent, to 1,695.53, and the Nasdaq composite added 12.77 points, or 0.36 percent, to 3,600.39.

Analysts said the market is likely to trend higher in the absence of any weak economic news but would need strong earnings and positive forecasts from companies to post large gains.

“Most earnings have been good, maybe not great but good, and as a consequence I think investors continue to show that equities is the asset class of choice for them right now,” said Rick Meckler, president of LibertyView Capital Management in Jersey City. “It’s difficult to see, short of some really strong economic numbers, what could push the market significantly ahead.”

Weaker-than-expected results from McDonald’s, the world’s largest restaurant chain, weighed on the Dow after the company said full-year results would be “challenged” by falling sales in Europe, its biggest market. Its shares lost 2.7 percent to $97.58.

Shares of Netflix fell 6.1 percent in after-hours trading after the company reported a higher profit for the second quarter but added fewer subscribers to its video streaming service than analysts expected.

Five of the S.P. 500 industry sectors advanced in Monday’s session. Trading volume was below average, with 5.2 billion shares changing hands on American exchanges.

The S.P. 500 has added nearly 19 percent so far this year. Recent data showed funds that hold American stocks gained $16.96 billion in the week ended Wednesday, the most since June 2008.

A rise in metal prices lifted materials shares, with Newmont Mining up 5.8 percent to $30.35, enough to lead gains in the S.P. materials sector.

Technology shares also moved higher, with Microsoft adding 1.9 percent to $32.01 after the software maker tumbled 11.4 percent on Friday following dismal results.

The PHLX housing sector index fell 0.8 percent after an unexpected drop in American home resales in June. The data also gave support to bets that the Federal Reserve will extend its rate of bond purchases to support the economy.

September, however, remains the most likely time for the Fed to announce that it will begin scaling back its $85 billion a month in bond purchases, according to a Reuters poll.

Nearly one-third of S.P. 500 companies are expected to report earnings this week, including Apple on Tuesday.

Of the 109 companies in the S.P. 500 that have reported earnings for the quarter, 64.2 percent have beaten analyst expectations, while fewer than half have topped revenue estimates, Thomson Reuters data showed.

Article source: http://www.nytimes.com/2013/07/23/business/daily-stock-market-activity.html?partner=rss&emc=rss

Wall Street Turns Upward

The stock market edged higher on Monday, although disappointing McDonald’s earnings kept the Dow Jones industrial average from making any significant gains.

Banks and health shares were the day’s best performers; financial stocks advanced for the 10th time in the last 12 sessions. Bank of America led the group, while the American-listed shares of UBS rose 60 cents, or 3.22 percent, to $19.24, after the Swiss bank’s second-quarter profit exceeded forecasts.

Analysts said the market would probably trend higher in the absence of any weak economic news, but it would need strong earnings and positive forecasts to post large gains.

“Most earnings have been good, maybe not great but good, and as a consequence I think investors continue to show that equities is the asset class of choice for them right now,” said Richard Meckler, president of LibertyView Capital Management.

Weaker-than-expected results from the fast-food company McDonald’s weighed on the Dow after it said its full-year results would be “challenged” by falling sales in Europe. McDonald’s shares lost $2.69, or 2.68 percent, to $97.58.

The Dow Jones industrial average gained 1.81 points, or 0.01 percent, to 15,545.55.

The Standard Poor’s 500-stock index reached another nominal closing record high, rising 3.44 points, or 0.2 percent, to 1,695.53.

The Nasdaq composite index added 12.77 points, or 0.36 percent, to 3,600.39.

The S. P. 500 has advanced nearly 19 percent so far this year.

Nearly one-third of S. P. 500 companies are expected to report earnings this week, including Apple on Tuesday. Of the 109 companies in the S. P. 500 that have reported earnings for the quarter, 64.2 percent have exceeded analysts’ expectations, while fewer than half have topped revenue estimates.

In the bond market, interest rates were stable. The price of the Treasury’s 10-year note was unchanged at 93 21/32, while its yield remained at 2.48 percent.

Article source: http://www.nytimes.com/2013/07/23/business/daily-stock-market-activity.html?partner=rss&emc=rss

Business Briefing | Economic News: Official Predicts Recession Is Returning to Spain

Opinion »

All Under One Roof

Room for Debate asks: Is it so bad for young adults to move back in with their parents?

Article source: http://feeds.nytimes.com/click.phdo?i=1a073114cbb7e29acfd2cf607aae9141

Stocks & Bonds: Dow Gains 153 Points to End the Quarter Higher

The yield on the Treasury’s benchmark 10-year note rose as the Federal Reserve’s bond buying program ended and investors poured money into equities.

The Dow industrials closed up 152.92 points, or 1.25 percent, at 12,414.34. Although stocks tumbled for most of the month of June, a surge of 480 points this week helped give the Dow a gain of about 0.7 percent for the second quarter.

The Standard Poor’s 500-stock index rose 13.23 points, or 1.01 percent, to 1,320.64, while the Nasdaq composite index was up 33.03 points, or 1.21 percent, at 2,773.52. Both the S. P. and the Nasdaq were slightly lower for the quarter.

For the first half of 2010, the Dow gained 7.2 percent, the S. P. rose 5 percent and the Nasdaq increased 4.6 percent.

Stocks climbed Thursday after a vote in the Greek Parliament enabled the country to begin cuts in spending and steps to raise revenue. German banks also agreed to take part in a plan to aid Greece by accepting longer maturities some of the Greek bonds that they hold.

Although analysts said the news had already been largely factored into stock prices, it was still enough to lift sentiment in Europe and the United States.

“This week’s developments hardly mark an end to the economic crisis afflicting Europe, or Greece, for that matter,” said Kevin H. Giddis, the executive managing director and president for fixed-income capital markets at Morgan Keegan Company. “But at least the can has been kicked down the road,” he wrote in an economic commentary.

In economic news, a barometer of manufacturing, the Chicago purchasing managers index, recorded an unexpectedly strong increase to 61.1 in June, above market expectations for a decline to 54, according to a survey by Bloomberg News.

Analysts saw the rise as an indication of stronger-than-expected new orders in the region, which includes the crucial automobile manufacturing sector.

Employment indicators remained weak, however, with initial claims for unemployment benefits at a still-high 428,000 in the latest week, according to a report from the Labor Department report.

Stocks in sectors including energy, materials, technology and industrial stocks, all pushed ahead by more than 1 percent on Thursday.

Exxon rose 1.4 percent to $81.38. The chip maker Intel gained 3.6 percent to $22.16. Caterpillar rose 3 percent to $106.46, and General Electric rose 1.6 percent to $18.86.

The Treasury’s 10-year note declined for a fourth consecutive trading day Thursday as the Fed’s bond buying program, known as QE2, drew to a close. The note fell 10/32, to 99 23/32, and the yield rose to 3.16 percent from 3.12 percent late Wednesday.

“There is a lot of concern about quantitative easing and who is going to be the buyer” now that the Fed has withdrawn, said Laura LaRosa, director of fixed income at the investment firm Glenmede.

Economists and investors continue to debate how much the Fed’s quantitative easing program helped the economy. But traders said it had been a boon for the stock market.

The S. P. has risen more than 20 percent since last August when the Fed chairman, Ben S. Bernanke, first indicated in a speech that a new round of quantitative easing was likely to be adopted to help the economy.

Article source: http://feeds.nytimes.com/click.phdo?i=f97c9242231072f33a4fb76cb77b561a

Markets Unsteady After Jobs Data

The Dow Jones industrial average shed 37.65 points, or 0.3 percent, to 12,113.61. The S. P. 500 dropped 6.11 points, or 0.5 percent, to 1,294.05. And the Nasdaq composite index lost 2.79 points, or 0.1 percent, to 2,729.99.

World markets were weak on Monday, with a leading European index down for a fourth straight session and the Nikkei average off 1.2 percent to an 11-week low. Tokyo Electric Power Company hit new lows and fanned bearish sentiment in the wake of soft data out of the United States on Friday.

The broad-based S. P. index has fallen 4.5 percent since a recent high at the start of May and is trading at six-week lows after falling through key technical support levels. Investors are eyeing the index’s low for April.

”The next two support levels, the important ones, are April 18 1,294.70, and then thereafter the March 16 1,249.05,” said Wayne Kaufman, chief market analyst at John Thomas Financial in New York. ”Whether the support levels hold or not, there is still no demand for stocks.”

A much weaker-than-expected jobs report on Friday was the latest disappointing economic news to hit sentiment. The S. P. 500 fell 2.3 percent for the week, its worst since August. The index ended Friday with its fifth straight week of losses.

Mr. Kaufman said the recent falls had made stock valuations their most attractive since November, which could be a catalyst to drive the market higher ahead of second-quarter earnings season in July.

In one potential bright spot for investors, Steven P. Jobs, the chief executive of Apple who has been on medical leave, was scheduled to take to the stage in San Francisco on Monday and could take the wraps off an Internet-based music streaming service. The shares rose 0.9 percent to $346.66 in early trading.

Brent crude fell 1 percent to $114.77 a barrel on concern about demand ahead of a crucial meeting of the Organization of the Petroleum Exporting Countries later this week. Signs that high prices are eroding demand in the West are worrying a group of OPEC’s core members.

Article source: http://feeds.nytimes.com/click.phdo?i=34fe93aa0178c816eabbee609557f09d