Dow soared 210, advancers over decliners almost 6-1 & NAZ went up 40. Bank stocks led the way, taking the Financial Index nearer to its 3 month high of 180.
The MLP index was up 2+ to the 365s & the REIT rose 5+ to 219 while the VIX, volatility index fell 2 to the 32s (still quite high). Junk bond funds were higher will Treasuries slipped as stocks advanced. Oil rose for the first time in 3 days on hopes that European leaders will reach a deal to contain the region’s debt crisis. Gold rose the most in more than a week on a drop in the dollar & renewed optimism that Europe will tame the debt crisis, boosting demand for gold.
Photo: Yahoo
McDonald's, a Dow stock & Dividend Aristocrat, Q3 net income rose 9%, its 9th straight quarterly gain & beat estimates. Results were boosted by a 14% increase in revenue that offset some higher expenses, including a higher effective tax rate & rising labor costs overseas. CEO Jim Skinner said that Q3 results are "a clear indication that our strategy is working." This success also comes from efforts to focus on growing emerging markets as the US economy struggles. In China, restaurant locations were increased from about 1200 to 1400 over the year. Europe now accounts for the biggest portion of revenue, slightly more than 40%. Revenue in the US rose 5%, slow compared with other regions. Revenue in Europe climbed 16% & revenue in Asia/Pacific, the Middle East & Africa climbed 20%. However, those gains also benefited by the impact of foreign currencies. Overall revenue rose to $7.17B & revenue at stores open at least 13 months rose 5%. EPS was $1.45, beating expectations of $1.43. MCD expects interest expenses to increase 8-10% for 2011 & expects food costs to increase 4½-5% in the US & Europe for the year. The stock gained 2.49 to a new record high.
McDonald’s Net Rises 8.6% on U.S. Same-Store Sales
General Electric, a Dow stock, Q3 profit rose 18% as its lending business continued to rebound. These results benefited most from GE Capital, which boosted segment earnings 79% to $1.47B & industrial orders grew 16%. EPS rose to 22¢ from 18¢ last year. With its lending business increasingly healthy, GE bought back preferred shares from Warren Buffett's Berkshire Hathaway (BRK.A) for $3.3B. Buffett's investment stabilized the company finances during the financial meltdown 3 years ago. Excluding the large div payout to BRK.A, EPS rose to 31¢, matching expectations. Revenue was flat at $35.4B. "We continue to successfully navigate a volatile global economy," said CEO Jeff Immelt, who expects a double-digit percentage increase in operating earnings next year. Among other businesses, aviation profit increased 7% to $862M, health care grew 5% to $608M & transportation almost doubled to $196M. But profit declined 9% to $1.5B at energy infrastructure. The industrial businesses were driven by strong growth in Brazil, Russia & China. Revenue grew in the US as well. The stock fell 24¢ in an up market.
GE Earnings Match Estimates on Finance Gain
The bulls finally have their way & are taking the Dow to a new 10 week high, breaking thru the ceiling that has held. The latest round of earnings were encouraging, although MCD is kind off a contrary one. Interesting that MCD & GE are benefiting most from strong overseas business while the US doesn't do as well. European leaders begin a 6 day marathon on Greek & European debts. They will use Scotch-Tape to patch holes, hoping that will solve fundamental problems. But,so far so good. Dow is up an impressive 840 this month in what can be a cruel month. The bulls are back in charge!
S&P 500 Financials Sector Index
| Value | 175.73 | |
| Change | 3.24 (1.9%) |
The MLP index was up 2+ to the 365s & the REIT rose 5+ to 219 while the VIX, volatility index fell 2 to the 32s (still quite high). Junk bond funds were higher will Treasuries slipped as stocks advanced. Oil rose for the first time in 3 days on hopes that European leaders will reach a deal to contain the region’s debt crisis. Gold rose the most in more than a week on a drop in the dollar & renewed optimism that Europe will tame the debt crisis, boosting demand for gold.
ALERIAN MLP Index (^AMZ)
DJ REIT INDEXDJR (^DJR)
Clickfor the latest market update below:
Treasury yields:
U.S. 3-month | 0.015% | |
U.S. 2-year | 0.271% | |
U.S. 10-year | 2.217% |
| CLZ11.NYM | ....Crude Oil Dec 11 | ...88.25 | ..... 2.18 | (2.5%) |
| GCV11.CMX... | Gold Oct 11 | ......1,639.10 | ... 27.20 | (1.7%) |
Photo: Yahoo
McDonald's, a Dow stock & Dividend Aristocrat, Q3 net income rose 9%, its 9th straight quarterly gain & beat estimates. Results were boosted by a 14% increase in revenue that offset some higher expenses, including a higher effective tax rate & rising labor costs overseas. CEO Jim Skinner said that Q3 results are "a clear indication that our strategy is working." This success also comes from efforts to focus on growing emerging markets as the US economy struggles. In China, restaurant locations were increased from about 1200 to 1400 over the year. Europe now accounts for the biggest portion of revenue, slightly more than 40%. Revenue in the US rose 5%, slow compared with other regions. Revenue in Europe climbed 16% & revenue in Asia/Pacific, the Middle East & Africa climbed 20%. However, those gains also benefited by the impact of foreign currencies. Overall revenue rose to $7.17B & revenue at stores open at least 13 months rose 5%. EPS was $1.45, beating expectations of $1.43. MCD expects interest expenses to increase 8-10% for 2011 & expects food costs to increase 4½-5% in the US & Europe for the year. The stock gained 2.49 to a new record high.
McDonald’s Net Rises 8.6% on U.S. Same-Store Sales
McDonald's Corporation (MCD)
General Electric, a Dow stock, Q3 profit rose 18% as its lending business continued to rebound. These results benefited most from GE Capital, which boosted segment earnings 79% to $1.47B & industrial orders grew 16%. EPS rose to 22¢ from 18¢ last year. With its lending business increasingly healthy, GE bought back preferred shares from Warren Buffett's Berkshire Hathaway (BRK.A) for $3.3B. Buffett's investment stabilized the company finances during the financial meltdown 3 years ago. Excluding the large div payout to BRK.A, EPS rose to 31¢, matching expectations. Revenue was flat at $35.4B. "We continue to successfully navigate a volatile global economy," said CEO Jeff Immelt, who expects a double-digit percentage increase in operating earnings next year. Among other businesses, aviation profit increased 7% to $862M, health care grew 5% to $608M & transportation almost doubled to $196M. But profit declined 9% to $1.5B at energy infrastructure. The industrial businesses were driven by strong growth in Brazil, Russia & China. Revenue grew in the US as well. The stock fell 24¢ in an up market.
GE Earnings Match Estimates on Finance Gain
General Electric Company (GE)
The bulls finally have their way & are taking the Dow to a new 10 week high, breaking thru the ceiling that has held. The latest round of earnings were encouraging, although MCD is kind off a contrary one. Interesting that MCD & GE are benefiting most from strong overseas business while the US doesn't do as well. European leaders begin a 6 day marathon on Greek & European debts. They will use Scotch-Tape to patch holes, hoping that will solve fundamental problems. But,so far so good. Dow is up an impressive 840 this month in what can be a cruel month. The bulls are back in charge!
Dow Industrials (INDU)
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