Earnings From McDonald's, Microsoft Sink Stocks

McDonald's restaurantBy Matthew Craft

NEW YORK (AP) - Disappointing earnings reports from McDonald's (MCD), Microsoft (MSFT) and other companies dragged the stock market down Friday.

McDonald's led a broad drop in the Dow Jones industrial average, falling 3 percent. The Dow was down 100 points at 13,448 a half hour after the opening bell.

The Standard & Poor's 500 sank eight points to 1,448 and the Nasdaq composite dropped 23 points to 3,048. All 10 industry groups in the S&P 500 fell.

McDonald's profit sank as a strong dollar hurt international results, which account for two-thirds of its business. The fast-food giant's stock lost $2.86 to $90.00.

Microsoft's income fell 22 percent as PC sales took a dive and as troubles in Europe took their toll. Its stock lost 55 cents to $28.94.

General Electric (GE), another economic bellwether, fell 3 percent. The company reported stronger profits early Friday but its revenue missed Wall Street's expectations. Orders for new equipment and services sank, mainly because wind turbine orders have fallen because a key U.S. federal subsidy for wind power expires at the end of the year.

GE's stock lost 67 cents to $22.16.

Among other stocks making big moves, Chipotle Mexican Grill (CMG) plunged 14 percent, the most in the S&P 500, after the burrito chain forecast that revenue growth would slow sharply next year. The stock had been a favorite among investors thanks to super-fast growth in recent years. The stock fell $41.32 to $244.61.

Weak earnings from Google (GOOG) and a rise in claims for unemployment benefits helped pull the stock market lower Thursday. That snapped a four-day run of gains for the Dow.

The major market indexes are still higher for the week. The Dow is up 0.9 percent and the S&P 500 up 1.4 percent.

In other Friday trading, the yield on the 10-year Treasury note slipped to 1.81 percent from 1.83 percent late Thursday.

Oil prices edged up close to $93 a barrel after a pipeline transporting crude from Canada to the Midwest was shut down for repairs.

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Is 'windmill stock' doing OK now that Obama is hyping his success in wind energy??? Or are the tax payers still losing millions in this scam by the Obama boners???

October 19 2012 at 4:13 PM Report abuse +1 rate up rate down Reply