Closing Bell: Stocks Edge Higher Despite McDonald's Earnings Woes

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Richard Drew/AP
U.S. stocks ended Monday trading slightly higher, with the S&P 500 edging out a third record close, pushed higher by shares of bank and materials companies, while McDonald's weighed on the benchmark Dow industrials.

The Dow (^DJI) added 1.8 points, less than 0.1 percent, to 15,545, while the S&P 500 (^GPSC) gained 3 points, or 0.2 percent, to 1,695. The tech-heavy Nasdaq (^IXIC) rose 13 points, or 0.4 percent, to 3,600.

While the overall market was up, it was decidedly not a good day for McDonald's (MCD). The company's stock fell nearly 3 percent to end at $97.58 after the fast-food giant reported a weak second-quarter and warned of a tough year ahead. It was also a down day for Gannett (GCI), which lost 8 cents, or 0.3 percent, to close at $25.80, after the media company reported revenues that fell short of financial analyst expectations.

Financial stocks rose for the 10th day in the past 12, with Bank of America (BAC) leading the group, which rose 17 cents, or 1.2 percent, to $14.92. U.S.-listed shares of UBS (UBS) rose 3.2 percent to $19.24 after the Swiss bank said its second-quarter profit beat forecasts despite a charge to settle a U.S. lawsuit.

The price of gold broke above the $1,300 mark for the first time in a month, and gave mining stocks a lift. Gold rose $43.10, or 3 percent, to $1,336 an ounce, while shares of Newmont Mining (NEM) rose 5.8 percent to $30.35, enough to lead gains in the S&P materials sector.

One sector that struggled was homebuilders. Sales of previously occupied homes slipped in June to an annual rate of 5.08 million from 5.14 million in May, the National Association of Realtors reported. As a result, PulteGroup (PHM) fell 22 cents, or 1.2 percent, to $19.14; Lennar (LEN) dropped 73 cents, or 2.1 percent to $34.80; and KB Home (KBH) lost 45 cents, or 2.4 percent, to $18.65.

In commodities trading, the price of oil fell 93 cents, or 0.9 percent, to $106.94 a barrel.

Other stocks in the news:
  • Hasbro's (HAS) stock rose $1.49, or 3.3 percent, to $46.87. The nation's second biggest toymaker said that it is expanding its merchandising relationship with Walt Disney (DIS) for properties including Marvel and Star Wars.
  • Yahoo (YHOO) fell $1.25, or 4.3 percent, to $27.86. The company said that activist investor Dan Loeb and two other directors nominated by his hedge fund, Third Point, are leaving Yahoo's board after big gains in the company's stock price the past year.
  • Kimberly-Clark (KMB), which makes consumer products such as Kleenex tissue and Huggies diapers, fell $1.81, or 1.8 percent, to $97.68, after reporting quarterly revenue that fell short of analyst expectations.
What to watch Tuesday:

The following major companies report quarterly earnings results:
  • Altria Group Inc. (MO)
  • Apple Inc. (AAPL)
  • AT&T Inc. (T)
  • Discover Financial Services (DFS)
  • DuPont (DD)
  • Norfolk Southern Corp. (NSC)
  • RadioShack Corp. (RSH)
  • United Parcel Service Inc. (UPS)
  • Wendy's Co. (WEN)
-Compiled from staff and wire reports.


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kevcrotte

Wasnt there an article up a few days ago about McDonalds workers demanding a living wage (I think it was 15$ an hour)....with many people screaming that the corporation was getting rich off the backs of its workers? I wonder how McDonalds will do if they lose this fight to the workers....

July 23 2013 at 11:28 AM Report abuse rate up rate down Reply
arenadood

They will survive as long as they keep the dollar menus and the drive thru windows.

July 23 2013 at 10:59 AM Report abuse rate up rate down Reply
Craig

When you quit making a few popular items ahead, fast food quit being fast food. Putting latte's and other gourmet drinks has slowed their service.

July 23 2013 at 8:26 AM Report abuse rate up rate down Reply
David

Their prices are way too high for fast food. You can eat at a real restraurant for less money. I no longer eat there.

July 23 2013 at 7:20 AM Report abuse rate up rate down Reply
itsmegp46

Their food has gotten so bad lately, I've sworn off it totally. I really used to enjoy a big mac or a filet of fish. Now, the taste and texture of either is nauseating. I can only imagine how bad it is going to get in the future when the company tries to cut costs. Here's a novel idea. How about making your food the best tasting in the industry? Drawing in new customers and customers you've lost might just patronize your stores once more. You want to know what a good tasting hamburger from a chain tastes like? Try visiting a Five Guys restaurant.

July 23 2013 at 12:55 AM Report abuse rate up rate down Reply
nsheats

Value has nothing to do with it. Ever try to buy something that tastes like what it came from. burgers dont talste like beef, barbeque doesnt taste like pork and ch ... well you get the drift. It all tastes like the calorie loaded sauces and seasoning.

July 22 2013 at 7:30 PM Report abuse rate up rate down Reply
gfw1078

mcdonalds is no longer a value on the stock market or on the menu

July 22 2013 at 6:42 PM Report abuse rate up rate down Reply