Stocks were lower across the board in early trading as investors analyzed a mixed batch of earnings and a strong dollar.
Stocks to watch
McDonald’s (MCD) shares got a nice pop in the pre-market. The fast food chain delivered better-than-expected earnings and revenue for the quarter ending September 30. Global sales increased 3.5% while US same-store sales rose 1.3%, helped by its all-day breakfast and value meals.
Microsoft (MSFT) shares were set to hit the highest level since the dot-com boom of 1999. The software giant’s bet on the cloud is paying off big time. The company delivered a beat on both its top and bottom lines for its fiscal first quarter as sales of its cloud business more doubled from a year ago. Overall revenue also got a bump, rising 3% after falling for the past five quarters.
General Electric (GE) posted earnings that topped forecasts for the third quarter. However, revenue missed analysts’ estimates as slow economic growth weighed on its oil and gas businesses. This prompted GE to lower its revenue guidance for the year and increase its stock buyback by $4 billion.
Skechers (SKX) stock got stomped this morning. The athletic shoe company cut its outlook for the current quarter after delivering third quarter results that missed Wall Street views. Skechers blamed the shortfall on currency challenges.
Lighting up a tobacco deal
Shares of tobacco company Reynolds American (RAI) are surging in early trading. The company that makes Newport, Camel and other cigarette brands received a $47 billion offer from British American Tobacco (BTI) for the 58% of Reynolds it doesn’t already own. BAT brands include Lucky Strike and Pall Mall, and the deal would create the world’s largest publicly traded tobacco company. Why is bigger better?
MetLife fires Snoopy
MetLife (MET) is retiring the lovable Peanuts character Snoopy, who has appeared in MetLife print and TV ads for more than three decades. Snoopy’s ouster is part of a marketing shift that includes a new corporate emblem and getting rid of the line “Get Met. It Pays” with the phrase “MetLife: Navigating life together.” What does this say about the state of marketing in America?
