Yahoo Finance Consumer prices rise; Wal-Mart's big beat; McDonald's ditches dollar menu
Wall Street’s rally is fading in early trading as a decline in oil prices put pressure on stocks despite some better-than-expected results from some big name retailers.
One prominent Wall Street bull still says the stock market rally isn't over just yet. Tony Dwyer, chief market strategist at Canaccord Genuity, explains in the video above why he still sees the S&P (^GSPC) going up another 100 points by the end of the year.
Consumer prices rise
Meanwhile, inflation on the consumer level increased after two back-to-back months of declines due to higher costs for energy and food.
The Labor Department reported the consumer price index rose 0.2% in October, in-line with economists’ estimates.
The so-called core-rate, which strips out the volatile food and energy sectors also increased by 0.2% on higher costs for such things as rent and health care.
“I think it will reinforce the Fed decision that December could be the likely first lift-off of the zero interest rate policy … Actually, the risk right now is deflation not inflation, so I think they [Fed] would rather see some degree of inflation, so up 0.2% on the core level I think is a good thing,” Dwyer said.
Retail Results
Wal-Mart (WMT) gave an upbeat earnings outlook for the current quarter after posting earnings per share that topped Wall Street views in its latest quarter. However, sales slightly missed forecasts, falling more than 1% from a year earlier on weak sales overseas.
Home Depot (HD) delivered earnings that topped analysts' estimates, while revenue came in-line with forecasts for the third quarter. Sales rose more than 6% from a year earlier on stronger-than-expected same-store sales growth, as it benefited from an improving housing market. Rival Lowe's (LOW) is expected to report results tomorrow.
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Urban Outfitters (URBN) reported revenue that missed analysts' estimates because of weaker-than-expected same-store sales growth in the third quarter as it rang up flat sales at its Anthropologie stores. However, profit and margins improved with earnings per share matching expectations. Ahead of the results, the apparel retailer announced it’s buying the Philadelphia based Vetri Family restaurant group, which includes Pizzeria Vetri.
BlackBerry's (BBRY) CEO John Chen tells CNBC that the launch of its Priv model will help the company return to profitability next year.
Legal blow to DrafKings, FanDuel
DraftKings' and FanDuel’s requests for a temporary restraining orders that would block New York Attorney General Eric Schneiderman’s attempt to shut down the businesses in the state were denied. Schneiderman is claiming the websites are too much like a lottery. Yahoo (YHOO), parent of Yahoo Finance, operates Yahoo Sports Daily Fantasy.
McDonald’s new menu deal
McDonald’s (MCD) is ditching its dollar menu for the "McPick 2" deal. Starting January 4, the new value offer will let customers select two items for $2.00 from four choices: the McDouble and McChicken sandwiches, fries, and mozzarella stocks.
