Yahoo Finance Busy day of earnings begins with McDonald's
Wall Street is struggling to make headway. All three major averages (^DJI, ^GSPC, ^IXIC) were up slightly in early trading with technology shares leading the advance as investors digested a full plate of earnings from a handful of Dow components and the Federal Reserve kicked off its two-day meeting.
Michelle Girard, managing director and chief US economist at RBS explains to Yahoo FInance’s Alexis Christoforous in the video above why she doesn’t expect the Fed to raise interest rates or set the stage for an interest rate hike in September, despite the recent strength in the economy and the stock market.
Meanwhile, oil prices (CLU16.NYM) remained under pressure this morning, with crude at three-year lows as worries over oversupply persist.
McDonald’s so-so sales
McDonald’s (MCD) shares fell in early trading. The fast-food chain delivered adjusted earnings that beat estimates and revenue that came in roughly in line with Wall Street views. But overall sales fell 3% from a year ago on weaker-than-expected same-store sales growth. The company said it faced “a challenging environment in several key markets.”
Related: McDonald’s sales grow, but not by enough
Caterpillar (CAT) forked over better-than-expected second quarter results. However, sales were down 16% from a year earlier. The company also lowered its outlook for the year and said it would cut more jobs. CEO Doug Oberhelman said, “World economic growth remains subdued and is not sufficient to drive improvement in most of the industries and markets we serve.”
Related: CATERPILLAR: ‘World economic growth remains subdued’
Under Armour (UA) posted earnings and revenue that matched expectations for the second quarter as sales jumped 28% and operating income fell from a year earlier.
Texas Instruments (TXN) shares rose to a new high in early trading. The semiconductor company, buoyed by strong demand for chips used in cars and industrial machinery, raised its outlook for the current quarter after posting a beat on both its top and bottom lines.
Apple preview
Apple (AAPL) is scheduled to report fiscal third-quarter results after the market close today. Analysts expect Apple’s sales to decline by 15% from a year ago to about $42 billion, with iPhone sales dragging down revenue for a second straight quarter.
Getting drones off the ground
The UK is allowing Amazon (AMZN) to test drone deliveries. The online retailer will be supervised by the UK Civil Aviation Authority on all tests. Amazon’s goal is to deliver items safely to customers in at least 30 minutes.
