Fiscal Fears Continue to Weigh Down Wall Street (MCD, GRPN)
Worries about the fiscal cliff continued to weigh heavily on US markets even after several positive economic reports. Many fear this cliff will push the economy back into recession in 2013 and force the jobless rate up to above 9%. There was a small boost to the economy after exports in September climbed to a record high, causing the trade deficit to decline. The gap narrowed by 5.1%. Jobless claims dropped to 355,000 during the past week, a figure that was lower than expected. McDonald's (MCD) contracted for the first time in almost a decade with sales dropping clost to 2% in October.Duke Energy Corp.'s (DUK) profit was up 26% due to an increase in Q3 profit and their acquisition of Progress Energy. European stocks ended higher on Thursday after further austerity measures were passed in Greek parliament and Siemens AG (SI) reported positive results and plans to cut costs.
Word on the Street
- McDonald's (MCD) has its first drop in sales since April of 2003.
- US trade deficit narrows by $2.3 billion in September due to the current oil boom.
- Applications for unemployment benefits drop by 8,000 to a total of 355,000.
- AMC Networks Inc. (AMCX) reports quarterly earnings and sees shares soar as much as 14%.
- Dolby Laboratories Inc. (DLB) announces a higher than estimated EPS and quarterly revenue.
- Greece to introduce new banknotes in May in order to improve currency security.
- Walt Disney Co. (DIS) says profit rose 14% on ESPN and theme parks.
- Groupon (GRPN) misses again with a Q3 loss, disappointing many with its revenue growth.
Published on Nov 8, 2012By InvestorGuide Staff