Thursday, October 22, 2015

Dow Closes Up Over 300 Points: Blowout Earnings Reports

U.S. stocks closed sharply higher, today.

The Dow Jones Industrial Average advanced 328 points, or 1.9%, to 17,497.

The S&P 500 index climbed 34 points, or 1.7%, to 2,053, with only health-care stocks falling, down 1.6%. The Nasdaq Composite Index jumped 76 points, or 1.6%, to 4,915.

McDonald’s stock climbed $8.43, or 8.2%, in afternoon trading for its biggest one-day price gain in its history.

Earnings for the latest quarter at MCD rose to $1.31 billion, or $1.40 a share, from $1.07 billion, or $1.09 a share, compared with a consensus estimate of $1.27. Global same-store sales increased 4%, better than the  consensus of 1.7% growth. U.S. sales rose 0.9%, compared with expectations of a 0.3% decline

The strong earnings news did not stop after the close.

After the close, Google parent Alphabet earnings announced topped estimates. Analysts had expected Alphabet to report earnings of about $7.21 per share on $18.53 billion in revenue. The company beat both the top and bottom lines with earnings of $7.35 per share on revenue of $18.68 billion.

Microsoft also announced after the close and came in with d quarterly earnings and revenue that topped analysts' expectations with earnings of 67 cents per share for the first quarter of its 2016 fiscal year, on revenue of $21.66 billion.

Analysts had expected Microsoft to deliver quarterly earnings of just 59 cents per share on $21.03 billion in revenues.

Amazon posted a profit of $79 million, or 17 cents a share, compared with analysts' estimates of a 13-cent loss.


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