McDonald’s, Coca-Cola Come Up Short

By ABC News

Jul 22, 2014 9:21am

Morning Money Memo:

ABC News’ John Kapetaneas reports:

McDonald’s and Coca-Cola both missed analysts estimates this quarter, with McDonald’s posting a 1 percent drop in profits while Coke saw a nearly 3 percent decline in revenues. The fast-food and soda maker stood in contrast with Chipotle, which posted a 25 bump in revenues Monday after the bell. The chain restaurant reported sales up 17 percent from last year. Domino’s reported an 8.8 percent boost in revenue and 15.6 percent increase in net revenue.

In finance and banking: Credit Suisse reported a loss of nearly $780 million and a 6 percent drop in net revenue, on the heels of its $2.6 billion settlement with the U.S. Justice Department in May. TD Ameritrade posted a more than 3 percent rise in profits. Travelers fell short of Wall Street expectations, posting an 18 percent drop in operating profit. CIT Group far surpassed analyst estimates, posting a 34 percent increase in second-quarter profits, and announced today that it will buy OneWest Bank for $3.4 billion in cash-and-stock.

In industrial and defense: Lockheed Martin saw a 3.5 percent rise in profits. United Technologies reported a 7.7 percent rise in revenue. Halliburton Monday reported revenue growth of 8.9 percent.

In media and tech: Comcast posted a 15 percent rise in profits in the midst of the company’s bid to acquire Time Warner Cable. Netflix more than doubled profits through its over 50 million worldwide subscribers. Apple and Microsoft will be reporting after the close.

For markets, what a difference a day can make. European markets are in the green across the board today, rebounding after Monday’s losses. These results come the same day European ministers are expected to levy further sanctions against Russia in response to the downing of Malaysia Flight 17 by pro-Russian rebels. Despite the tensions, Russian markets also rallied nearly 2 percent today. Asian markets finished the day in positive territory, with exchanges in Hong Kong, Shanghai and India posting more than 1 percent gains. Saudi Arabia announced today that it will open its stock market to foreign investors beginning early next year. Dow futures are up 52 points this morning, while gold is down $5.60 to $1,309 an ounce.

And your wallet may be getting some relief at the pump, too. Gas prices have fallen on average 4 cents per gallon nationwide, with the national average dropping to $3.57 per gallon according to the U.S. Energy Department and AAA. Prices have fallen every day for three weeks, and are down 11 cents a gallon from this time last year.

Robert Downey Jr. reigns supreme on the silver screen. Robert Downey Jr. topped Forbes’ annual list of the highest paid actors in 2014. Blockbusters like Marvel’s “Iron Man” and “Avengers” brought in $75 million during the past year for Downey, trumping action-hero Dwayne “The Rock” Johnson ($52 million) and “The Hangover” star Bradley Cooper ($46 million), who finished second and third, respectively. Leonardo DiCaprio, Ben Affleck, and Will Smith also made the top 10 for their 2013-2014 earnings.

 

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