Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



A Solid-Looking Procter & Gamble Bolsters the Dow

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up on better-than-expected earnings from numerous companies, including Dow components Procter & Gamble (NYSE: PG  ) and Microsoft (NASDAQ: MSFT  ) as well as a decent home sales report. The S&P 500 is also up, having hit a five-year high yesterday as its largest component, Apple, plunged. As of 1:15 p.m. EST, the Dow is up 52 points, or 0.38%, to 13,878. The S&P 500 (SNPINDEX: ^GSPC  ) is up 0.39%.

This morning the Department of Commerce reported that sales of single-family homes fell to a seasonally adjusted annual rate of 369,000. That's below November's rate of 398,000 and analyst expectations of 385,000, but it's still up almost 9% year over year. New single-family homes sales have risen slowly but steadily since bottoming out in late 2010 to early 2011. They are still far below the levels hit in the boom years of 2004 to 2006, when single-family home sales consistently averaged a rate of more than 1.25 million.

US New Single Family Houses Sold Chart

US New Single Family Houses Sold data by YCharts.

What's really nudging the Dow up today is a bevy of better-than-expected earnings releases from numerous companies. Among Dow components, last night Microsoft reported expectation-beating earnings and its highest quarterly revenue ever. Non-Dow stocks Haliburton and Honeywell also reported forecast-busting earnings, though Honeywell shares are practically flat today.

Today's Dow leader
Today's Dow leader is Procter & Gamble, up 3.7% to $73.01. This morning the consumer goods company reported second-quarter earnings of $1.39 per share. Core earnings, which exclude a one-time gain and a restructuring charge, were $1.22 per share. Core earnings were up 12% from last year's $1.09, beating both analyst expectations of $1.11 and Estimize's "wisdom of the crowds" expectations of $1.13. Revenue was $22.2 billion, which also beat analyst expectations and Estimize's estimates of $21.9 billion.

The pleasantly surprising results were broad-based, with all of Procter & Gamble's segments reporting positive organic growth. Based on this quarter's positive results and improving business conditions, Procter & Gamble upped its full-year expectations for core earnings from a range of $3.80 to $4.00 per share to a range of $3.97 to $4.07 per share.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2216305, ~/Articles/ArticleHandler.aspx, 9/25/2016 5:25:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:01 PM
PG $87.76 Down -1.23 -1.38%
Procter and Gamble CAPS Rating: ****
MSFT $57.43 Down -0.39 -0.67%
Microsoft CAPS Rating: ****