How Earnings Are Pulling Up the Dow

Earnings season is well underway, and it's been interesting to see how various earnings reports have had a huge impact on the markets. With the Dow Jones Industrials (DJINDICES: ^DJI  ) having risen to within a few hundred points of their all-time high, continuing positive surprises on the earnings front could be the catalyst that extends the bull market beyond the four-year mark this March.

Within the Dow this morning, Procter & Gamble (NYSE: PG  ) added itself to the list of companies making shareholders happy, reporting profits that more than doubled over the year-ago quarter. Even including the impact of restructuring costs and expense-cutting measures, P&G's earnings came in well above expectations, and more importantly, the consumer giant pushed up its estimates for its full 2013 fiscal year. With P&G having taken a lot of flak recently for failed product launches and inefficiencies, this report could well change sentiment among investors, as the stock is poised to hit new five-year highs. The stock is up a whopping 3.3% as of 10:50 a.m. EST.

Halliburton (NYSE: HAL  ) also reported its quarterly results. Although it managed to top estimates, the oil services company nevertheless reported a drop in net income of 35%. Despite plentiful new opportunities for energy exploration and production around the world, activity in Halliburton's key domestic market has been relatively slow, as a glut of natural gas amid low prices has led to a reduction in onshore drilling. However, as it continues to emphasize the potential of its deepwater services, Halliburton has set the stage for a promising future, as that market seems to have almost boundless growth. The stock is up 5% so far today.

Finally, Honeywell (NYSE: HON  ) managed to top estimates in its quarterly report this morning, reversing a year-ago loss by posting a profit of $0.32 per share. Despite dealing with a somewhat sluggish growth environment in which revenue rose only 1%, the company has managed to boost margins in order to help its net income recover. Honeywell also affirmed its guidance for 2013, sending shares higher.

Want to learn more about Halliburton?
Domestic oil and gas service companies have taken a hit in the recent past due to a slowdown in the natural-gas drilling boom of the last couple of years. As this market looks to rebound, investors would be wise to consider Halliburton, one of the top companies in the business and one of those most in tune with the domestic market. To access The Motley Fool's new premium research report on this industry stalwart, simply click here now and learn everything you need to know about how Halliburton is positioning itself both at home and abroad.


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

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.

DocumentId: 2215677, ~/Articles/ArticleHandler.aspx, 7/29/2014 7:48:16 AM

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...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement