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



Morning Dow Report: Caterpillar Climbs, McDonald's Misses, and Verizon Makes a Buy

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

The Dow Jones Industrials (DJINDICES: ^DJI  ) opened Monday consolidating its gains from Friday, trading roughly unchanged as of 10:45 a.m. EST after its nearly 200-point jump in its previous session. Positive economic news on Chinese exports lent some support from the international front, but for the most part investors seemed to focus on company-specific news and its impact on particular stocks and industries. Caterpillar (NYSE: CAT  ) was among the biggest gainers in early trading, while McDonald's (NYSE: MCD  ) and Verizon (NYSE: VZ  ) lost ground.

Caterpillar's 0.80% gain reflected a combination of positive responses to Friday's U.S. jobs report and China's economic news. Caterpillar's heavy-equipment business relies heavily both on the U.S. and China, with the two key markets together providing a sizable portion of the company's overall revenue. Caterpillar has been conservative in its guidance lately, with falling commodities prices weighing on its mining-equipment segment even as decelerating growth in many parts of the world has pulled back on construction-equipment sales. A stronger U.S. economy that starts creating manufacturing and construction jobs could pull Caterpillar out of its funk and get the stock moving higher again on a more sustainable basis.

For McDonald's, though, economic conditions aren't cooperating. The stock dropped 1.2% this morning after the fast-food giant announced November same-store sales growth of just 0.5% globally, accompanied by a decline of 0.8% in its U.S. market. The challenges of a competitive market have forced McDonald's to respond with a variety of menu additions, but a varied menu also creates problems in delivering the high-speed service that fast-food customers demand. As controversy builds over raising the minimum wage, McDonald's could soon face a labor crisis to go with its flagging sales.

Verizon fell 0.4% after announcing it would acquire content-delivery specialist EdgeCast Networks for an undisclosed sum. Given the importance of delivering ever-growing streams of content more quickly and efficiently, the purchase makes sense as part of Verizon's overall attempt to provide digital-media solutions to professional enterprise customers, as well as for its own network. The move will also give Verizon thousands of additional customers to serve, including high-profile names like Twitter, Pinterest, and Hulu.

Get the income you need from the Dow
More investors than ever want dividend income from their stocks, and the Dow is a great place to find it. Check out The Motley Fool's brand-new special report, "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

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: 2757556, ~/Articles/ArticleHandler.aspx, 9/27/2016 9:48:06 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 32 minutes ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

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

9/27/2016 4:45 PM
^DJI $18228.30 Up +133.47 +0.74%
CAT $82.88 Up +0.51 +0.62%
Caterpillar CAPS Rating: ***
MCD $116.88 Up +0.35 +0.30%
McDonald's CAPS Rating: ***
VZ $52.49 Up +0.34 +0.65%
Verizon Communicat… CAPS Rating: ****