Dow Drops After China Data and Earnings Reports

The market is trading lower today amid earnings season. Here are two companies reporting today.

Jan 23, 2014 at 3:00PM

The Dow Jones Industrial Average (DJINDICES:^DJI) dropped 1.2% lower in early afternoon trading after earnings releases and disappointing Chinese manufacturing data hit the news feeds. According to the HSBC/Markit Chinese manufacturing purchasing managers' index, China's manufacturing sector contracted slightly from 50.5 in December to 49.6 this month -- below analyst expectations of 50.3. In other news, weekly initial unemployment claims rose 1,000 to 326,000, which checked in below expectations of 330,000. Here are two companies reporting quarterly results today.

Johnson Controls (NYSE:JCI) is trading 3.7% lower today despite posting a surge in profits. The company reported earnings per share of $0.69 in its first fiscal quarter of 2014 -- a 33% increase over the previous year's quarter.

Part of the company's surge is from its automotive experience business, which is thriving as the automotive industry continues its rebound. The quarter saw net sales for the segment rise 10% to $5.8 billion, while income was up 130% to $232 million.

During the quarter the company also returned value to shareholders by increasing its dividend by 16% and repurchasing $1.2 billion worth of shares as part of a three-year, $3.6 billion share repurchase program.

Going forward, the company expects second-quarter earnings per share to come in between $0.64 and $0.66, roughly a 45% increase. Segment income is also expected to rise 15% for the rest of the fiscal year.

Lockheed Martin (NYSE:LMT), down 3.4%, is feeling the pinch from the government defense budget cuts and reported a sales decline in the fourth quarter. Net sales dropped from $12.1 billion in the year-ago quarter to $11.5 billion. Net earnings also declined from $569 million, or $1.73 per diluted share, to $488 million, or $1.50 per diluted share.

"Our employees delivered exceptional performance for our customers in 2013 resulting in record backlog, earnings, and profit margin as well as strong cash generation," Lockheed Martin CEO Marillyn Hewson said in a press release. "Looking ahead to 2014, we will continue our focus on improving operational efficiency, reducing our cost structure, investing in innovations to address our customers' future challenges and returning value to our shareholders."

Dividend stocks like Johnson Controls can make you rich
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

Fool contributor Daniel Miller has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers