Stock Market Today: Futures Tumble as P&G and Honeywell Report Earnings

Why Procter & Gamble, Honeywell, and Bristol-Myers Squibb stocks are on the move today.

Jan 24, 2014 at 9:00AM

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

Investors can expect a sharply negative start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) lost 109 points, or about 0.8%, in premarket trading this morning. As they did yesterday, stocks look set to follow world markets lower at the end of the trading week: European and emerging market indexes lost more than 1% in overnight trading. Meanwhile, corporate earnings continue to roll in, with huge companies, including Procter & Gamble (NYSE:PG)Honeywell (NYSE:HON), and Bristol-Myers Squibb (NYSE:BMY), booking results this morning.

P&G today reported results for its fiscal second quarter. The consumer goods giant saw organic sales grow by 3%, in line with its forecast of between 3% and 4% growth this year. Revenue came in at $22.3 billion -- flat with the prior-year period -- as earnings ticked lower by a penny, to $1.21 a share. While unexciting, those solid results helped the company generate $3.3 billion in operating cash flow, which it distributed entirely to shareholders in the form of dividends and stock repurchases in the quarter. P&G also affirmed its guidance for the rest of the fiscal year, saying it still expects earnings to grow between 7% and 9%. The stock is unchanged in premarket trading.

Honeywell this morning booked a 13% jump in quarterly profit, to $1.24 a share. Revenue rose by a surprisingly high 8% in the fourth quarter, to hit $10.4 billion, as sales improved significantly in its automation and control and performance materials and technologies divisions. The company reaffirmed its guidance for 2014, saying that it sees sales growth of between 3% and 4% driving a 10% boost in earnings this year, to $5.35 a share. That leaves the stock valued at a reasonable 16 times this year's earnings. Honeywell shares are unchanged in premarket trading.

Finally, Bristol-Myers Squibb today beat quarterly earnings and sales estimates by logging $0.44 a share in profit on $4.4 billion in revenue. The drugmaker's revenue was pushed higher by a number of successful products, including the skin-cancer treatment Yervoy, which booked 23% sales growth in the quarter. Bristol-Myers provided an outlook for 2014 that called for earnings of $1.72 a share, or about 5% below last year's $1.82 haul. The stock is up 1.9% in premarket trading.

Start 2014 off right
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Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble. 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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