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



Stock Market Today: Mondelez Kicks Coffee and Chesapeake Energy Doubles Profit

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) has gained 44 points in pre-market trading, suggesting a positive start to the stock market today. Global indexes won't provide any boost to Wall Street, as they were almost uniformly lower in overnight trading. Japan's Nikkei index posted a 3% loss and European stocks dropped for the fourth day in a row, down 1.1% as of 7:30 a.m. EDT.

Investors can expect another torrent of earnings reports to spur heavy trading in some stocks. More than 150 public companies will issue first-quarter earnings results throughout the day, with Mondelez (NASDAQ: MDLZ  ) and Chesapeake Energy (NYSE: CHK  )  having already delivered their numbers.   

Market movers

Mondelez announced some huge news in conjunction with its earnings results this morning: it is selling a 51% stake in its coffee business for roughly $5 billion. The deal will create a stand-alone coffee giant with over $7 billion in annual sales, and will also leave the company's business much more focused on snacks; 85% of revenue will come from snack products after the deal closes next year. The company plans to use most of the proceeds to fund a big increase in share repurchases. 

Additionally, Mondelz announced a major organizational restructuring plan that will cost $3.5 billion to implement over the next four years, but should lead to a boost in profitability starting in 2016. As for those quarterly results, sales dipped slightly to $8.64 billion, which was even with analysts estimates, while profit improved to $0.39 a share, just ahead of the $0.34 that Wall Street had expected. The stock was up 9.3% in pre-market trading.

Chesapeake Energy this morning said that its first-quarter profit nearly doubled to $0.59 a share, which was well ahead of the $0.48 that analysts were expecting. That earnings boost was powered by a 72% spike in natural-gas prices during the cold winter, and by a solid 11% increase in production levels.

CEO Doug Lawler said in a press release accompanying the results that Chesapeake's cost and efficiency investments are now "driving tangible improvements in the company's growth profile and financial performance." Those gains included a 37% spike in operating cash flow and a 34% rise in adjusted EBITDA this past quarter. Thanks to the strong start to the year and improving energy prices, Chesapeake raised its outlook for several financial metrics, including production growth and operating cash flow. The stock was up 3.9% in pre-market trading.

Ride America's energy bonanza
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Read/Post Comments (1) | Recommend This Article (2)

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.

Add your comment.

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: 2946853, ~/Articles/ArticleHandler.aspx, 9/2/2015 3:18:28 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...

Demitrios Kalogeropoulos

Demitrios covers consumer goods and media companies for, as well as broader moves in the economy.

Today's Market

updated Moments ago Sponsored by:
DOW 16,269.90 211.55 1.32%
S&P 500 1,935.75 21.90 1.14%
NASD 4,710.87 74.77 1.61%

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

9/2/2015 3:03 PM
^DJI $16272.14 Up +213.79 +1.33%
CHK $7.34 Down -0.23 -3.04%
Chesapeake Energy CAPS Rating: ****
MDLZ $42.06 Up +1.05 +2.56%
Mondelez Internati… CAPS Rating: ****