Stock Market Today: Apple Goes Big and McDonald’s Disappoints

What you need to know about today's stock market.

Jul 22, 2014 at 9:25AM

Things are looking up for stocks today. The Dow Jones Industrial Average (DJINDICES:^DJI) has gained 54 points in pre-market trading, suggesting a positive start for the blue-chip index. Global shares rose across the board overnight: Asian markets gained 1% and Europe's Stoxx index was up 1.1% as of  8:30 a.m. EDT.

A fresh update on the housing market could have an impact on today's session. The National Association of Realtors report is expected to show that 5 million existing homes changed hands last month. That would represent the fourth consecutive improvement since a monthly low set back in February. Look for the housing update to be issued at 10 a.m. EDT.

Ext Homes

Source: Federal Reserve Economic Data.

Meanwhile, breaking news has Apple (NASDAQ:AAPL) and McDonald's (NYSE:MCD) stocks on the move today.


The iPhone 5s. Source: Apple.

Apple investors won't have to wait until its earnings release this afternoon to get juicy new details on the Mac maker's product plans. The Wall Street Journal, citing "people familiar with the matter," reported today that Apple has asked its suppliers to manufacture 80 million new iPhones in preparation for the release of this year's models that should come with either a 4.7-inch or a 5.5-inch display. That production order is significantly larger than the 50 million to 60 million units that Apple originally requested of the smaller 5s and 5c models last year, the Journal reported. While the massive order suggests that Apple is likely to break iPhone sales records this fiscal year, it could be inflated by new production difficulties that will keep the manufacturing yield lower than usual. For example, the 5.5-inch model may come with a sapphire crystal display, which would be stronger than glass but is untested in mass production. Apple's stock was up 0.7% in pre-market trading.

McDonald's today posted earnings results that missed Wall Street's estimates on both the top and bottom lines. Sales and earnings both inched higher by just 1%, quarterly revenue was $7.1 billion, and profit came in at $1.40 per share. Analysts were instead targeting per-share earnings of $1.44 on $7.3 billion in sales. The fast-food giant's struggles continued in the second quarter as customer traffic levels fell around the world, leading to flat overall comparable-store sales. In a press release accompanying the results, CEO Don Thompson didn't provide much in the way of good news for investors, saying that management expects full-year results to be "relatively similar" to the flat growth that McDonald's booked through June. The stock was down 2.2% in pre-market trading.

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Demitrios Kalogeropoulos owns shares of Apple and McDonald's. The Motley Fool recommends Apple and McDonald's. The Motley Fool owns shares of Apple. 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."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

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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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