King Digital Suffers Setback; 1 Stock Keeps Dragging on the Dow

For a third day in a row, McDonald's (NYSE: MCD  ) was a drag on the Dow Jones Industrial Average (DJINDICES: ^DJI  ) , as it deals with a meat scandal in China and disappointing second-quarter results. Boeing, while able to beat Wall Street expectations, also pulled the Dow lower, as analysts raised questions about the aerospace company's cash flow. By Wednesdays' end, the Dow had erased 26 points, or 0.2%, to end at 17,086.

Several questions loom large for McDonald's shareholders today, not least of which is how the company will reignite its same-store sales growth, which literally did not budge last quarter. McDonald's itself was looking for 0.8% same-store sales growth in the quarter, and was unable to live up to even those pitifully low standards. But arguably the biggest issue facing Mickey D's right now is how to recover from the PR nightmare that began earlier this week with reports that a meat supplier in China was selling expired meat to the restaurant. Since then McDonald's has halted orders from the supplier as it investigates, but shares lost another 1% today in the wake of the fallout.

Many wonder if the mood will be so jolly for the creatures of Candy Crush when the changes go into effect. Image source: Candy Crush

Shares of King Digital Entertainment (NYSE: KING  ) , the newly public app-maker behind the popular puzzle game Candy Crush Saga, took a big hit today as a result of recent regulations that will likely make revenue harder to come by. Companies like Apple and Google are removing so-called "freemium" games -- which are free to download but offer tons of in-app purchases -- from the "free apps" section of their respective app stores in Europe, due to regulatory pressure. King Digital Entertainment stock lost 5.6% today, which also saw Bank of America downgrade the shares from buy to neutral.

On a lighter note, shares of job placement service Robert Half International (NYSE: RHI  ) surged 7.3% Wednesday. Citing an improving labor market, the company's revenue rose nearly 10% last quarter, while net income soared 19%. Both figures topped expectations. The labor market is improving steadily, which should be great business for Robert Half if the trend continues. The economy added 288,000 jobs last month, as the unemployment rate fell to 6.1% in June, its lowest reading since September 2008.


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.

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: 3041740, ~/Articles/ArticleHandler.aspx, 9/23/2014 2:23:28 AM

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...


Advertisement