The stock market has struggled to get its footing this week, with a full slate of financial results creating considerable volatility. On Thursday morning, however, Wall Street looked like it might finally get some sustained relief from the losses it has suffered recently. As of shortly before 9 a.m. ET, futures on the Dow Jones Industrial Average (^DJI -0.98%) were up 251 points to 33,477. S&P 500 (^GSPC -0.46%) futures had gained 56 points to 4,235, while Nasdaq Composite (^IXIC -0.64%) futures had jumped 242 points to 13,251.
Most headlines have focused on the tech giants that have reported their latest financial results this week. However, there are plenty of old-economy stocks that are also contributing to the positive mood within the investing community Thursday morning. Below, you'll learn why investors are pleased with what fast-food giant McDonald's (MCD -0.42%) and credit card specialist Mastercard (MA -0.08%) said about their latest results.
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There's gold in those arches
Shares of McDonald's were up nearly 2% in premarket trading on Thursday morning. The fast-food franchise leader has done a good job surviving the COVID-19 pandemic, and the company appears to be on solid footing as it considers further growth efforts.
McDonald's first-quarter performance was generally strong on the sales front. Revenue rose 11% on an 11.8% rise in global comparable sales, with McDonald's reporting positive comps in all of its segments. Gains were particularly strong internationally, helping to lift the relatively modest 3.5% rise in U.S. comps.
However, McDonald's did face pressures on its bottom line. The suspension of operations in Russia, the costs of some inventory that will go unused due to store closures, and certain other extraordinary factors caused earnings per share to fall 28% year over year to $1.48. However, after accounting for those factors, adjusted earnings of $2.28 per share rose 19% from year-ago levels.
McDonald's hasn't been immune to the impacts of the pandemic on restaurant stocks, including pressure on labor availability and wages. However, investors have been impressed at efforts to optimize menu pricing while embracing digital ordering and other technology, and that could help McDonald's business over the long run.
Priceless performance from Mastercard
Shares of Mastercard fared even better in premarket trading Thursday morning, rising between 2% and 3%. The credit card giant has seen its stock hold up incredibly well during the recent downturn, and its first-quarter financial results showed that its business is keeping up its forward momentum.
Mastercard saw considerable growth during the quarter. Revenue of $5.2 billion was up 24% from year-ago levels, while operating income jumped an even healthier 34% year over year. That helped bolster Mastercard's bottom line, with adjusted net income soaring 55% to $2.7 billion. That translated into adjusted earnings of $2.76 per share, up 59% from year-ago levels and surpassing investor expectations.
The big boost that Mastercard investors had been waiting for came from cross-border transactions, where volume jumped 53% from year-ago levels. That signaled that travelers are starting to hit the road again, as pandemic-imposed travel restrictions start to lift in much of the world. In addition, Mastercard got solid gains from its cybersecurity, intelligence, data, and related services divisions, showing that the company is about more than just clearing payments.
It's likely that pent-up demand for travel will create a brief surge in activity that could eventually give way to lower but more sustainable levels of activity. For now, though, investors are pleased to see Mastercard continue to outpace its competition and maintain its leadership role in the payments space.
