Please ensure Javascript is enabled for purposes of website accessibility

How P&G and AT&T Have Dragged Down a Mixed Dow

By Dan Carroll - Apr 24, 2013 at 2:33PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Earnings take a toll on the index today despite Boeing's big gains.

The earnings beat marches on, and a few major releases are pulling the Dow Jones Industrial Average (^DJI 0.00%) in opposite directions today. The blue-chip index hasn't moved far, as a few top leaders and laggards are canceling out each other's movements. As of 2:20 p.m. EDT, the Dow has shed just 12 points, or 0.08%. Let's get caught up with the big news on the Dow.

Boeing soars as consumer goods and telecom stocks fall
Despite all the drama surrounding the 787 Dreamliner's grounding, Boeing (BA 2.79%) made the most of its first quarter in 2013 with an expectations-topping earnings release. The stock has risen 3.3% so far after Boeing reported net income of $1.44 per share, a year-over-year increase of more than 18%.

Halted Dreamliner deliveries did hit the company's revenue, which fell more than 2% compared to the year-ago quarter, but analysts and investors had expected some fallout from the grounding. Boeing did well at growing margins, particularly in its commercial airplane unit, where operating margin grew by 1.5 percentage points.

Unfortunately, not all companies on the Dow posted such welcome earnings releases. Procter & Gamble (PG 2.30%) shares have fallen 4.8% so far today after the company's revenue missed expectations despite rising 2% year over year. Earnings rose by 6% at P&G, but that wasn't enough to keep investors from bailing on the stock. The company's forecast for the fiscal fourth quarter has hurt the stock today, as P&G expects an earnings range below analyst expectations as tightening consumer wallets and a slowing product pipeline impact the company's financial footing.

AT&T (T 1.67%) similarly whiffed on revenue expectations when the telecom company reported earnings after the closing bell yesterday. Shares have fallen 5.4% so far to lead the Dow lower. The company's sales fell 1.5% to land short of projections, with landline revenue in particular dragging down results. Although the company's wireless business continues to perform well and earnings grew by more than 3%, AT&T still trails rival Verizon, the nation's leading mobile carrier. Verizon added more than double the number of contract customers that AT&T added last quarter.

Outside of earnings, Microsoft (MSFT 3.20%) is also among the Dow's leading stocks today, up 3.5%. Microsoft's business division, which includes its Office software, has performed well recently, growing sales by more than 5% this past quarter. The firm plans to expand Office to other devices in order to capitalize on the growing business, but investors received even more news today from the tech company. Microsoft signed Android-related patent deals with Chinese phone-maker ZTE and additionally confirmed a press event for its next-generation Xbox entertainment system on May 21, giving investors plenty to look forward to as the company attempts to advance in areas outside of the PC industry.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$31,261.90 (0.00%) $0.00
The Boeing Company Stock Quote
The Boeing Company
$124.07 (2.79%) $3.37
AT&T Inc. Stock Quote
AT&T Inc.
$20.74 (1.67%) $0.34
Microsoft Corporation Stock Quote
Microsoft Corporation
$260.65 (3.20%) $8.09
The Procter & Gamble Company Stock Quote
The Procter & Gamble Company
$145.05 (2.30%) $3.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.