Schaeffer's Trading Floor Blog

Buzz Stocks: McDonald's, News Corp, RailAmerica, and NASDAQ

Today's stocks to watch include MCD, NWS, RA, NDAQ, TWX, HAL

by 7/23/2012 9:37 AM
Stocks quoted in this article:

U.S. stocks suffered a sharp pullback right out of the gate this morning as euro-zone concerns continue to dominate headlines and churn investors' stomachs. Spain reported a 0.4% drop in its quarterly gross domestic product, reflecting its third straight quarter of contraction. Meanwhile, earnings season is ramping up to a fever pitch, and the news isn't all good. Here are some stocks in the news as we prepare to kick off the week:

  • Earnings news: Halliburton Company (NYSE:HAL - 30.77) said earnings and revenue both topped analysts' estimates. Per-share earnings were virtually flat and revenue was up 22% from the previous year (CBS News); Coca-Cola Enterprises Inc (NYSE:CCE - 26.84) reported per-share results that were in line with the consensus view, though sales for the quarter declined more than 85 (Reuters); Hasbro, Inc. (NASDAQ:HAS - 33.84) sales dropped 11% during the latest quarter but earnings per share managed to top analysts' expected results (NASDAQ); Second-quarter earnings at McDonald's Corporation (NYSE:MCD - 91.58) dropped 4.5% despite a modest increase in revenue and stronger-than-expected same-store sales. (RTT News)

  • In Monday merger news, Genesse & Wyoming Inc. (NYSE:GWR - 55.98) is paying $1.39 billion to acquire RailAmerica, Inc. (NYSE:RA - 24.81). On a per-share basis, the offer is worth $27.50, or a nearly 11% premium from Friday's closing price. The merger will join the country's two largest short line and regional rail operators. (Chicago Tribune)

  • NASDAQ OMX Group, Inc. (NASDAQ:NDAQ - 22.37) has upped its payout offer to brokers negatively impacted by May's Facebook Inc (NASADAQ:FB - 28.76) IPO snafu. The compensation package has been lifted to $62 million from an originally proposed $40 million. (BusinessWeek)

  • Rupert Murdoch has resigned from three News Corp (NASDAQ:NWS - 22.23) boards, including News International. This move precedes the executive's plans to split the media company into entertainment and publishing units. (The Economic Times)

  • In the wake of last week's tragic events at an Aurora, Colorado premiere of The Dark Knight Rises, fans still turned out for the third installment in the Batman story, bringing ticket sales to more than $160 million and potentially making it the third-highest film debut ever. These numbers are third-party estimates, as Warner Brothers -- a division of Time Warner Inc. (NYSE:TWX - 38.86) -- neglected to report box-office numbers yesterday out of respect for grieving families. (Los Angeles Times)

  • And finally, those fees airlines keep tacking on are adding up. Last year, the world's 50 top airlines banked a record-setting $22.6 billion in ancillary revenue for baggage fees and other perks that used to come along with the price of a ticket. United Continental Holdings Inc (NYSE:UAL - 21.55) alone banked $5.2 billion in service fees; Delta Air Lines, Inc. (NYSE:DAL - 9.94) collected $2.5 billion. (USA Today)

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