Spreadex Market Update
Dow Jones edges higher despite limp services PMI as McDonalds beats Q1 estimates
With earnings per share at $1.23 (against the $1.16 expected) off the back of $5.90 billion in revenue (around $0.07 billion higher than expected) McDonalds’ first quarter figures seemed to suggest the company’s recently implemented turnaround plan is slowly taking effect. Like-for-like US sales rose 5.4%, largely thanks to the impact of the long-awaited all-day breakfast menu, whilst international sales were similarly strong with a 6% increase (in part benefiting from the extra day thanks to it being a Leap year). This took Maccy D’s around half a percent higher after the bell, in turn dragging the Dow Jones up by 20 points. The US index likely would have been higher if it weren’t for the afternoon’s flash services PMI, coming in at a far worse than forecast 50.8, its worst reading since September 2009.
In stark contrast to the minor gains see in the US the FTSE plunged by nearly 80 points as the afternoon continued, the index suffering under the weight of its falling commodity stocks. It’s a limp end to what was looking like an incredibly strong week, the FTSE now nearing 6300 after being as high as 6430 on Thursday.
Over in the Eurozone the DAX and CAC saw their gains shrink, if not completely disappear, as the day went on, vaguely positive chatter from the morning’s Eurogroup meeting easing some of the markets’ fears. Yet there is still plenty to do if Greece is to avoid defaulting on the whopping €10 billion in debt repayments it faces over June and July, the region’s finance ministers expected to meet once again next Thursday to try and hash out a deal.
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