On Monday, McDonald’s (MCD) kicked off the quarterly earnings week. The stock gained 3.74% to close at $261.42, despite posting flat revenue growth.
McDonald’s posted revenue of $6.5 billion. Non-GAAP EPS was $2.97, hurt by a drop in global comparable sales (-1.0%). Markets dismissed the weak sales results, turning its hopes to the company’s $5 Meal Deal strategy. The firm will expand its market share by opening around 2,100 restaurants in 2024. This will contribute to nearly 2% of global sales.
This morning, markets will look for any optimism in PayPal’s (PYPL) results and outlook. The stock tried to break out above $65.00, only to fall every time. PYPL stock opens at below $59, with limited upside in the medium term. Its forward price-to-earnings ratio is still unfavorable at 14 times. Investors could buy JP Morgan (JPM) at a forward P/E of 12.37 times and get paid a 2.17% dividend yield.
Markets will also watch Pfizer (PFE) stock today. Ahead of its Q2 results, the firm cut 150 staff at its North Carolina site. It is letting go of workers involved in the abandoned Duchenne muscular dystrophy gene therapy project.
After the market closes, expect volatility in technology stocks. Microsoft (MSFT), Pinterest (PINS), First Solar (FSLR), and Advanced Micro Devices (AMD) will post Q2 results.
