This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stock Futures Fall as GE, McDonald's Disappoint

Stocks in this article: ^DJI ^GSPC ^IXIC MSFT GOOG GE MCD CMG AMD

NEW YORK ( TheStreet) -- Stock futures were falling Friday after General Electric (GE) missed top-line estimates and McDonald's (MCD) fell short on bottom-line targets, just a day after Google (GOOG) and Microsoft (MSFT) posted disappointing results.

General Electric posted in-line third-quarter earnings of 36 cents a share, while revenue came in at $36.35 billion, falling short of analysts' expectations of $36.94 billion. The company said that the global economy remains uncertain.

Shares were down nearly 2.5% in premarket trading.

Shares of McDonald's were declining more than 2.5% after the fast-food giant posted a quarterly profit of $1.43 a share, below analysts' calls for a profit of $1.47 a share, as the stronger dollar weighed on results abroad and the fast-food giant faced stiffer domestic competition,

Revenue came in at $7.15 billion, as expected.

Investors were also awaiting existing home sales data and assessing developments out of the second-day of meetings between European Union leaders in Brussels, where issues surrounding more financial aid for Spain weren't addressed.

"In a celebrated instance of kicking the can down the road, the EU summit appears to have delayed any difficult decisions on the Euro banking union until next year," Paul Donovan, global economist at UBS, commented. "A 'legal framework' is reportedly agreed, but the obstacles to overcome are more political than legal."

Futures for the Dow Jones Industrial Average were sliding 42 points, or 40.94 points below fair value, at 13,445. Futures for the S&P 500 were down 3.10 points, or 3.89 points below fair value, at 1448. Futures for the Nasdaq were behind by 3.75 points, or 9.57 points below fair value, at 2729.

"Between now and year end, we see largely range-bound equity markets and higher volatility," said Jordan Waxman, managing director at Hightower. "The backdrop is that on the one hand, the environment for stock investing is benign, as interest rates and inflation are low, corporate profits are healthy and valuations are not stretched. However, earnings growth is decelerating -- some of which is not yet forecasted by the analyst community -- and there is still plenty of slack in labor and housing, uncertainty over the fiscal picture in the U.S. and over the health of sovereigns abroad."

The National Association of Realtors is forecast by economists to say that existing home sales fell to a seasonally adjusted annual rate of 4.75 million in September from 4.82 million in August. The report is due at 10 a.m. EDT.

"The U.S. has existing home sales data, forecast flattish but with some potential for upside surprises," said Donovan.

The major U.S. equity averages finished lower Thursday after the surprise early release of disappointing quarterly results by Google threw the markets for a loop.

The Mountain View, Calif.-based company earned $9.03 a share on revenue of $11.33 billion during the third quarter. Analysts were looking for earnings of $10.65 a share and sales of $11.862 billion.

Google shares fell 8% during Thursday's regular session to $695, and were wavering in premarket trading Friday.

After the markets closed on Thursday, Microsoft, the software giant, reported a year-over-year decline in operating income for its fiscal first quarter, citing slow PC demand ahead of its Windows 8 launch. Quarterly profit fell 22%.

Shares were off close to 2% in premarket trading Friday.

The FTSE 100 in London was down 0.14% and the DAX in Germany was falling 0.49% in trading Friday. The Nikkei Average in Tokyo finished up 0.22% and the Hong Kong Hang Seng closed up 0.15%.

December crude oil futures were up 29 cents at $92.82 a barrel. December gold futures were falling $8.10 at $1,736.60 an ounce.

The benchmark 10-year Treasury was rising 8/32, diluting the yield to 1.808%. The dollar was up 0.13%, according to the dollar index.

In other corporate news, Chipotle Mexican Grill (CMG), the restaurant operator, reported Thursday below-consensus third-quarter results and said it sees flat to low single-digit same-store sales in 2013.

Shares were plunging more than 11%.

Chipmaker Advanced Micro Devices (AMD) reported a deep third-quarter loss on Thursday, said it plans to cut 15% of its work force, and forecast a sequential decrease in revenue of 9% or so for the fourth quarter.

Shares were down close to 2%.

--Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs