Premarket, futures are down hard on fears Spain will need a full bailout. Gainers this morning include NRG, CVC, HAS, HOG and WIN while losers include AON, GNW, WMB and NBR. CME is also showing down -80% in places but fear not, its bad data as CME is undergoing a 5 for 1 stock split this morning and is currently showing down -0.02%.
The Dow is looking to open down -200 points.
McDonald’s reported a earnings miss this morning, blaming slowing sales and strong dollar. McDonald’s Corp. net income slipped 4 percent in the second quarter as a result of unfavorable currency exchange rates and a slowing global economy. Global sales at restaurants open at least a year rose 3.7 percent for the quarter, with gains in every region of the world but is pressured by the strong dollar.
MCD reported earnings of $1.35 billion, or $1.32 per share, down from $1.4 billion, or $1.35 per share, in the year-ago period. The strong dollar hit its results by 7 cents per share. Total revenue for the quarter was $6.92 billion, up a tiny bit from $6.91 billion a year ago. Estimates were for $1.38 per share. MCD is currently down -2.82%.
European stocks were deep in the red in morning trading and Asian markets ended sharply lower.
The yield on the 10-year Spanish bond jumped to a euro-area record high of 7.565% from 7.267% Friday. Spain’s leaders have said that 7% is an unsustainable level. This is also a level that flashes the first bailout signals.
Earnings reports: McDonalds (Consensus $1.38), BIDU-Baidu (1.13), VMW-Vmware (0.66), TXN-Texas Instruments (0.41), GAL-Halliburton (0.75), ETN-Eaton (1.09), CCE-Coca-Cola (0.73), CE-Celanese Corp (1.39), VNTV-Vantiv (0.28), HAS-Hasbro (0.24), FNF-Fidelity National (0.48), WCN-Waste Connection (0.36), RPM-RPM Intl (0.61), ZION-Zions Bancorp (0.35), IEX-Idex (0.71), STLD-Steel Dynamics (0.20), HXL-Hexcel (0.39), WWD-Woodward (0.45), CR-Crane (0.94).
0830 ET Chicago Fed June national activity index, May -0.45.
1100 ET USDA weekly grain export inspections.
1130 ET Weekly 3-mo and 6-mo T-bill auctions.
1600 ET USDA Crop Progress.
1900 ET Fed’s Raskin speaks in Boulder, Colorado on community banking.