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Stocks climb on upbeat earnings

Monday, May 04, 2015 - 01:27

The major U.S. indexes closed higher on Monday as corporate earnings came in better than feared, although shares of McDonald's declined after the fast-food chain's turnaround plan left investors wanting more. Bobbi Rebell reports.

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Bullish economic data propelled stocks higher. Orders for manufactured goods rose more than expected in March. It was the biggest increase in eight months. Comcast couldn't take over Time Warner Cable, but it did well being solo. Strong growth in broadband helped boost quarterly profit which beat estimates. AMC Networks is walking tall. Ad revenue from hit original programming like "The Walking Dead" and "Better Call Saul" pushed profit up 69 percent. McDonald's shares edged lower after it unveiled its restructuring plan. Investors were left hungry for details on how the restaurant chain would change consumer perceptions of food quality and slow service. It was the Dow's biggest loser. Technomic's Dave Henkes: SOUNDBITE: DAVID HENKES, GLOBAL FOOD CONSULTANT, TECHNOMIC (ENGLISH) SAYING: "What I missed was a lot more specifics around what they're going to do with the menu and the brand. And, so, there was a lot of lofty talk about changes to the organization that are going to log value, but that's about all I heard." Salesforce.com's shares fell after German business software giant SAP said it's not considering buying the U.S. cloud software company. It was one of the biggest drags on the Nasdaq. The purchase of Hillshire Brands helped beef up Tyson Foods' profit. Sales of prepared foods like Hillshire's Jimmy Dean sausages more than doubled in the quarter. Manufacturing data was strong in Germany, too, and that helped lift European share in thin trade.

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Stocks climb on upbeat earnings

Monday, May 04, 2015 - 01:27