NEW YORK—Stocks rallied on Thursday afternoon as earnings optimism from major Dow Jones components sent the Dow above 10,000 points for the second time this month. Investors also cheered the Obama Administration's plans to curb executive pay.
McDonald’s Profit Tops View, Sales Soar
McDonald’s Corp., the world’s largest restaurant chain, said third-quarter profits jumped to $1.3 billion, exceeding last year’s results and beating analyst estimates.
The fast food giant—which touts convenience and value—continued to benefit from a weak global economy. The restaurant’s $1 menu, as well as new coffee offerings from its McCafe services won over consumers. The company met or beat its targets in every region, but sales gains were the strongest in Asia and Australia, the company said.
“For October, despite a declining informal eating out market around the world, we expect consolidated comparable sales to remain positive,” said CEO Jim Skinner in a statement.
AT&T Earnings Flat, Sees Wireless Surge
AT&T Inc., the second-largest U.S. wireless carrier, said it gained 2 million net customers during the third quarter, outpacing all competitors.
Net income for the quarter was $3.28 billion, around the same amount as the same period last year. The company saw exceptional results from its wireless business, where the popularity of Apple’s iPhone and a recent price cut of the iPhone continued to drive its success.
Just prior to the start of the third quarter, Apple Inc. released a new model of the iPhone and AT&T proceeded to cut the price of the previous generation to under $100.
Kimberly-Clark Boosted by Cost Cutting, H1N1
Beauty and household consumer products maker Kimberly-Clark Corp. reported stronger-than-expected fiscal second-quarter earnings on Thursday, boosted by aggressive cost cutting and demand for H1N1 face masks.
The Irving, Texas-based maker of Huggies diapers, Kleenex tissues, and Cottonelle toilet paper reported net income of $582 million, mainly due to lower energy and wood pulp prices. In addition, the company said that the recent H1N1 virus scare increased sales of face masks worldwide.
