Today, decent prospects, and great earning are what are taking stocks and the stock market to a higher level.
After two weeks of continuous losses, major averages are up after McDonald- the hamburger giant, General Electric, Schlumberger-the oil giant, and Microsoft made impressive gains, in the market. This was basically a better than expected result, that left most analysts at a loss for explanations.
David Einhorn's Greenlight Capital returned -2.9% in the second quarter of 2021 compared to 8.5% for the S&P 500. According to a copy of the fund's letter, which ValueWalk has reviewed, longs contributed 5.2% in the quarter while short positions detracted 4.6%. Q2 2021 hedge fund letters, conferences and more Macro positions detracted 3.3% from Read More
General Electric Company (NYSE:GE), the world’s largest maker of power generation equipment, jet engines, and powerful locomotives, rose 37 cents or 1.4% in the first quarter profits. This was a much higher figure than was provided by a number of analyses that had been done. This rise in earning was fuelled by an increase in the sale of energy equipment, as well as jet engines, and an increase in profits on its finance arm.
The numbers for GE are significant since it is global, and it is also a bellwether in its industry. In fact, it is a remarkable achievement given the fact that it has beaten the revenues, a feat that has been rather difficult over the years.
Schlumberger Limited (NYSE:SLB), the oil giant due to deep water activity, as well as global exploration in a number of regions around the world, rose by 5.3%, to be the biggest gainer in the S&P 500. This was a rise to $73.48 in shares, and this translated to a record breaking 38% increase in profits for the first quarter. This has actually been seen as an achievement that will be hard to repeat, and is the reason the stocks for this giant are being closely watched.
McDonald’s Corporation (NYSE:MCD), the hamburger giant, and the largest restaurant chain in the world had a 4.8% gain, in its first quarter profits, as new foods entered its menu. The chicken McBites and McCafe drinks were viewed as major drivers to this gain. Net earnings in the period rose to $1.27 billion, up from $1.23 billion or an increase of $1.23 a share. This development has been as a sign that McDonald’s Corporation is taking the market share and beating its competitors massively.
Honeywell International Inc (NYSE:HON), a company that makes work boots, and digital flight controls increased to, $1.90 to make $59.90 a share. This was a great showing that basically boosted its whole year forecast. This was one of the more surprising showing that beat most estimates put forward by analysts.
In fact, of the a hundred or so components reported, 81.9% totally beat any forecasts that had been put forward. This therefore shows a change in the direction traditional giants are taking, and the rise of hitherto unknown players.