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Stocks Experience Mixed Day on Wall Street

Strategic Insights

— 2 min read

Shares of McDonald's (MCD) declined by $2.06, reaching $33.38 after Merrill Lynch described the chain's May sales as "discouraging," with it being the worst month in two years. McDonald's remains optimistic that earnings per share in 2000 will be in the upper half of the 10-15% growth range. Lucent Technologies (LU) fell $3.19 to $59.69 following a reduction in profit estimates by Lehman Brothers from $1.45 to $1.40 per share for 2000. The company's revenue and earnings forecasts are declining, contrasting with the rising forecasts of its peers. In contrast, CenturyTel (CTL) rose $2.94 to $30.94 after being rated "buy" in new coverage by Lehman Brothers.

Key Takeaways:

  • McDonald's (MCD) reported "discouraging" sales in May, the worst month in two years, with a decline of $2.06 to $33.38.
  • McDonald's remains optimistic about 2000 earnings, projecting the upper half of the 10-15% growth range.
  • Lucent Technologies (LU) fell $3.19 to $59.69 after Lehman Brothers reduced its 2000 profit estimates from $1.45 to $1.40 per share.
  • Lehman Brothers lowered its 2001 estimate for Lucent from $1.75 to $1.68 per share.
  • CenturyTel (CTL) rose $2.94 to $30.94 following a "buy" rating from Lehman Brothers.
  • H&R Block (HRB) fell $2.69 to $28.69, missing analysts' average estimate of $2.71 a share with earnings of $2.52 to $2.55 per share for the year ended April 30.
  • Mylan Laboratories (MYL) expects per-share profit to be 14-17 cents for the first quarter, below the 31-cent average estimate.
  • Reader's Digest Association (RDA) rose $1.50 to $37.50 following speculation that it may be acquired by Bertelsmann AG for $5.8 billion to $6.3 billion.
  • MicroStrategy (MSTR) rose $18.13 to $62.25 on speculation of getting $50 million to $100 million in financing for its Strategy.com unit.
  • Quokka Sports (QKKA) rose $2.38 to $7.75 after acquiring a 71% stake in Golf.com.

Statistics:

  • McDonald's (MCD) shares fell $2.06.
  • Lucent Technologies (LU) shares fell $3.19.
  • CenturyTel (CTL) shares rose $2.94.
  • H&R Block (HRB) earnings per share are expected to be $2.52 to $2.55.
  • Mylan Laboratories (MYL) expects per-share profit to be 14-17 cents for the first quarter.
  • Reader's Digest Association (RDA) may be acquired by Bertelsmann AG for $5.8 billion to $6.3 billion.
  • MicroStrategy (MSTR) shares rose $18.13.

Sources:

  • "Shares of McDonald's (MCD) Friday fell $2.06 to $33.38 after Merrill Lynch called the restaurant chain's May sales in stores open at least a year 'discouraging,' the worst month in two years."
  • "Lehman Brothers cut its 2000 profit estimates to $1.40 a share from $1.45 for Lucent Technologies (LU). The 2001 estimate was cut to $1.68 from $1.75."
  • "CenturyTel (CTL) rose $2.94 to $30.94. The local telephone service provider was rated 'buy' in new coverage by Lehman Brothers."
  • "H&R Block (HRB) fell $2.69 to $28.69. The tax-preparation company warned that it expects earnings of $2.52 to $2.55 a share for the year ended April 30, missing analysts' average estimate of $2.71 a share."
  • "Mylan Laboratories (MYL) fell $6.31 to $17.31. The generic-drug maker said it expects per-share profit for the first quarter ending June to be 14 cents to 17 cents a share, well below the 31-cent average estimate of analysts."
  • "Reader's Digest Association (RDA) rose $1.50 to $37.50. Business Week reported the publisher and direct marketer of magazines, books, videos and records may be in talks to be acquired by Bertelsmann AG for $5.8 billion to $6.3 billion."
  • "MicroStrategy (MSTR) rose $18.13 to $62.25. The maker of data-delivery software rose on speculation that it's close to getting $50 million to $100 million in financing for its Strategy.com unit, analysts said."

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