Closing Bell Trading Targets: McDonald’s and Pandora
McDonald’s (NYSE:MCD) April same-store-sales numbers missed Wall Street expectations for U.S. comparable store sales of 5 percent, but McDonald’s delivered 3.3 percent growth. Worldwide sales gains matched the 3.3 percent sales in the U.S., but analyst consensus was for 4 percent.
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MCD shares have been in a textbook downtrend since after the first half hour of trading. Be on the look out for whether the stock breaks through the $93.60 resistance mark and triggers short covering into the bell. A lot will depend on how the indices do.
Pandora Media (NYSE:P) audience metrics for April were awesome. The streaming music company said Listener hours for Pandora during the month of April 2012 were 1.06 billion, an increase of 87% from 566 million during the same period last year. Share of total U.S. radio listening for Pandora in April 2012 was 5.95%, an increase from 3.11% at the same time last year.
We we were right this morning: today’s news sparked a nice wave of short covering. In fact, once the stock broke through resistance at $8.80, there was a huge spike blowing off shorts. After cooling, the stock traded nicely in an upward trend the remainder of the day. Watch out for whether profit takers fade into the bell, or whether shorts get scared about tomorrow and continue buying back in a frenzy.