Market Recap: Yahoo CEO is Sorry, McDonald’s Disappoints
Markets closed down on Wall Street today: Dow -0.59%, S&P -0.43%, Nasdaq -0.39%, Oil -0.51%, Gold -2.04%.
On the commodities front, Oil (NYSE:USO) declined to $97.46 a barrel. Precious metals also declined, with Gold (NYSE:GLD) falling to $1605.50 an ounce while Silver (NYSE:SLV) fell 0.63% to settle at $29.44.
Here’s your Cheat Sheet to today’s top stock stories:
Chesapeake (NYSE:CHK) gave CEO Aubrey McClendon explicit license to play the markets in its latest employment contract, according to a Reuters exclusive, in one of corporate America’s most generous compensation plans. McClendon was granted the permission after he had already begun trading commodities for himself.
Another CEO in trouble, Yahoo! Inc.’s (NASDAQ:YHOO) CEO Scott Thompson apologized to employees Monday for having misrepresented himself on his resume; he doesn’t plan to step down, despite numerous calls to resign, especially by Daniel Loeb, manager and founder of hedge fund Third Point LLC. He sent a letter on Thursday to Yahoo’s board asking that Thompson be fired for having falsified his academic record. Yahoo subsequently confirmed that while Thompson had listed computer science on his degree, he had never been awarded that degree. Loeb is currently in a proxy fight as he tries to wrest control from the current board.
Further Reading: What Will Be Scott Thompson’s Fate?
Wells Fargo (NYSE:WFC) said federal prosecutors may seek damages and penalties after investigating whether it violated anti-discrimination laws in financing home loans. “The Department of Justice has advised Wells Fargo that it believes it can bring claims,” the bank said today in a regulatory filing. “We believe such claims should not be brought and continue seeking to demonstrate to the Department of Justice our compliance with fair-lending laws.”
Walt Disney Company (NYSE:DIS) released its fiscal second-quarter earnings after the bell and surpassed analysts’ estimates. Earnings, excluding items, were $0.58 cents per share, rising from $0.49 cents per share in the previous year while revenue increased 6 percent to $9.63 billion, up from $9.08 billion from the same period last year. In after-hours trading, the stock increased 1.24 percent.
McDonald’s (NYSE:MCD) April global rose only marginally, weighed down by slower growth at its U.S. operations, which missed analysts’ forecasts. U.S. same-restaurant sales were up only 3.3 percent as compared to analysts’ estimates for a 5 percent rise. Disappointing growth was attributed by one analyst to the restaurant chain’s new-found thrust on pricier menu items, such as 20-piece Chicken McNuggets, that may not have proved popular with budget-conscious customers still wary of the economy.
Don’t Miss: Apple Claws its Way to the Top of This List.