Dow Futures

The Dow Jones Industrials (INDEX: ^DJI  ) fell again today, closing down 125 points, or about 1%, on an increasingly bleak outlook in Europe. If May trading was a boxing match, the equity markets left Round 10 wobbling back to their corner. That’s not to say the Dow didn’t get in a couple of good punches, though. In fact, the Dow landed a nice jab from Merck (NYSE: MRK  ) and a solid cross from Cisco (Nasdaq: CSCO  ) today. Unfortunately, 27 of the 30 Dow components couldn’t handle the barrage of uppercuts coming out of Greece.

Even though the only “winning” going on today had more in line with Charlie Sheen than the 1996 Chicago Bulls, let’s go through some of the top performances.

Networking company Cisco overcame today’s broad-based weakness to post a 1.27% gain on the day, leading all Dow components. While the relative outperformance was a likely reversion to the mean following a sharp sell-off last week, it’s an encouraging sign that shares have perhaps found near-term support at current levels. Joining Cisco in positive territory today was pharmaceutical giant Merck, rising 0.45%. With Treasuries trading at record low yields, Merck’s hefty 4.4% dividend yield and health-care exposure provided a relatively defensive safe haven for investors looking for limited risk and yield.

Away from the Dow, shares of Groupon (Nasdaq: GRPN  ) soared 18.5% in anticipation of their first-quarter earnings announcement after the market closed. The results were encouraging, with revenue surging 89% versus analyst expectations of 79% growth and earnings per share of $0.02 coming in line with the consensus outlook. Better yet, revenue guidance for second quarter of $550 million to $590 million came in 5% above current estimates on the high end of the range. Will this news shed the daily-deals juggernaut of its “dog” status? Investors appear to think so, with shares up an additional mid-teens percentage in after-hours trading. At that rate, shares will begin tomorrow’s trading more than 35% above Friday’s closing price.

Also performing well today on encouraging news was a company best known for its share of negative headlines lately. Chesapeake Energy (NYSE: CHK  ) shares rose 4.8% on the day as investors took comfort that former large shareholder, notorious bargain hunter, and, perhaps most importantly, activist investor Carl Icahn has taken another large stake in the natural gas producer. Shareholders needed the reprieve, too, as shares took a nasty 14% hit Friday following liquidity concerns, which have since been addressed by a $3 billion loan from Goldman Sachs and Jefferies.

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Nearly all of the members of the Dow Jones Industrials (INDEX: ^DJI  ) have already told us about how their fourth quarters went. But in the coming week, we’ll hear from four of the last Dow components to report and get their takes on the state of the overall economy.

With the Dow at multiyear highs, investors are optimistic. Any contrary news from these four stocks could be a big surprise. Let’s take a closer look at the four companies reporting earnings early this week.

Wal-Mart (NYSE: WMT  )
At first glance, Wal-Mart seems to be on top of the world. Analysts expect it to report its 12th straight quarter of growing earnings per share, with estimated profit of $1.45 per share representing a potential record for the company.

But despite its good earnings record, Wal-Mart has struggled to keep sales up. Just last quarter, the retailer broke a long streak of declining same-store sales. What investors will look for, though, is exactly how the holiday season went and the extent to which Wal-Mart had to make sacrifices on profit margin to move its merchandise. Without strong numbers, Wal-Mart could continue to worry investors for the foreseeable future.

Home Depot (NYSE: HD  )
By contrast, you might expect Home Depot to be coming out of a long stretch of bad performance. With the housing market having been in the dumps for years, home improvement might seem like a bad place to be.

But Home Depot appears poised to post its ninth straight improvement in quarterly earnings, and its stock has already put in some stellar performance in recent months. As often happens, the stock appears to have anticipated the recent turnaround in the housing market, and as positive data starts to pour in, the company could see even more success. In particular, the settlement between states and mortgage lenders could clear the way for thousands of foreclosures to go forward, putting more supply on the market and driving up demand for materials to renovate those properties after they’re sold. An economic reversal could destroy that bull argument, but for now, Home Depot looks pretty compelling.

Kraft Foods (NYSE: KFT  )
Kraft can’t claim a long string of better earnings results, but it can expect decent growth from year-ago levels. Analysts expect earnings of $0.57 per share Tuesday, up from $0.46 in 2010′s fourth quarter.

But more important than its coming earnings will be whatever news Kraft gives about its upcoming spinoff. The recent Diamond Foods scandal has thrust snack companies into the limelight, which puts Kraft’s global snacks business in an extremely strong position to try to make strategic moves to keep up with its competitors. Meanwhile, the higher-margin U.S. grocery business could get some attention from investors who prefer a more conservative play on domestic growth. Shares are already up sharply in advance of the spinoff, so bad news could bring swift retribution to the stock.

Hewlett-Packard (NYSE: HPQ  )
HP comes into earnings season expecting to post greatly reduced earnings. The big question for HP, however, is how the latest in a long string of CEOs is doing in her turn at the reins.

Meg Whitman has tried to reassure investors and customers alike that the company will be there to stand behind its products. HP won’t stop selling computers, but it is interested in figuring out how to boost its growth by trying to make the most of its software business. More than anything, Whitman needs to act like the leader that HP simply hasn’t had for a while. With the stock at bargain prices, even minor successes should bring rewards to patient shareholders.

Looking beyond the next quarter
Even after all the Dow companies post their earnings, it won’t be time to give up. Often, what happens between quarterly reports holds the key to understanding whether a company will succeed or fail in the long run.

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It’s official, folks: The Dow Jones Industrial Average (INDEX: ^DJI  ) skated by previous records to close at multiyear highs today. The index, comprised of 30 blue-chip stocks, closed at 12,878 for the day, eclipsing the high water mark set in May 2008.

So what’s the fuel that pushing the index higher? Greece. Though the debate about Greek debt seems stuck in a Mobius strip of never-ending back-and-forth indecision, there seems to be just a little progress today as Greece made moves towards securing international aid.

The news had a positively impact on all three of the major indices today, with each one ending in the black. Here’s a look how each one fared.

The Big Movers
Today was an especially good day for a few Dow components, most notably McDonald’s (NYSE: MCD  ) . The burger-slinger closed up 1.43% for the day, pushing share prices to just over $100. The Golden Arches recently reported strong December sales and fourth-quarter earnings, but on the day they released shares, was down 2% on foreign-exchange concerns. Enter Yum! Brands (NYSE: YUM  ) , which reported impressive earnings last night on strong Chinese growth. Investors are likely transposing Yum!’s strong Asian performance onto McDonald’s, and forgetting their prior concerns about weakness. Yum! was up 2.6% for the day.

The yin to McDonald’s yang, Bank of America (NYSE: BAC  ) was the worst-performing Dow stock of the day. The big bank fell 1.5%, despite positive news out of Greece. Because positive European news usually sends banks higher, many investors are left scratching their heads. My best guess is that the banks are further away from a mortgage-fraud settlement than was previously expected. The man likely behind it? Eric Schneiderman, the boogie man of the big banks right now — he seems intent on investigating them, and his Friday lawsuit filings will ensure they don’t sleep easy. Citigroup (NYSE: C  ) was correspondingly down at market close.

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The Dow Jones Industrial Average (INDEX: ^DJI  ) is falling for the second day in a row as investors await news of the Greek bailout package discussions. Also, two Dow components report earnings today. At 10:30 a.m. EST, the Dow was down 27 points to 12,818.

The Greek bailout discussions have been ongoing for some time now. There are two things investors are worried about. The first is that if conditions in Greece and the rest of Europe continue to worsen, the U.S. will also experience a slowdown in growth. This would likely happen if there is no bailout of Greece. The second worry is that if bailout measures are too harsh, Greece could be a brake on growth in the region for some time to come.

On the earnings front, Coca-Cola (NYSE: KO  ) reported strong earnings this morning. Last year’s earnings were given a huge boost from Coca-Cola’s consolidating Coca-Cola Enterprise’s North American bottling operations. As such, adjusted earnings per share fell year over year by 70% to $0.79, however this was above analyst expectations of $0.77 per share. Revenue was $11.04 billion, above analyst expectations of $10.99 billion. In early trading, Coca-Cola is up 1.73%.

Disney (NYSE: DIS  ) reports earnings after the market close. Analysts expect earnings per share of $0.72 and revenue of $11.18 billion. In other Disney news, The Wall Street Journal is reporting Disney might partner with Univision Communications to create a 24-hour cable news channel targeting Latinos. In early trading, Disney is down 0.2%.

The best approach
Watching the broad market each day is exciting, gut-wrenching, and stressful, but investing doesn’t have to be. If you’re in the mood to pick up a great company to buy for the long term, check out The Motley Fool’s brand-new free report: “The Motley Fool’s Top Stock for 2012.” It features a company hand-selected by the Fool’s chief investment officer that has a strong future ahead of it. Get access to the report and find out the name of this legendary company. The report is free but won’t be available forever, so check it out today.

The Dow Jones Industrials Average (INDEX: ^DJI  ) has been on the move in 2012, up an impressive 5.14% for the year to date. That shouldn’t be a big surprise, though, as 23 of The Dow’s 30 components have gained for the year. Of the seven with negative YTD performance, three are near zero.

Yet not every day can be a big win for the index, as today demonstrated. Markets opened sharply lower for the morning and then crawled back to a smaller loss by market close. Here is a look at how the big three indices fared today:

It was a yawn-inducing Monday for most investors, but that doesn’t mean every stock put up a boring performance. Here is a look at the three Dow components with the biggest losses today.

• The Travelers (NYSE: TRV  ) was the worst-performing Dow stock today, losing 1.3%. The most obvious reason for the drop was what appears to be another stalling of the Greek debt situation. Fortunately, the majority of Travelers business is U.S.-based, so it shouldn’t suffer too badly from the situation. However, the nature of finance and insurance industries is ever more interconnected, so ripples may spread further than is justified.
• Pfizer (NYSE: PFE  ) was the second biggest loser for the day, erasing 1.2% of their stock price by day’s end. Not only was it down today, but it’s also one of the three worst Dow stocks this week. While there were no big storylines out of Pfizer today, the company recently had to recall 1 million birth-control packs. Couple that with the loss of the Lipitor patent, and the company could be in for a rough 2012.
• Next up on the loser train is Boeing (NYSE: BA  ) . The massive manufacturer revealed that the tail section of its 787s will need repairs. Fortunately, there is no safety concern at this time, which is perhaps why the shares were down only 1%. That could be good news for Boeing’s competitor Lockheed Martin (NYSE: LMT  ) . The rival defense contractor recently inked the deal for the largest defense contract ever and is likely to pilot itself to riches as it sells its F-35 radar-evading jets. The big question for investors now is whether the defense-based Lockheed will out-earn the more consumer-facing Boeing in the next few years.

Looking past today
Watching the market pop and drop each day can be exciting, but it’s also hazardous to your health. Here at The Motley Fool, we advocate for buying and holding great companies for the long term.

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Most of the members of the Dow Jones Industrials (INDEX: ^DJI  ) have already told us about how their fourth quarters went. But earnings season isn’t quite over yet.

With Europe casting a shadow over the markets today, the reports that major companies make can definitely move the market. So let’s take a closer look at the two Dow components that report their earnings tomorrow.

Coca-Cola (NYSE: KO  )
Beverage giant Coca-Cola is hoping that the fourth quarter will mark its ninth straight quarter of growing earnings per share. Analysts expect to see EPS of $0.77, up from last year’s $0.72, when the company reports before the bell tomorrow morning. That’s also a better growth record than rival PepsiCo (NYSE: PEP  ) , which saw an earnings decline in last year’s first quarter and is set to post its own earnings on Thursday.

What many don’t realize about Coke, however, is that beyond its money-making power, it also remains dedicated to sustainability. With efforts to reduce its carbon footprint, use recyclable packaging, protect water resources, and encourage community development, Coke seeks to keep its customer base aware of its efforts toward social responsibility. Combine this with its continued growth, and Coca-Cola is positioned for the long run regardless of what it announces tomorrow.

Disney (NYSE: DIS  )
Disney is looking to expand on a string of four consecutive quarters of higher earnings per share. Analysts think the company will make it five tomorrow afternoon, expecting $0.71 per share in net income compared to $0.68 a year ago.

Even though Comcast and General Electric (NYSE: GE  ) are the companies that directly benefited from NBC’s broadcast of the Super Bowl last night, the big game refocused attention on sports media companies like Disney, whose ESPN cable franchise is immensely valuable. But the real story for Disney for longer-term investors is whether the economic recovery that we’ve started to see signs of will accelerate or collapse. People will only visit Disney’s theme parks or see 3-D versions of its movie library if they have the money to do so — but last week’s encouraging job numbers improve the odds that those potential customers will feel more flush in the months to come.

Coming into the home stretch
Even after all the Dow companies post their earnings, keep an eye on your stocks. Often, it’s what happens between quarterly reports that can make all the difference.

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The Dow Jones Industrial Average (INDEX: ^DJI  ) was up for a second day in a row after a second day of positive jobs data. At 10:15 a.m. EST, the Dow was up nine points to 12,725.

Today the Dow is up as jobless claims decreased last week by 12,000 to 367,000. Yesterday the market was up in reaction to data from ADP that showed private-sector jobs grew by 170,000 in January.

Leading the Dow up is Alcoa  (NYSE: AA  ) . The stock is up 1.76% to $10.37. Alcoa was one of last year’s worst-performing Dow components. There are some things to like about Alcoa, however, and Fool analyst Sean Williams thinks Alcoa will outperform the market over the next few years.

The best approach
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The Dow Jones Industrial Average (INDEX: ^DJI  ) jumped today as manufacturing data from around the world showed growth and ADP released data showing private-sector jobs growing by 170,000 in January.

Manufacturing data in Europe and China was better than expected and the Institute for Supply Managements U.S. manufacturing index rose to an eight-month high. On the jobs front, ADP reported that nonfarm private employment rose 170,000 in January. Dropping unemployment is a good sign for the economy.

Top stock
Bank of America  (NYSE: BAC  ) was today’s top stock, up 3.23% to $7.36. Two weeks ago, Bank of America reported better-than-expected earnings for the fourth quarter, ending the year with positive earnings. While the stock has been moving up and down with the status of the Greek debt talks, investors should be most interested in the $25 billion settlement that Bank of America and other lenders are trying to enter into with states over their mortgage-servicing practices.

The biggest loser
One of just three down Dow components today, McDonald’s (NYSE: MCD  ) was today’s worst stock, down $0.66% to $98.40. After a banner year in 2011 some investors may be taking profits on the stock, Fool analyst Jim Royal believes McDonald’s is still a must-own stock.

The best approach
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The Dow Jones Industrial Average (INDEX: ^DJI  ) was up as manufacturing data from around the world showed growth and the ADP released data showing private-sector jobs grew by 170,000 in January. At 1:45 p.m. EST, the Dow was up 131 points to 12,764.

Leading the Dow on a day when 28 of the 30 Dow components are up is Bank of America  (NYSE: BAC  ) . The stock is up 3.84% to $7.40. Two weeks ago, Bank of America reported better-than-expected earnings for the fourth quarter, ending the year with positive earnings. While the stock has been moving up and down with the status of the Greek debt talks, investors should be most interested in the $25 billion settlement that Bank of America and other lenders are trying to enter into with states over their mortgage servicing practices.

The best approach
Watching the broad market each day is exciting, gut-wrenching, and stressful, but investing doesn’t have to be. If you’re in the mood to pick up a great company to buy for the long term, The Motley Fool has created a brand-new free report: “The Motley Fool’s Top Stock for 2012.” It features a company hand-selected by the Fool’s chief investment officer that has a strong future ahead of it. Get access to the report and find out the name of this legendary company. The report is free, but won’t be forever, so check it out today.

The Dow Jones Industrial Average (INDEX: ^DJI  ) is falling for the second day in a row as GDP data fell short of expectations and two Dow components reported earnings. At 1:30 p.m. EST, the Dow was down 83 points to 12,651.38.

The U.S. Commerce Department released GDP data this morning that showed GDP rose 2.8% in the fourth quarter, faster than the previous quarter’s 1.8% growth. However, 2.8% was below analyst expectations of 3% growth.

Adding to the negative data were Chevron‘s (NYSE: CVX  ) earnings. The company missed lowered analyst expectations for both earnings per share and revenue. Chevron reported earnings per share of $2.58; analysts had been expecting $2.85. For revenue, the company reported $60 billion versus analyst expectations of $71 billion. Production increased to 2.64 million barrels per day from 2.60 million barrels per day last quarter. The stock is down $2.31, or 2.17%, to $104.28 in afternoon trading.

The other Dow component to report earnings today, Procter & Gamble (NYSE: PG  ) , beat expectations but forecast lower-than-expected numbers for next quarter. The company reported earnings per share of $1.10, $0.02 above analyst expectations of $1.08. Revenue was $22.14 billion, just slightly below expectations of $22.2 billion. The company projected earnings per share for next quarter of just $0.81 to $0.87, below analyst expectations of $1.06. The company cited rising commodity costs and unfavorable currency movements. The stock is down $0.75, or 1.15%, to $64.05 in afternoon trading.

Foolish bottom line
Chevron’s earnings helped move the Dow today, but there are plenty of other companies out there that investors need to watch during this earnings season. In the Fool’s “Fourth-Quarter Earnings Report: 7 Stocks You’ll Want to Watch,” you’ll find information on this quarter’s possible big performers. It’s completely free for our readers, so click here to access your free report today

Today, the Dow (INDEX: ^DJI  ) was down 22 points (or 0.18%) to 12,734.63. The popular ETF that tracks the Dow, the SPDR Dow Jones Industrial Average (NYSE: DIA  ) , was down 0.15% to 127.06.

Of the 30 Dow components, 23 were down today. Four of them were down more than 1%.

The market as a whole reacted negatively to an unexpected new-home-sales decline for December. New-home sales fell 2.2% to a seasonally adjusted annual rate of 307,000. For 2011 as a whole, sales fell 302,000 — a 6.2% drop and the worst annual sales total on record.

Of course, if you’re looking for a housing bottom, this could be good news, as my fellow Fool Morgan Housel explains.

But the biggest daily loser, AT&T, had the most identifiable reason for being down. Its earnings report today disappointed folks just as Verizon’s did two days ago. Excluding charges, it reported earnings per share of $0.42, a penny off from analyst estimates. But including all one-time charges, it reported a loss of $6.68 billion, or $1.12 per share.

AT&T took a $4.2 billion charge from its failed bid for T-Mobile USA, but like Verizon, the longer-term problem for AT&T is its dependence on Apple. Even with efforts to diversify, some 80% of its smartphone sales were iPhones. Remember that these are extremely subsidized by the carriers to lock in customer contracts. And now that the iPhone isn’t exclusive to AT&T, the subsidies go from differentiator to table stakes.

There you have it — a bad day for AT&T and, more importantly, a sign of potential long-term trouble ahead if it can’t solve the margin sucking sound coming from Apple. If you want to read more about Apple and the companies that are capitalizing on the mobile boom, read our brand new free report: “The Next Trillion Dollar Revolution.”

The Dow Jones Industrial Average (INDEX: ^DJI  ) is rising for the second day in a row as the U.S. Commerce Department reported orders for durable goods rose 3% in December. Also, three Dow components reported earnings. At 10 a.m. EST, the Dow was up 75 points to 12,831.

Caterpillar (NYSE: CAT  ) reported strong earnings this morning. Earnings per share were up 60% to $2.32, above analyst expectations of $1.73 per share. Revenue was $17.24 billion, above analyst expectations of $16.05 billion. In early trading, Caterpillar is up 3.5%.

3M (NYSE: MMM  ) also reported earnings before the market opened, with earnings up 5% to $1.35 per share, just above expectations of $1.31 per share. This was above analysts’ expectations of $0.33 per share; revenue was $7.1, which met expectations. In early trading, 3M is up 0.9%.

AT&T (NYSE: T  ) reported a $6.7 billion loss, or $1.12 per share. Analysts expected earnings per share of $0.42. Earnings were hit by the breakup fee with T-Mobile, iPhone subsidy expenses, asset impairments, and an actuarial loss on benefit plans. Revenue was $32.5 billion, slightly above analyst expectations of $32 billion. The stock is down 2.1% in early trading.

The best approach
Watching the broad market each day is exciting, gut-wrenching, and stressful, but investing doesn’t have to be. If you’re in the mood to pick up a great company to buy for the long term, check out The Motley Fool’s brand-new free report: “The Motley Fool’s Top Stock for 2012.” It features a company hand-selected by the Fool’s chief investment officer that has a strong future ahead of it. Get access to the report and find out the name of this legendary company. The report is free but won’t be available forever, so check it out today.

Yesterday was a pretty good day for the market. After a slow start, all three indexes ended the day up. The Dow Jones Industrial Average (INDEX: ^DJI  ) was up 0.66% to 12,758.85, the Nasdaq (INDEX: ^IXIC  ) was up 1.14% to 2,818.31, and the S&P 500 (INDEX: ^GSPC  ) was up 0.87% to 1,326.06.

What drove the market yesterday was Apple‘s fantastic earnings and the Federal Reserve’s report of its intention to continue near-zero short-term interest rates into late 2014 (extended from mid-2013).