Bad-Tasting McD's Earnings, but Fun Ones From Hasbro -- Plus, Russia and Housing-Market Pain
1. Stock winner of the week ...
So what helped out Hasbro? It turns out that, in fact, "boys drool and girls rule." That's because sales of toys focused on boys (we're talking about Nerf classics) rose by just 2% over the quarter -- but for girls, toys like My Little Pony jumped by 21%. Plus, international Hasbro sales gained 5% despite a slight sales slowdown in North America.
2. ... And stock loser
Ronald McDonald may always be smiling, but he wasn't for the first three months of 2014 -- he was shivering. According to the company's earnings report, the brutal winter weather that hurt much of the U.S. economy also had an affect on its consumers, who were apparently just too cold to wait in drive-through lines nationwide. That explains their 1.7% drop in same-store sales over the quarter,
There was a silver, good-tasting lining, though, from the McDonald's news. The company continues to see impressive numbers outside the United States. International same-store sales have maintained their steady pace -- revenues in Europe gained 1.4%, while Asia's rose by 1%. Last fall, McDonald's failed new menu options didn't gain traction with Uncle Sam's constituents, but at least its classic menu options are still appealing to foreigners.
3. Fresh Ukraine/Russia worries rattled stocks
Fridays are supposed to be casual or just plain fun, but stocks wavered at the end of the week as geopolitical tensions between the West and Russia heated up. Over the past few days, Russia's been ordering new military exercises along Ukraine's border. Now U.S. Secretary of State John Kerry is warning bare-chested President Vladimir Putin to ease tensions, and the West's Group of Seven is meeting again to discuss new economic measures against Russia. Plus, Russian stocks have fallen for five straight days after S&P downgraded the country's credit rating. Ouch.
4. Housing data wasn't fun
Sales of existing homes dipped by 0.2% in March for their seventh contraction in eight months, while sales of new homes plummeted 14%. With the polar-vortex season behind us, economists had expected the improved housing market to see increased activity this spring. But as the Federal Reserve has scaled back its stimulus policies that kept interest rates low to encourage borrowing, the slight increase in interest rates this winter deterred many a mortgage-seeking homebuyer.
- Monday: Pending-home sales; first-quarter earnings reports: Buffalo Wild Wings, Caesars Entertainment, Denny's, Kate Spade
- Tuesday: Two-day Fed meeting begins; earnings reports: Coach, eBay, Merck
- Wednesday: U.S. GDP; earnings reports: Hyatt Hotels, MetLife, Yelp
- Thursday: Motor-vehicle sales; earnings reports: Expedia, ExxonMobil, MasterCard
- Friday: April jobs report; earnings reports: Chevron, CVS Caremark
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The article Bad-Tasting McD's Earnings, but Fun Ones From Hasbro -- Plus, Russia and Housing-Market Pain originally appeared on Fool.com.Jack Kramer and Nick Martell have no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway, eBay, and McDonald's and owns shares of Berkshire Hathaway, Coach, eBay, Hasbro, MasterCard, and McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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