Stocks were higher Thursday as investors took comfort in a dip in weekly jobless claims and looked past disappointing tech earnings.
TheStreet’s Katherine Ross and Jeff Marks discussed breaking news in the stock market. Marks spoke about how to trade Apple and McDonald’s after earnings and markets on Wednesday.
McDonald’s: Buy Or Sell?
McDonald’s (MCD) – Get Report on Thursday posted weaker-than-expected fourth-quarter earnings. The fast-food giant reported earnings of $1.38 billion, or $1.84 a share, down from $1.57 billion, or $2.08 a share, in the year-earlier quarter.
Marks said it is a steady business but it just doesn’t fit into the market right now. “I’m sure they’ll see some tailwinds related to increases in the stimulus.”
Apple: Buy Or Sell?
Tech giant Apple (AAPL) – Get Report posted better-than-expected fiscal-first-quarter earnings and revenue exceeded $100 billion on Wednesday after the bell. Despite that shares of the iPhone maker were down.
Marks said this was a record quarter for the company, it did well across every product category and region too, did exceptionally well in China. “I was surprised that the stock is down, it’s a great margins story as services revenue becomes a larger part of the company mix.”
Markets on Wednesday
Marks said investors should exercise caution and understand the risks before buying into heavily shorted stocks like GameStop (GME) – Get Report, AMC Entertainment (AMC) – Get Report and others. “They go higher, maybe, but they go lower over the long run. That’s the more logical scenario.”
“For the broader market, I’m encouraged by the fact that we’re not seeing a follow through to the nasty selloff yesterday.”
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