We had mixed reports on the earnings front today, with Halliburton coming ahead and McDonald’s ‘only’ coming in-line with expectations. We don’t have any major economic reports due today, though an otherwise little-known report appeared to show an upbeat outlook for the labor market.
Halliburton beat on EPS as well as revenue, just as Schlumberger had done the week before. Halliburton has been a key beneficiary of the ramped up drilling for shale natural gas in the U.S. McDonald’s EPS and revenue numbers came in-line with expectations. The fast food giant had same-store sales gains of 5% in the fourth quarter. Other major earnings reports coming out today include American Express and Texas Instruments; both companies report after the close.
On the economic front, we have a positive report on the outlook for the labor market. According to the quarterly survey from the National Association of Business Economics (NABE), more companies are planning to hire new employees in the coming six months. This would be in-line with other major economic indicators, including the weekly Jobless Claims data and the employment components of the monthly ISM Indexes.
A key report on the economic calendar this week will be the fourth-quarter GDP report on Friday, which is expected to show a significant acceleration from the prior-quarter’s pace. I think the GDP report is more signficant than the Fed meeting.
Sheraz Mian
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