What to watch
Seven Dow companies set to report earnings
The Dow Jones industrial average’s next move could hinge on how earnings stack up when seven members of the blue chip stock gauge report quarterly profits Tuesday.
After falling 78 points Monday, the Dow gets a slew of marketmoving earnings reports before Tuesday’s opening bell when six components report. Heavyequipment maker Caterpillar, burger giant McDonald’s, mobile player Verizon, as well as Dupont, 3M and United Technologies all release results early Tuesday. iPhone maker Apple reports after the closing bell.
Last week the Dow climbed to record highs before pulling back two of the past three sessions. Whether the Dow can top its alltime record close of 18,595.03 on July 20 could hinge on Tuesday’s profit results.
The only two Dow stocks reporting that are forecast to grow earnings from the same quarter a year ago are McDonald’s, which has benefited from a move to allday breakfast, and Dupont, according to earnings-tracker Thomson Reuters.
Apple, which has been hurt by slowing iPhone sales, is expected to earn $1.38 per share, down more than 25% from a year ago. Similarly, earnings for Caterpillar, which have been held back by a strong dollar and a slowing global economy, are expected to contract by more than 24%. Verizon’s earnings will likely be overshadowed by Monday’s big news, when it announced that it was acquiring Yahoo’s core Internet assets for $4.8 billion.