Reuters

(Reuters)

What to Watch in the Markets

Markets

  • 1. McDonald's

    The world’s biggest burger chain posted much better than expected fourth-quarter earnings results. The company revealed earnings per share of $1.31 on revenue of $6.34 billion. Expectations called for profits of $1.23 a share on sales of $6.22 billion. Meanwhile, global same-store sales for the reporting period jumped 5%, with U.S. comp sales surging 5.7% thanks to the launch of all-day breakfast in October, and mild weather, the company said.

    "We took bold, urgent action in 2015 to reset the business and position McDonald's to deliver sustained profitable growth," said McDonald's President and CEO Steve Easterbrook said in a statement. "We ended the year with momentum… a testament to the swift changes we made and the early impact of our turnaround efforts.”

    Shares rose more than 3% in pre-market trading. 

  • 2. Halliburton

    The world’s second-largest oilfield service provider reported better-than-expected quarterly profits of 31 cents a share, compared to 24-cent expectations. Total revenue, meanwhile, dropped 42% thanks to multi-year low oil prices and weak drilling activity.

    Shares of the company slumped 2.27% in pre-market trading.

    Halliburton’s CEO said the company continues to await regulatory approval for it’s proposed merger with Baker Hughes (BHI). 

  • 3. Caterpillar

    Shares of Caterpillar dropped 3.7% ahead of the opening bell after Goldman Sachs cut its rating to sell from neutral, and downgrading its price target to $51 from $67. The downgrade came as the analyst expects “sustained lower returns” thanks to overcapacity and lower demand from commodity-exporting nations including China. 

  • 4. Tyco International

    Merger Monday came thanks to Johnson Controls and Tyco International’s announcement of a proposed tie up. The deal would result in a combined company domiciled in Ireland – a low-tax haven – where Tyco is currently headquartered. The companies said the deal would result in at least $500 million in savings within the first three years, with $150 million in annual tax savings.

    Tyco is a maker of fire protection and security systems, while Johnson Controls manufactures car batteries and heating and ventilation equipment. 

  • 5. Twitter

    Merger Monday came thanks to Johnson Controls and Tyco International’s announcement of a proposed tie up. The deal would result in a combined company domiciled in Ireland – a low-tax haven – where Tyco is currently headquartered. The companies said the deal would result in at least $500 million in savings within the first three years, with $150 million in annual tax savings.

    Tyco is a maker of fire protection and security systems, while Johnson Controls manufactures car batteries and heating and ventilation equipment. 

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