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What to Watch: July 23, 2012

Financial News Network
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July 25, 2012 AT 2:51 AM
From Fnno.com, this is the Financial News Network, your source for the latest business news. Here's a few things to watch for in the financial world today July 23.McDonald's (NYSE:MCD) announced a rare miss on earnings this morning. The fast food company posted an EPS of $1.32, less than the average analyst estimate of $1.38. Revenue rose less than 1 percent to $6.92 billion which was also below estimates of $6.96 billion. This constitutes a 4.5% drop in profit for the second quarter, with sales only rising 3.6%, the slowest in five quarters. Investors are not happy about this. The fast-food chain's stock is down almost 3% in early trading.Another company to report its earnings is Eaton Corporation (NYSE:ETN). The power management company posted an EPS of $1.12, higher than analyst expectations of $1.09. Revenue for the quarter was slightly lower at $4.1 billion, which missed analyst expectations of $4.24 billion. But this is great news for Eaton with profit rising 15% from the previous quarter. Investors are seeing this too. The company's shares are up over 3% on this news.And finally, some personnel moves at clothing retailer Wet Seal (NASDAQ:WTSLA). Chief Executive Officer of the company Susan McGalla has been fired due to sales declines. She signed on at CEO in January 2011 and was supposed to be at the company until August of 2014. However, due to declining sales in the teen retail sector the company had to cut its outlook for the quarter ending in July. This led to the firing of McGalla without even finding her a replacement. It will be interesting to see who Wet Seal gets to replace her and if they can turn around their declining sales. On this news, the company's stock is down over 15%.Those were a few things to watch out for here on the Financial News Network. For more coverage and analysis of the business world follow us on twitter @FNNOnline or check out website at fnno.com.