It was a week when investors managed to look past good news to embrace the dark side, deciding that the bull market on Wall Street is showing signs of age.
In particular, they developed a case of the shakes on rumors that large hedge funds might face an impossible squeeze tied to their holdings of debt in troubled General Motors Corp.
Locally, the list of winners was topped by McDonald’s Corp., which told shareholders it plans to add at least 100 stores a year in China, including its first drive-through location.
The Oak Brook-based fast-food giant said domestic sales grew for the 25th month in a row.
“Growth is still there, but they’re having to work hard to top last year’s success,” said one analyst, describing the recent sales spurt as coming from “a very low base.”
McDonald’s finished the week at $29.65, 18 percent above its 52-week low of $25.05.
Still on the ascent was Boeing Co. Analysts said spring is a traditional period for its stock to climb, ahead of the Paris Air Show in June.
The Chicago-based aeronautics giant saw two big new orders, one for $3 billion from China Southern Airlines Co. and one for $880 million from SkyEurope Airlines.
Boeing stock finished the week at $59.50, 41 percent above its 52-week low of $42.29. It was a rough few days for industrial stocks, but one local standout, Illinois Tool Works Inc., largely held its own. The Glenview-based maker of Hobart welding gear and Duo-Fast nail guns, said Chief Financial Officer Jon C. Kinney will retire Aug. 6.
However, ITW finished the week at $82.08, a new 52-week low, down about 15 percent from a 52-week high of $96.70.
Kraft sees profits rising
Kraft Foods Inc. saw its shares continue to drift, even though it told Wall Street analysts its profit should rise in 2006.
Earnings will be boosted by revenue from a South Beach Diet line of snacks and meals, and higher prices for Maxwell House coffee, Chief Executive Roger Deromedi said.
Investors offered a lukewarm response, and shares finished the week at $32.48, down about 10 percent from their 52-week high of $36.06.
Also on the downside, Sears Holdings Corp. failed to move investors with its plans to shed the Orchard Supply Hardware chain in California.
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Sears shares declined to $137.13 and are 8 percent below their recent peak of $149.50.
Finally, shares of Tribune Co. fell as investors took note of revenue shortfalls and circulation declines at its flagship Chicago newspaper and sister publication Los Angeles Times.
Tribune stock finished at $36.97, more than 24 percent below its 52-week high of $48.97.
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