US Stocks Decline Friday

Coca-Cola advances on future growth

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Oct 18, 2019
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U.S. stocks were in the red on Friday on the back of poor growth in China. The Dow Jones Industrial Average fell 0.95% to 26,770, the S&P 500 index declined 0.39% to 2,986 and the Nasdaq Composite Index slid 0.83% to 8,089.

Shares of The Coca-Cola Co. (KO, Financial) gained almost 2% on Friday after the company announced third-quarter results. The company posted earnings of 56 cents per share on $9.5 billion in revenue. It beat revenue expectations, but earnings were in line with estimates.

"Our performance gives us confidence that our strategies are taking hold with our consumers, customers and system," Chairman and CEO James Quincey said. "We are positioning the company to create a better shared future for all of our stakeholders by delivering on our vision and growing sustainably."

The operating margin was 26.3%, down from 29.8% in the prior-year quarter.Â

Looking ahead to full-year 2019, the company expects revenue growth of at least 5%, projecting the growth will be higher than expected. Further, it lowered its capital expenditure forecast to $2.2 billion.

During the quarter ended June 30, Mario Gabelli (Trades, Portfolio) reduced his position by 3% to 675,892 shares. Jim Simons (Trades, Portfolio) curbed his holding by 92% to 299,000 shares. Ken Fisher (Trades, Portfolio) boosted his position by 1.5% to 78,630 shares, while Ray Dalio (Trades, Portfolio) established a new holding, buying 123,409 shares.

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Global markets

The main European stock markets traded in the red. The U.K.'s FTSE 100 retreated 0.44%, France's CAC 40 declined 0.65%, Germany's Dax dipped 0.17% and Spain's IBEX 35 swelled 0.11%.

In Asia, Japan's Nikkei 225 gained 0.18%, India’s BSE Sensex rose 0.63%, Hong Kong's Hang Seng fell 0.48% and China's Shanghai Composite slid 1.32%.

Disclosure: The author holds no positions in any stocks mentioned.

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