Nasdaq pops back into positive territory early Friday

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McDonald’s stock rallies after Longbow upgrades on confidence in new CEO

Shares of McDonald’s Corp. rose 0.9% in premarket trading Friday, after Longbow Research analyst Alton Stump got back to being bullish on the fast-food giant, citing confidence in new-Chief Executive Chris Kempczinski. Stump raised his rating to buy, after downgrading the stock to neutral on May 1. He set his price target at $227, which is 17.6% above Thursday’s closing price of $193.08. “While we were of course disappointed to hear the news of former CEO Steve Easterbrook’s departure earlier this week, we believe McDonald’s is in good hands under new CEO Chris Kempczinski,” Stump wrote in a note to clients. “Since his promotion to president of McDonald’s USA in January 2017, Mr. Kempczinski has played an integral role alongside Mr. Easterbrook in overseeing an impressive domestic same-store sales recovery.” The stock has lost 11.4% over the past three months, while the SPDR Consumer Discretionary Select Sector ETF has gained 1.6% and the Dow Jones Industrial Average has advanced 4.9%.

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