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Stocks slip on mixed earnings, rising dollar
Source: Agencies |
October 27, 2010, Wednesday
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DISAPPOINTING earnings, a drop in home prices and a stronger dollar sent stocks slightly lower yesterday.
Investors were concerned with what they were hearing in earnings news from Texas Instruments Inc., U.S. Steel Corp. and Bristol-Myers Squibb Co. Disappointing news from European companies like banking giant UBS, wind turbine maker Vestas and steel maker ArcelorMittal drove stocks lower overseas.
The Dow Jones industrial average fell nearly 30 points in morning trading. Stocks pared their losses after the Conference Board's consumer confidence index for October beat expectations.
The weak batch of earnings contrasts what's been seen in recent days. Stocks have received a lift recently from upbeat results and outlooks from companies across most industries. But yesterday's earnings gave investors a moment to pause. Ford Motor Co. and Coach Inc. were among the few bright spots.
The drugmaker Bristol-Myers Squibb reported a better-than-expected profit, but revenue fell short of forecasts. Sales were hurt by the health care overhaul bill passed earlier this year.
U.S. Steel surprised analysts by reporting a quarterly loss, while chipmaker Texas Instruments said it expects sales to moderate during the fourth quarter because of low consumer demand.
Traders were also moving out of riskier assets as the dollar strengthened. A stronger dollar makes stocks, gold and oil more expensive because they are priced in dollars. The dollar rose against Japan's yen and the euro yesterday. Gold and oil prices both fell slightly.
Home prices slid in August, renewing concerns about the health of the housing market. The Standard & Poor's/Case-Shiller home price index fell 0.2 percent in August. Fifteen of the 20 cities measured in the index saw price declines. The housing market remains very weak and any last lift sales and prices got from a now-expired tax credit appear to be gone.
The Dow fell 28.38, or 0.3 percent, to 11,135.67 in morning trading.
The Dow had been hovering near its highest trading levels of the year over the past few days, but has been unable to maintain upward momentum. Twice in the past three days the Dow has briefly traded above its highest closing level of the year, only to pull back before the end of the day.
The Standard & Poor's 500 index fell 3.02, or 0.3 percent, to 1,182.60, while the Nasdaq composite index fell 6.44, or 0.3 percent, to 2,484.41.
Gold fell US$8.20 to US$1,330.70 an ounce. Benchmark crude oil fell 28 cents to US$82.24 a barrel on the New York Mercantile Exchange.
Bond prices fell slightly. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.61 percent from 2.56 percent late Monday.
Shares of Bristol-Myers Squibb fell 19 cents to US$26.97, while Texas Instruments dropped 47 cents to US$28.51. U.S. Steel tumbled US$1.81, or 4.3 percent, to US$40.47.
UBS shares trading in the U.S. slid 90 cents, or 5 percent, to US$17.02.
Ford rose 5 cents to US$14.02 after it beat expectations and announced plans to accelerate debt repayments. Coach jumped US$3.96, or 8.9 percent, to US$48.44 after its results indicated affluent shoppers are returning to stores.
Investors were concerned with what they were hearing in earnings news from Texas Instruments Inc., U.S. Steel Corp. and Bristol-Myers Squibb Co. Disappointing news from European companies like banking giant UBS, wind turbine maker Vestas and steel maker ArcelorMittal drove stocks lower overseas.
The Dow Jones industrial average fell nearly 30 points in morning trading. Stocks pared their losses after the Conference Board's consumer confidence index for October beat expectations.
The weak batch of earnings contrasts what's been seen in recent days. Stocks have received a lift recently from upbeat results and outlooks from companies across most industries. But yesterday's earnings gave investors a moment to pause. Ford Motor Co. and Coach Inc. were among the few bright spots.
The drugmaker Bristol-Myers Squibb reported a better-than-expected profit, but revenue fell short of forecasts. Sales were hurt by the health care overhaul bill passed earlier this year.
U.S. Steel surprised analysts by reporting a quarterly loss, while chipmaker Texas Instruments said it expects sales to moderate during the fourth quarter because of low consumer demand.
Traders were also moving out of riskier assets as the dollar strengthened. A stronger dollar makes stocks, gold and oil more expensive because they are priced in dollars. The dollar rose against Japan's yen and the euro yesterday. Gold and oil prices both fell slightly.
Home prices slid in August, renewing concerns about the health of the housing market. The Standard & Poor's/Case-Shiller home price index fell 0.2 percent in August. Fifteen of the 20 cities measured in the index saw price declines. The housing market remains very weak and any last lift sales and prices got from a now-expired tax credit appear to be gone.
The Dow fell 28.38, or 0.3 percent, to 11,135.67 in morning trading.
The Dow had been hovering near its highest trading levels of the year over the past few days, but has been unable to maintain upward momentum. Twice in the past three days the Dow has briefly traded above its highest closing level of the year, only to pull back before the end of the day.
The Standard & Poor's 500 index fell 3.02, or 0.3 percent, to 1,182.60, while the Nasdaq composite index fell 6.44, or 0.3 percent, to 2,484.41.
Gold fell US$8.20 to US$1,330.70 an ounce. Benchmark crude oil fell 28 cents to US$82.24 a barrel on the New York Mercantile Exchange.
Bond prices fell slightly. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.61 percent from 2.56 percent late Monday.
Shares of Bristol-Myers Squibb fell 19 cents to US$26.97, while Texas Instruments dropped 47 cents to US$28.51. U.S. Steel tumbled US$1.81, or 4.3 percent, to US$40.47.
UBS shares trading in the U.S. slid 90 cents, or 5 percent, to US$17.02.
Ford rose 5 cents to US$14.02 after it beat expectations and announced plans to accelerate debt repayments. Coach jumped US$3.96, or 8.9 percent, to US$48.44 after its results indicated affluent shoppers are returning to stores.
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