U.S. Indexes Back Off from 4-Year Highs on Earnings Worries

Nichole Harper
23 Oct, 2013
New York City

Stocks on Wall Street took a breather after market indexes flirted with four-year highs. In the last thirteen years, U.S. market indexes have advanced more than 20% only two times. S&P 500 index in the year so far has jumped 22% following 14% rise in 2012.

[R]2:25 PM New York – Stocks on Wall Street took a breather after market indexes flirted with four-year highs. In the last thirteen years, U.S. market indexes have advanced more than 20% only two times. S&P 500 index in the year so far has jumped 22% following 14% rise in 2012.[/R]

On Wall Street stocks edged lower after market indexes flirted with four-year high and registered yearly gains that inched closer to the best advances of the decade.

S&P 500 index declined 0.5% to 1,745.38 and the Nasdaq Composite Index fell 0.7% to 3,901.31.

In London trading, FTSE 100 index slipped 0.3% or 22.2 to 6,674 and in Frankfurt the DAX index fell 0.3% or 27.6 to 8,920.

In Paris, CAC 40 index dropped 0.8% or 34.80 to 4,261.

In Asian trading, market indexes China, India and Japan declined after the yen advanced 0.8%. The Nikkei index plunged 2%.

Chinese banks were in focus after the largest bank reported tripling of bad loans ratio as loans issued surged in the first-half.

U.S. Stocks in Review

Apollo Group Inc ((APOL)) soared 24% to $26 after the largest U.S. for-profit education institution reported adjusted fourth-quarter profit of 55 cents a share, higher than 22 cents a share estimated by analysts.

Broadcom ((BRCM)) declined 7% to $25.21 and reported revenues of $1.92 billion, lower than $2 billion estimated by analysts. The company also said it plans to cut 1,150 jobs in the current quarter.

Boeing ((BA)) increased 5% to $129.03 after the aerospace company and defense contractor reported rising revenues and earnings and free cash flows. Revenues increased 11% and net income rose 12% in the quarter.

Caterpillar Inc ((CAT)) dropped 6% to $83.55 after the mining and farm equipment maker

Corning Inc ((GLW)), the maker of advanced glass products soared 11% to $17.04 and the third quarter earnings rose 24% and sales increased 5%.

Cree Inc ((CREE)) dropped 16% to $62 after the energy-efficient lighting products maker reported lower than expected earnings.

Juniper Networks Inc ((JNPR)) declined 4% to $19.34 after the second largest networking equipment maker reported lower than expected revenues.

Norfolk Southern Corp ((NSC)) gained 5% to $84.22 after the second-largest railroad operator based in the U.S. reported third-quarter earnings ahead of expectations on rising shipment of steel and fracking sand used in shale gas exploration.