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Overnight Markets: US stocks decline on weak outlook from UPS

Overnight Markets: US stocks decline on weak outlook from UPS

US stocks declined on Tuesday as a weak outlook from courier company UPS weighed on sentiment and pressured transportation stocks.

The Dow Jones industrial average was down 70 points, or 0.41%, to 16,912, the S&P 500 lost nine points, or 0.45%, to 1,970, and the Nasdaq Composite fell two points, or 0.05%, to 4,443.

United Parcel Service (UPS.N) shares fell 3.7% after the world's biggest courier company slashed its earnings forecast for the year due to spending to boost capacity. It also reported second-quarter earnings that were below expectations. Rival shipping company FedEx Corp (FDX.N) was down 1.6%.

In economic data, US consumer confidence jumped in July to a high not seen since October 2007, but single-family home prices fell 0.3% in May on a seasonally adjusted basis, falling short of expectations.

President Barack Obama said the US was imposing new sanctions on Russia in the energy, arms and finance sectors, following similar moves by the European Union in reaction to Moscow's support for rebels in eastern Ukraine.

Telecom stocks were the only sector of the market to rise yesterday, adding 2.2% after Windstream Holdings (WIN.O) filed to spin off assets into a tax-efficient publicly traded real estate investment trust. The stock jumped 12.3% in its busiest trading day on record. Frontier Communications (FTR.O) added 14.3%.

After the market closed, Twitter Inc (TWTR.N) jumped 14.5% in extended trading after the social networking company reported second-quarter results, which included revenue that more than doubled.

Dow component American Express Co (AXP.N) also reported after the market closed; its shares were little changed after the bell.

Dow components Pfizer (PFE.N) and Merck (MRK.N), the No. 1 and No. 2 US drug companies, respectively, reported better-than-expected results. Merck rose 1.1%, while Pfizer shed 1.2%.

Corning Inc (GLW.N) dropped 9.3% after reporting earnings that came in below estimates as demand fell for its Gorilla Glass, which is used in iPhones and Galaxy devices.

In Asia, shares gained on Wednesday in morning session as the US and European Union strengthened sanctions against Russia.

The MSCI Asia Pacific Index added 0.3% to 150 as of 9:53 a.m. in Hong Kong. South Korea’s Kospi index advanced 0.7%. Japan’s Topix index swung between gains and losses.

Hong Kong’s Hang Seng Index climbed 0.6%, while China’s Shanghai Composite Index added 0.2%. Taiwan’s Taiex gained 0.3%. Australia’s S&P/ASX 200 Index advanced 0.6%. New Zealand’s NZX 50 Index and Singapore’s Straits Times were little changed.

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