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Overnight Markets: Wall Street down on earnings forecasts
by Himanshu Singh on Oct 24, 2013 at 05:08
Wall Street declined on Wednesday, ending the S&P 500's four-session streak of record high finishes, as shares of heavy-equipment maker Caterpillar and semiconductor companies tumbled after they reported earnings.
The Dow Jones industrial average was down 54 points, or 0.35%, at 15,413. The Standard & Poor's 500 Index was down eight points, or 0.47%, at 1,746. The Nasdaq Composite Index was down 22 points, or 0.57%, at 3,907.
Investors worried after results from Caterpillar Inc (CAT.N) and Boeing Co (BA.N) illustrated the quarter's mixed picture of corporate results and outlooks.
Caterpillar was one of the biggest decliners on the S&P, slumping 6.2% after the manufacturer cut its full-year outlook for a third time and its profit missed expectations.
On the upside, Boeing surged 5.3% after airplane maker reported a rise in adjusted profit and raising its full-year forecast.
After the market closed, both AT&T (T.N) and TripAdvisor (TRIP.O) reported revenue that was slightly below Wall Street's estimates. TripAdvisor shares in extended-hours trading were up 5%, while AT&T shares were flat.
In the semiconductor sector, Broadcom (BRCM.O), Altera (ALTR.O) and RF Micro Devices (RFMD.O) joined Intel (INTC.O) and Texas Instruments (TXN.O) in lowering their forecasts. Broadcom fell 2.9%, Altera lost 13.5% and RF Micro lost 8.6%.
Netflix (NFLX.O) shares were up 2.4% following a large selloff on Tuesday when billionaire investor Carl Icahn cut his stake in the company.
Corning Inc. jumped 14% after approving a $2 billion buyback and agreeing to purchase full ownership of a Samsung Electronics Co. joint venture.
Commodity shares slid with gold and copper prices as China’s money-market rates jumped the most since July. Cliffs Natural Resources Inc. fell 2.9% while Newmont Mining Corp. lost 4.1%.
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