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Overnight Markets: Wall Street little changed on lacklustre earnings
by Himanshu Singh on Oct 22, 2013 at 04:29
Wall Street closed little changed on Monday as weak earnings reports from McDonald's and others fuelled concerns that equities were overpriced.
The Dow Jones industrial average was down eight points, or 0.05%, at 15,392. The Standard & Poor's 500 Index ended flat at 1,745. The Nasdaq Composite Index was up six points, or 0.15%, at 3,920.
The Dow declined after McDonald's Corp (MCD.N) fell 0.6% following a weak fourth-quarter outlook and warned global October sales could be relatively flat. Apple Inc (AAPL.O) boosted the S&P 500 and Nasdaq after Societe Generale lifted its price target on the stock to $575 from $500 and advised clients to buy shares. The stock rose 2.4%.
Investors also showed a reluctance to make aggressive bets ahead of Tuesday's release of US payrolls data for September, which was delayed by the recent government shutdown.
In company news, Netflix (NFLX.O) jumped 11% in after-hours trading on the release of its earnings report that said the company added 1.3 million US streaming customers in September
Texas Instruments Inc (TXN.O) gained 0.3% after the company's earnings beat estimates. General Electric Co. gained 2.3% to the highest level since 2008.
Hasbro Inc (HAS.O) jumped 5.2% to a new high as both earnings and sales topped expectations.
Solar power companies were among the strongest on Monday, with First Solar Inc (FSLR.O) up 7.8% as the S&P's top percentage gainer. Trina Solar (TSL.N) rose 2.7%.
JP Morgan Chase & Co (JPM.N) fell 0.1% after the bank reached a tentative $13 billion deal with the US government to settle investigations into bad mortgage loans sold to investors.
Homebuilders slumped amid a report showing existing-home sales declined for the first time in three months. Halliburton Co. dropped 3.5% as revenue fell short of forecasts. D.R. Horton Inc. fell 1.8%, while PulteGroup Inc. lost 1.2%.
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