Disappointing earnings reports cast pall on stock market
NEW YORK — Investors weren't impressed with the earnings news from big American companies on Friday.
General Electric slumped 62 cents, or 2.3 percent, to $26.58. Profit margins in the company's industrial unit fell short of its own targets.
Intel dropped 69 cents, or 2.6 percent, to $25.85. Its first-quarter revenue forecast for $12.8 billion, “plus or minus” $500 million, was less than analysts expected.
Capital One also fell, as the bank missed earnings expectations.
The Standard & Poor's 500 index slipped 7.19 points, or 0.4 percent, to 1,838.70. The Dow Jones industrial average rose 41.55 points, or 0.3 percent, to 16,458.56. The Nasdaq composite fell 21.11 points, or 0.5 percent, to 4,197.58.
The S&P 500 index retreated from a record-high close on Wednesday. It ended the week 0.5 percent lower and continued its lackluster start to January.
Still, many investors aren't ready to give up on the stock market's latest rally, which capped an exceptionally strong 2013 with a gain of almost 10 percent in the final three months of the year.
“Markets don't go straight up to the moon,” said Doug Cote, chief market strategist at ING Investment Management. “This flat-lining is the market regrouping ... it's a healthy pause.”
The earnings news on Friday wasn't all bad.
American Express rose $3.19, or 3.6 percent, to $90.97 after the company said late Thursday that its net income more than doubled in the fourth quarter. Amex cardholders boosted their spending and borrowing during the holiday season. The news also lifted Visa, which climbed $10.41, or 4.7 percent, to $232.18.
The two companies are members of the Dow and together boosted the blue-chip index by 87 points. Without them, the Dow would have ended the day down.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Consumer, core prices inch up
- Highmark seeks double-digit increase for more benefits, heavy use
- Air-bag deaths draw scrutiny of Congress as recalls widen
- SEC approves looser mortgage lending guidelines
- FedEx investing another $1.2B in growth projects at FedEx Ground in Moon
- Natrona Bottling Co. keeps soda pop operation focused on craft, taste
- Calgon Carbon poised for explosive growth
- Amid struggles, top fiscal executive to leave EDMC
- Rural communities can’t shake effects of subprime crisis
- Nervous investors crunch stocks
- Large-scale batteries are integral in shift to renewable energy