Mid-Day Update: Stocks Falling After Mixed Earnings, Chinese Inflation Data Spooks Markets
Mixed corporate earnings and worries that China may need to combat rising inflation with higher interest rates has the U.S. markets reversing course after yesterday climbing to record highs. Reduced guidance from Catepillar ( CAT ) and Broadcom ( BRCM ) is overshadowing better-than-expected earnings from Dow component Boeing ( BA ), with the aircraft manufacturer appearing to overcome safety concerns over the lithium-ion batteries in its Dreamliner 787 jetliners to post a 16% year over year gain in earnings and lifting its stock price to a new record high.
Economic data today painted a mixed picture of the U.S. economy. September import prices rose an as-expected 0.2% but export prices jumped 0.3% following a 0.5% contraction in August, beating consensus estimates for a 0.1% decline.
The impact higher borrowing costs is having on the housing market was again evident by a modest 0.3% increase in the Federal Home Finance Agency housing price index for August, following a more robust 1.0% gain in July and below estimates for a 0.8% increase.
In Europe, equity markets broke a 9 day winning streak after disappointing earnings from Heineken and chip makers renewed concerns about stalling economic growth across the continent. Banking stocks, especially in Spain and Italy, were also responsible for the softer tone as the ECB stress tests is expected to shed a negative light on most European banks.
Crude oil was down $1.67 to $96.63 per barrel. Natural gas was up $0.03 to $3.83 per 1 million BTU. Gold was down $8.90 to $1,337.80 an ounce, while silver was down $0.12 to $22.67 an ounce. Copper was down $0.06 to $3.28 per pound.
Among energy ETFs, the United States Oil Fund was down 1.54% to $34.85 with the United States Natural Gas Fund was up 0.81% to $18.58. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was down 0.23% to 25.96 while SPDR Gold Shares were down 0.26% to $129.00. The iShares Silver Trust was down 0.09% to $21.85.
Here's where the markets stand at mid-day:
NYSE Composite Index down 70.33 (-0.70%) to 9,986.27
Dow Jones Industrial Average down 86.54 (-0.56%) to 15,381.12
S&P 500 down 11.58 (-0.66%) to 1,743.09
Nasdaq Composite Index down 33.45 (-0.85%) to 3,896.11
Nikkei 225 Index down 1.95%
Hang Seng Index down 1.36%
Shanghai China Composite Index down 1.25%
FTSE 100 Index down 0.32%
CAC 40 down 0.81%
DAX down 0.31%
NYSE SECTOR INDICES
NYSE Energy Sector Index down 1.32%
NYSE Financial Sector Index down 0.96%
NYSE Healthcare Sector Index down 0.25%
(+) APOL, (+25.7%) Adjusted Q4 EPS of $0.55 for the for-profit educator beats the Capital IQ consensus by $0.30 per share.
(+) GLW, (+11.9%) Strikes deal to acquire the remaining stake of its Samsung Corning Precision Materials Co. joint venture from its partner Samsung.
(+) BA, (+4.3%) The aircraft manufacturer reports Q3 GAAP EPS of $1.80, up 16% over year-ago levels and easily topping forecasts expecting a $1.53 gain.
(-) SLGN (-5.5%) Q3 adjusted net income climbs to a record $1.23 but still missed analyst estimates by $0.11 per share.
(-) DTLK (-25.2%) Reports Q3 earnings of $0.13 per share, excluding one-time items, lagging the Street view by $0.10 per share.
(-) RPRX (-30.5%) Discloses it had received FDA guidance for its clinical program for Androxal, a potential treatment for low testosterone in men.