The Joplin Globe, Joplin, MO

Business

January 28, 2013

US stocks edge up after strong Caterpillar earns

NEW YORK — U.S. stocks fell Monday morning, backing off a rally that had pushed the Standard & Poor’s 500 index above 1,500 for the first time since December 2007. The modest decline occurred despite of encouraging signs about the manufacturing sector, a key driver of economic growth.

The government said before trading began that orders for long-lasting goods rose in December by 4.6 percent, helped by a 10 percent gain in orders for new aircraft.

Heavy equipment maker Caterpillar said separately that its fourth-quarter net income exceeded analysts’ expectations, after adjusting for the cost of a soured deal to buy a Chinese maker of roofing supports for mines. Caterpillar said it took a big charge in the quarter because the Chinese company had misrepresented its finances.

Caterpillar Inc. said it expects growth in China to improve without regaining the levels seen in 2010 or 2011. The stock was the biggest gainer in the Dow Jones industrial average, rising $1.21, or 1.3 percent, to $96.79 as of 10:15 a.m. Eastern time.

Stocks opened mixed after Caterpillar’s announcement and the factory orders data, but turned negative in the first half-hour of trading. Declining stocks outnumbered rising stocks by more than two to one on the New York Stock Exchange.

The Dow fell 25 points to 13,870. The S&P 500 dropped six to 1,497. The Nasdaq composite average declined three to 3,146.

Among companies in the S&P 500 that reported earnings Monday, Biogen Idec Inc. said its fourth-quarter net income slipped nearly 3 percent because of a tax charge and higher expenses. Still, the biotech drug maker was one of the top gainers in the S&P 500, rising $4.40, or 3 percent, to $150.60.

Roper Industries Inc., which makes medical and industrial equipment, said its fourth-quarter net income rose 18 percent. But the company issued mixed guidance for the current quarter and full year 2013. It rose 9 cents to $118.92.

Strong corporate earnings have pushed stocks higher in the past two weeks after several calm, relatively news-free weeks. On Friday, the S&P 500 closed above 1,500 for the first time since December 2007, the official start of the worst economic downturn since the 1930s.

In addition to strong earnings, traders have been encouraged by signals that housing market is improving steadily and hiring is picking up, albeit slowly.

There will plenty of fresh data to drive trading this week, including retail sales, economic growth and the government’s report on hiring and employment in January, which is due out Friday. More than one-fifth of the companies in the S&P 500 will report fourth-quarter earnings this week.

The yield in the benchmark 10-year Treasury note rose to 1.98 percent from 1.95 percent late Friday, reflecting lower demand for ultra-safe investments. After Monday’s factory orders report, the yield rose briefly above 2 percent for the first time since April. A bond’s yield rises as demand for it decreases.

 

1
Text Only
Business
  • Business Stocks edge higher amid earnings and deals

    Stock futures edged higher as more companies reported first quarter earnings.

    April 22, 2014 1 Photo

  • McDonald’s profit slips amid weak sales

    McDonald’s is fighting to hold onto customers in the U.S.

    April 22, 2014

  • Novartis reshapes business with GSK, Lilly deals

    Swiss pharmaceutical firm Novartis AG launched a major overhaul of its business Tuesday, unveiling a series of multibillion-dollar deals with Britain’s GlaxoSmithKline PLC and the U.S.’s Eli Lilly & Co. that heralds more restructuring in the fast-changing industry.

    April 22, 2014

  • Valeant, Ackman make $45.6B Allergan bid

    Valeant Pharmaceuticals and activist investor Bill Ackman have unveiled details of their offer to buy Botox maker Allergan, proposing a cash-and-stock deal that could be worth about $45.6 billion.

    April 22, 2014

  • Comcast 1Q earns surge on upbeat NBC results

    Comcast Corp. said Tuesday that its first-quarter net income rose by 30 percent as ad revenue surged at broadcast network NBC, helped by the Winter Olympics in Sochi and Jimmy Fallon’s elevation as host of “The Tonight Show.”

    April 22, 2014

  • Feds seek $211K in fines from Minn. company

    Federal safety regulators are proposing $211,000 in fines for a Minnesota agriculture company that authorities say repeatedly failed to make sure workers weren’t exposed grain dust hazards in Montana.

    April 23, 2014

  • Advocates vow to revive Navajo junk-food tax

    Facing a high prevalence of diabetes, many American Indian tribes are returning to their roots with community and home gardens, cooking classes that incorporate traditional foods, and running programs to encourage healthy lifestyles.

    April 23, 2014

  • Business US stocks edge lower after a six-day rally

    The stock market slipped Wednesday after rallying for six straight days as investors worked through another round of quarterly earnings reports from U.S. companies.

    April 23, 2014 1 Photo

  • GM, lawyers fight over bankruptcy protections

    General Motors Co. and a battalion of trial lawyers are preparing for an epic court fight over whether GM is liable for the sins of its corporate past.

    April 22, 2014

  • AT&T explores expansion of super-fast Internet

    AT&T plans a major expansion of super-fast Internet services to cover as many as 100 municipalities in 25 metropolitan areas.

    April 21, 2014

Poll

Missouri Gov. Jay Nixon said Tuesday that a tax cut approved by the Legislature could have a “cataclysmic” effect on state revenues to the tune of $4.8 billion. House Majority Leader John Diehl calls that “absurd.” Who do you believe?

A. Nixon
B. Diehl
     View Results
Facebook
Twitter Updates
Follow us on twitter
NDN Video
U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' Obama to Oso: We'll Be Here As Long As It Takes Bon Jovi Helps Open Low-income Housing in Philly S.C. Man Apologizes for Naked Walk in Wal-Mart New Country Music Hall of Fame Inductees Named 'Piles' of Bodies in South Sudan Slaughter SCOTUS Hears Tv-over-Internet Case Chief Mate: Crew Told to Escape After Passengers