Mid-Morning Market Update: Markets Tumble; Caterpillar Profit Misses Estimates
Following the market opening Wednesday, the Dow traded down 0.57 percent to 15,378.93 while the NASDAQ tumbled 0.90 percent to 3,894.19. The S&P also fell, dropping 0.69 percent to 1,742.60.
Caterpillar's quarterly earnings fell to $946 million, or $1.45 per share, from $1.70 billion, or $2.54 per share, in the year-ago period. Its total sales declined to $13.42 billion from $16.45 billion. However, analysts were expecting earnings of $1.68 per share on revenue of $14.29 billion. Caterpillar now projects 2013 profit of $5.50 per share on sales of $55 billion.
Equities Trading UP
Apollo Group (NASDAQ: APOL) shot up 19.20 percent to $24.96 after the company reported better-than-expected fourth-quarter results.
Shares of Corning (NYSE: GLW) got a boost, shooting up 15.21 percent to $17.68 after the company announced its plans to acquire full ownership of Samsung Corning Precision Materials.
Equities Trading DOWN
Shares of Cree (NASDAQ: CREE) were down 19.06 percent to $60.15 after the company issued a downbeat earnings forecast for the fiscal fourth quarter. Needham downgraded Cree from Buy to Hold.
Broadcom (NASDAQ: BRCM) shares tumbled 7.92 percent to $24.99 after the company issued weak Q4 revenue forecast. RF Micro Devices (NASDAQ: RFMD) was down, falling 10.06 percent to $5.54 after the company issued downbeat current-quarter revenue outlook.
In commodity news, oil traded down 1.61 percent to $97.62, while gold traded down 0.63 percent to $1,334.20.
Silver traded down 0.50 percent Wednesday to $22.68, while copper fell 1.50 percent to $3.29.
European shares were lower today. The Spanish Ibex Index fell 1.66 percent, while Italy's FTSE MIB Index declined 1.42 percent. Meanwhile, the German DAX dropped 0.24 percent and the French CAC 40 tumbled 0.73 percent while U.K. shares fell 0.33 percent.
The Mortgage Bankers Association reported that its index of mortgage application activity declined 0.6 percent in the week ending October 18, versus a 0.3 percent rise in the earlier week. Import prices climbed 0.2 percent in September, versus a 0.2 percent gain in August.
The FHFA home-price index rose 0.30% in August, versus economists' expectations for a 0.80 percent gain.
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