Mid-Afternoon Market Update: Markets Remain in the Red as Corning Recovers More of its Gains
Toward the end of trading Wednesday, the Dow traded down 0.31 percent to 15,419.96 while the NASDAQ tumbled 0.58 percent to 3,906.54. The S&P also fell, dropping 0.43 percent to 1,747.40.
Caterpillar (NYSE: CAT) reported downbeat third-quarter earnings and cut its full-year view. 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 25.21 percent to $26.22 after the company reported better-than-expected fourth-quarter results. Shares of Corning (NYSE: GLW) got a boost, shooting up 13.94 percent to $17.48 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 17.45 percent to $61.35 after the company issued a downbeat earnings forecast for the fiscal fourth quarter. Needham downgraded Cree from Buy to Hold. Gigamon (NYSE: GIMO) was also down, falling 10.61 percent to $35.47 after the company priced its 5.1 million share follow on secondary offering at $38.50 per share Tuesday.
In commodity news, oil traded down 1.43 percent to $96.89, while gold traded down 0.75 percent to $1,332.50. Silver traded down 0.49 percent Wednesday to $22.59, while copper fell 2.14 percent to $3.26.
European shares were lower today. The Spanish Ibex Index fell 1.95 percent, while Italy's FTSE MIB Index declined 2.38 percent. Meanwhile, the German DAX dropped 0.42 percent and the French CAC 40 tumbled 0.81 percent while U.K. shares fell 0.48 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 percent in August, versus economists' expectations for a 0.80 percent gain.
Crude stockpiles climbed 5.2 million barrels for the week ended October 18, the US Energy Information Administration reported. However, analysts were expecting an increase of 3 million barrels.
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