U.S. stock gains limited to Dow industrials
Apple shares hit after earnings disappoint
NEW YORK (MarketWatch) — NEW YORK (MarketWatch) — U.S. stocks closed mostly lower Wednesday as an earnings miss from Apple Inc. dented cheer in the technology sector.
“Earnings are a mixed bag and we’re getting a mixed reaction,” said Art Hogan, a strategist at Lazard Capital Markets.
“Positive results from industrial-related companies are being partially offset by weakness in technology and the consumer space,” said Lawrence Creatura, portfolio manager at Federated Investors in Rochester, N.Y. “Apple (NASDAQ:AAPL) is the dominant contributor to the weakness in technology.”
Upbeat outlooks from construction-equipment maker Caterpillar Inc. (NYSE:CAT) and aerospace company Boeing Co. (NYSE:BA) helped the Dow Jones Industrial Average avoid a fourth down session.
Rising as much as 115 points during the session, the Dow industrials (DJI JIA) rose 58.73 points, or 0.5%, to 12,676.05.
The S&P 500 index (SNC:SPX) fell nearly half a point to 1,337.89, with technology the weakest and telecommunications the strongest performer among its 10 industry groups.
The Nasdaq Composite (NASDAQ:COMP) declined 8.75 points, or 0.3%, to 2,854.24. Without Apple’s impact, the index would have finished the session with a slight gain.
“Seventy-one percent of companies that have reported so far have beat estimates, which is a little higher than average, and 40% have beaten revenue estimates, and that number is usually about 60%, so that’s lower than normal,” said Lazard Capital’s Hogan.
“It’s the better-than-expected earnings that are catching us by surprise when they shouldn’t because we lowered the bar so much,” he added. http://www.marketwatch.com/story/us-stocks-wa...beforebell