First Posted: 7/16/2013
(AP) Disappointing earnings news pushed the stock market lower on Tuesday.
Coca-Cola, the world’s largest beverage maker, fell after the company said it sold less soda in its home market of North America. Marathon Petroleum, a fuel refiner, said its business was being hurt by renewable fuels laws and forecast weak earnings for the second quarter. Retail brokerage Charles Schwab’s second quarter earnings fell short of the expectations of analysts.
The Dow Jones industrial average fell 56 points, 0.4 percent, to 15,427 as of noon Eastern Daylight Time. The Standard & Poor’s 500 index declined seven points to 1,674. The Nasdaq composite dropped 14, or 0.4 percent, to 3,592.
“Earnings are taking the lead at this point in time,” said Brad Sorensen, Charles Schwab’s director of market and sector research. “So far it’s been decent, but nothing to get excited about.”
Coke dropped 82 cents, or 2 percent, to $40.18 after the company reported that its second-quarter profit fell 4 percent. Charles Schwab fell 87 cents, or 4 percent, to $20.84 after its earnings came in short of analysts’ expectations as expenses rose and its interest margins fell. Marathon Petroleum fell $3.63, or 5 percent, to $69.44.
Overall S&P 500 earnings are expected to grow by 3.2 percent in the second quarter from the same period a year ago, according to data from S&P Capital IQ. The rate of earnings growth is predicted to rise in the third and fourth quarters.
The stock market has climbed back to record levels following a brief slump in June, when the S&P 500 logged its first monthly decline since October on concern that the Federal Reserve would ease back on its economic stimulus too quickly. The S&P 500 gained for eight straight trading sessions through Monday, its longest winning streak since January. If the index were to advance today, it would mark the longest series of advances since 2004.
On Tuesday, nine of the 10 industry groups in the S&P 500 fell. The declines were led by energy companies. Phone companies were the only group to gain.
In government bond trading, the yield on the 10-year Treasury note was unchanged from 2.54 percent Monday. The yield, which moves inversely to its price, has fallen since surging as high as 2.74 percent July 5.
In commodities trading, the price of crude oil fell 27 cents, or 0.2 percent, to $106.08 a barrel and gold rose $6.70, or 0.5 percent, to $1,290.10 an ounce.
The dollar fell against the euro and the Japanese yen.
Among other stocks making big moves:
Cintas Corp., a supplier of uniforms, fell 94 cents, or 1.9 percent, to $46.96 after the company said late Monday that its fiscal fourth-quarter net income rose 9 percent, but it gave a tepid outlook for the current year due in part to the health care overhaul law.
Heidrick & Struggles International dropped $2.77, or 16 percent, to $15.09 after the executive search firm said it is longer pursuing a sale of its business and that its CEO is stepping down.
Ford fell 60 cents, or 3.5 percent, to $16.52 after Goldman Sachs removed the carmaker from its “conviction buy list” due to a lack of catalysts to push the company’s stock higher in the near future. Ford has gained 27 percent this year.