Fretting Over Fed Slams Stocks

Time Warner(TWX Quote) said it earned 24 cents a share in its fourth quarter, excluding items, ahead of analysts' estimates for 15 cents a share. Revenue was up 6.4%. The stock lost 85 cents, or 4.5%, to $17.96.

Altria Group (MO Quote) reported a quarterly profit of $1.06 and a 10.2% rise in revenue, in line with expectations. The company, formerly known as Philip Morris, earned 93 cents last year. The stock added 50 cents, or 0.9%, to $55.50.

After Tuesday's close, Amazon.com (AMZN Quote) met analysts' expectations with a profit of 29 cents in the fourth quarter, a 10-cent improvement over last year. The company reported a 36.2% surge in revenue, but investors were concerned that it was driven by overly aggressive discounting to garner market share. The stock fell $3.78, or 6.8%, to $51.96.

Anadigics(ANAD Quote) posted a loss of 37 cents a share in its fourth quarter, worse than the consensus expectations for a loss of 35 cents a share. Revenue jumped 25%. The shares lost 76 cents, or 9.7%, to $7.08.

In research, Bear Stearns downgraded shares of Caterpillar(CAT Quote), while Network Associates(NET Quote) was upgraded at both Bank of America and Credit Suisse First Boston. Caterpillar shares slipped $2.38, or 2.9%, to $79.62, while Network Associates gained $1.66, or 10.3%, to $17.77.

Looking ahead, the market is likely to refocus on fourth-quarter earnings reports Thursday. Highlights include: Boeing (BA Quote), Exxon Mobil (XOM Quote), Honeywell (HON Quote), Jetblue Airways (JBLU Quote), Sears, Roebuck (S Quote) and Gateway (GTW Quote).

In economic news, look for further readings on the tepid U.S. labor market. The government will release its employment cost index for the fourth quarter and the Conference Board is due to release its help-wanted index for December. In addition, initial jobless claims for the week ended Jan. 24 are expected to fall slightly to 340,000, making it 17 straight weeks under the key 400,000 level thought necessary for labor market improvement.