This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Markets Are Weighed Down By Disappointing Earnings

Shares rose for Caterpillar, the world's largest construction and mining equipment company, gaining 48 cents to $84.34. But the company warned that it expects lower profit and revenue for the rest of the year.

And the reports on Monday followed other dissatisfying results last week from companies like Microsoft, General Electric and McDonald's.

To be fair, most companies are reporting better-than-expected profits. But now, investors want to know how companies are faring on revenue. Revenue can give a more accurate picture of how a company is performing, because profits can vary widely on items like accounting charges and cost-cutting.

David Katz, principal and senior portfolio strategist at WeiserMazars Wealth Advisors in New York, described companies' third-quarter revenue results as "fair" and said the U.S. economy is "slow and steady."

"It is at a snail's pace," he said. "But it's certainly better than what we had."

Of the roughly 100 companies in the S&P 500 that had reported third-quarter results as of Friday, 70 percent have beat analysts' estimates for profits, according to John Butters, senior earnings analyst at FactSet. But only 42 percent have beat estimates for revenue. That's the lowest since the first quarter of 2009, when the stock market hit its Great Recession lows.

Company profits so far this quarter are down 2.3 percent compared to a year ago. Revenue is down 0.6 percent.

One stock that jumped was Ancestry.com, the genealogy website, which announced it will be bought by European private equity firms. The stock popped $2.28 to $31.46. The buyers had offered $32 per share.

In other trading, the yield on the 10-year Treasury note rose to 1.79 percent from 1.76 percent late Friday. The euro was worth $1.30, little changed from Friday, and energy prices fell slightly. Crude oil fell $1.11 to $89.33 a barrel in New York.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs