This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Markets Drop as Caterpillar Slip Suggests Slowdown

Stocks in this article: BA LCC

NEW YORK ( TheStreet) -- U.S. stocks slumped Wednesday, slipping from new highs, as Caterpillar  (CAT), the construction and mining equipment leader, posted earnings that fell short of expectations and China, the world's second-largest economy, revealed a spate of bad business loans.

The S&P 500 was off 0.47% to close at 1,746.38 while the Dow Jones Industrial Average dropped 0.35% to 15,413.33. The Nasdaq decreased 0.57% to 3,907.07.

Equities around the globe fell after China reported a tripling of write-offs in bad bank loans, and as short-term money rates spiked amid signs that the central bank could tighten liquidity in order to temper inflation.

Caterpillar tumbled 6.1% to $83.76 after the Peoria-based company's net income for the third-quarter missed analyst forecasts by 21 cents at $1.45 a share and slashed its full-year sales outlook. CEO Doug Oberhelman said that it has been a "difficult" year for Caterpillar, particularly in mining.

FMC Technologies (FTI) was the worst performer in the S&P 500 after the manufacturer of services systems lowered its profit margin forecast for its subsea technology unit, the company's largest business. Shares lost 8.6% to $52.78.

Corning (GLW) was one of the largest percentage gainers in the S&P 500 on Wednesday after the manufacturer of glass used for computer monitors and LCD televisions said it approved a $2 billion buyback of shares and agreed to acquire Samsung's 43% hold in Samsung Corning Precision Materials. Shares soared 14% to $17.52.

Boeing (BA) shares jumped 5.3% to $129.02 after it beat Wall Street earnings  estimates and raised guidance. The company said it earned $2.1 billion or $1.80 a share excluding items. Analysts surveyed by Thomson Reuters had estimated $1.55. Revenue rose 11% to $22.1 billion, narrowly beating  expectations of $21.7 billion.

US Airways (LCC) fell 2.5% to $21.40 as third-quarter profit slipped 12 percent to $216 million due mainly to higher income tax expenses. Revenue was up 9.1 percent to a record $3.9 billion. The airline faces a U.S. Justice Department lawsuit challenging its proposed merger with American Airlines parent AMR (AAMRQ).

COMEX Gold for December delivery lost 0.64% to settle at $1334, while oil lost 1.5% to close at $96.86. The benchmark 10-year Treasury note gained 5/32, diluting the yield to 2.496%. The U.S. dollar index was up 0.01% to $79.27.

--By Jane Searle and Joe Deaux in New York.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs