Stocks backed away from multiyear highs Tuesday as a weak quarter at
and a handful of profit warnings chased out the momentum players.
Index futures recently showed the
trading 5 points below fair value, while the Nasdaq 100 was set for a 7-point decline. The 10-year Treasury bond was down 5/32 in price to yield 4.39%, 3 basis points above the two-year note, while the dollar was higher against the yen and lower against the euro.
Oil, which fell 81 cents Monday as warm-weather forecasts beat back the bulls, headed back up. Crude for February delivery was recently gaining 48 cents to $63.98 a barrel in electronic Nymex trading, threatening another four-month high. Natural gas futures were unchanged at $9.36 per million British thermal units.
Stocks are coming off a rousing session in which the
Dow Jones Industrial Average
, paced by a nearly 8% run in
, pushed past 11,000 for the first time since mid-2001. The Dow, S&P 500 and
all begin trading Tuesday at their best levels in more than four years.
Enthusiasm dimmed after the bell when
said fourth-quarter earnings fell 16% from a year ago to $224 million, or 26 cents a share. Adjusted earnings of 35 cents a share were 2 cents below Wall Street estimates.
That news hit overseas stocks. London, the FTSE 100 was recently down 0.6% to 5697, while Germany's Xetra DAX is losing 0.8% to 5491. In Asia, Japan's Nikkei swooned 1.9% overnight to 16,124, while Hong Kong's Hang Seng dipped 0.1% to 15,570.
Two other Dow components could exert downward pressure. One is GM, which reportedly will face a call for a lower dividend from a representative of major shareholder Kirk Kerkorian in Detroit Tuesday. The other is
, which was downgraded to neutral by CSFB Tuesday based on valuation.
To view David Peltier's video take on today's market, click here
Machine vision systems maker
said Monday that order delays would leave fourth-quarter earnings below estimates. Cognex expects to earn 23 cents a share in the period, 3 cents below the Thomson First Call view.
( WYE) expects to earn $3.09 to $3.22 a share next year, excluding stock options, up about 10% from the comparable 2005 profit. The Thomson First Call 2006 consensus on Wyeth is $3.16 a share.
said it agreed to acquire construction materials wholesaler
( HUG) for $46.50 a share, a 21% premium to Hughes Supply's Monday close.