Updated from 4:16 p.m. EDTThere weren't any
"Oil is a big story, but there continues to be positive economic news as well," said Edgar Peters, chief investment officer with Pan Agora. "There's been a push-pull with the prospect for higher interest rates and oil prices." Shares of oil companies were trading lower. BP ( BP) fell 2.6% after the company estimated that hurricanes Katrina and Rita will lower its third-quarter replacement-cost profit by more than $700 million, before interest and taxes. Additionally, Valero ( VLO) was lower by 3.1%, and Exxon Mobil ( XOM) closed down 3.1%. Meanwhile, Chesapeake Energy ( CHK) was weaker after the company late Monday announced the acquisition of Columbia Natural Resources for $2.2 billion in cash and the assumption of $75 million in debt. Chesapeake lost $1.24, or 3.2%, to $37.62. Monday began the last quarter of 2005 with mixed results after a strong September ISM manufacturing report raised worries that the Federal Reserve has more reason to continue its rate-hiking campaign. The Dow Jones Industrial Average lost 33, the S&P 500 dipped by 2 points, and the Nasdaq Composite gained about 4 points. On the economic front, the Census Bureau said factory orders rose 2.5% in August. Economists expected orders to increase by 1.8% after a 1.9% decline in July. "While the economic data still remain good or better than expected, it still brings up concerns that the Federal Reserve will continue to raise rates," said Peter Cardillo, chief market analyst with S.W. Bach & Co. Among companies, Lexmark International ( LXK) plunged 28.6% after the company warned that third-quarter earnings and revenue will come in below expectations. The company now expects third-quarter earnings of 40 cents to 50 cents a share, down from its previous forecast of 95 cents to $1.05 a share. Revenue will likely fall 4% to 5% from a year ago. Lexmark blamed the warning on declining laserjet and inkjet supplies revenue. Shares fell $17.44 to $43.50.
Clorox ( CLX) also issued a profit warning, cutting its earnings target for the second quarter to a range of 41 cents to 47 cents a share from its previous outlook of 50 cents to 57 cents a share. The company also cut its full-year earnings from its previous guidance. Clorox cited rising energy costs as the reason for the earnings warning. The stock lost 77 cents, or 1.4%, to $53.81. After the closing bell Monday, CMGI ( CMGI) posted fourth-quarter earnings of $300,000, or less than a penny a share, compared with a loss of $6.8 million, or 2 cents a share, a year ago. Revenue jumped to $251.2 million from $96.5 million a year earlier after the acquisition of Modus Media. CMGI gained 2 cents, or 1.2%, to $1.73. Google ( GOOG) and Sun Microsystems ( SUNW) announced a collaborative effort Tuesday involving distribution of a new software product that will compete with Microsoft's ( MSFT) Office and Outlook programs. Google was down $7.68, or 2.4%, to finish at $311, while Sun gained a penny, or 0.2%, to $4.20. In ratings moves, Goldman Sachs cut Texas Instruments ( TXN) to underperform from in-line as the firm believes the company's margins are cyclically peaking. TI fell by $1.87, or 5.5%, to $32.01. Citigroup downgraded Procter & Gamble ( PG) to hold from buy, citing concerns over raw material pricing. The firm also cut its stock price target to $59 from $61. P&G was down $1.23, or 2.1%, to finish at $58.08. Overseas markets were mixed, with London's FTSE 100 down 0.3% at 5486 and Germany's Xetra DAX adding 0.9% to 5129. In Asia, Japan's Nikkei gained 1.6% overnight to 13,738, while Hong Kong's Hang Seng slipped 0.1% to 15,382.