NEW YORK - US stocks ended a touch lower on Wednesday, giving up gains in the final minutes of trading, as a disappointing forecast from jet maker Boeing offset stronger-than-expected results from General Motors and gains in the energy sector.
On the Nasdaq, shares of internet retailer Amazon.com Inc. sank
to a three-year low, a day after the company cut its earnings outlook, darkening prospects for tech and consumer shares.
Boeing was the biggest drag on the Dow after the aircraft maker and US defence contractor raised its 2007 outlook. But its forecast failed to match some more optimistic expectations on Wall Street and its shares fell 4.6 per cent after registering strong gains in the previous two sessions.
The session, which was punctuated by volatility, threw some cold water on the week's strong start, when stocks rallied two days in a row.
"This is peak earnings season, and the market is just sorting out stocks that beat expectations versus stocks that were short of expectations," said Giri Cherukuri, head trader at OakBrook Investments LLC, which oversees US$1.3 billion in Lisle, Illinois.
The Dow Jones industrial average dipped 1.20 points, or 0.01 per cent, to end at 11,102.51. The Standard & Poor's 500 Index inched down 0.48 of a point, or 0.04 per cent, to finish at 1,268.40. The Nasdaq Composite Index slipped 3.44 points, or 0.17 per cent, to 2,070.46.
Stocks were higher for part of the afternoon after the release of the Federal Reserve's Beige Book of regional economic conditions, which reinforced the view that the Fed could soon end its cycle of interest-rate hikes.
But the late afternoon gains faded by the closing bell.
Amazon shares dropped 21.8 per cent, or US$7.33, to close at US$26.26 on Nasdaq, after earlier falling as low as US$25.96. Both the closing level and the session low were the lowest prices for Amazon's shares since April 2003. Amazon was the heaviest weight on the Nasdaq 100.
Boeing's stock fell 4.6 per cent, or US$3.85, to close at US$79.90 on the New York Stock Exchange. In addition to dragging on the Dow, Boeing also was among the major decliners in the S&P 500 -- ranking only behind Corning and United Parcel Service.
CORNING FALLS, EXXON MOBIL CLIMBS
Shares of Corning, maker of liquid crystal display components, slid 14.5 per cent, or US$3.13, to US$18.52, a day after it warned third-quarter results would miss analysts' forecasts.
However, energy shares such as Exxon Mobil Corp. and ConocoPhillips rose, following a higher quarterly profit reported by ConocoPhillips, the No. 3 US oil company.
Exxon Mobil shares rose 1.2 per cent, or 81 cents, to close at US$66.55, after earlier hitting a lifetime high at US$67.18. Exxon Mobil is scheduled to report second-quarter earnings on Thursday.
ConocoPhillips shares gained 1.7 per cent, or US$1.15, to US$68.60.
"That highlights an area of the market where earnings are certainly not disappointing," said Eric Kuby, chief investment officer at North Star Investment Management Co. in Chicago.
Oil prices also ended slightly higher. US crude for September delivery added 19 cents to settle at US$73.94 a barrel.
Major retailers' shares, including Wal-Mart Stores Inc. and Home Depot Inc., also took a toll on the Dow average. Wal-Mart fell 2.2 per cent, or US$1, to US$43.67, while Home Depot shed 1.5 per cent, or 54 cents, to US$34.70.
"More strength in the energy markets means more pressure on the consumer, and that especially affects the retailers and discretionary stocks," said Rick Campagna, portfolio manager with Provident Investment Council in Pasadena, California.
BETTING ON BUD
The Dow's decline was limited by General Motors, whose shares rose 4.4 per cent, or US$1.34, to US$32 after reporting higher-than-expected operating profit.
In other earnings news, Anheuser-Busch Cos. Inc. shares touched a 14-month high at US$48.69 after the largest US brewer posted a higher quarterly profit that beat Wall Street's estimates on Wednesday afternoon. The shares closed on the NYSE at US$48.35, up 1.5 per cent, or 72 cents.
Trading was heavy on the NYSE, with about 1.81 billion shares changing hands, above last year's daily average of 1.61 billion, while on Nasdaq, about 2.14 billion shares traded, above last year's daily average of 1.80 billion.
Advancing stocks outnumbered declining ones by a ratio of about 9 to 7 on the NYSE, while decliners beat advancers by 8 to 7 on Nasdaq.
- REUTERS
NEW YORK - US stocks ended a touch lower on Wednesday, giving up gains in the final minutes of trading, as a disappointing forecast from jet maker Boeing offset stronger-than-expected results from General Motors and gains in the energy sector.
On the Nasdaq, shares of internet retailer Amazon.com Inc. sank
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