Stock averages end broadly lower, in the lower end of the day's
range. The Dow Jones Industrial Average has now logged back-to-back
triple-digit losses, dropping back below the key 10,000 mark. The
S&P 500 is also down 1%. The Nasdaq fell a less-dramatic 0.6%.
Stocks rather quickly gave up very early, modest gains when mixed
earnings results, a stronger dollar's impact on commodities and early
declines in the financial space proved too much for the broader
averages.
Earnings news has been mostly positive, yet this picture has been
priced into trading over several weeks now. Verizon (
VZ) give up its
early advance seen following an earnings beat, for example.
Stocks have traded in choppy fashion since hitting fresh 2009 highs around mid-month.
Stocks were also under a little pressure after a Chicago Fed National Activity index fell slightly in September.
For September, the index slipped to negative 0.81 from negative
0.65 in August. In September, production and income indicators were
positive for the third straight month, but the other three main
categories -- employment, sales and consumption -- remained negative.
There were no additional economic reports on the slate for Monday.
Treasury's sale of $7 billion in 5-year notes depressed bond market
prices, driving up yields.
Commodities-linked and materials shares declines weighed on the broader market.
Crude oil futures for December delivery fell $1.82, or 2.3%, to
$78.68 a barrel after earlier reaching a high of $81.59. The bounce in
the U.S. dollar, oil supplies offset a report suggesting the U.S.
economy has already emerged from recession. Natural gas fell 27 cents,
or 5.7%, to $4.513 per million British thermal units.
In company news:
Verizon Communications (
VZ) reported Q3 EPS of $0.60 vs $0.66 a
year earlier and just topping the Thomson Reuters mean analyst estimate
for $0.59. Verizon's total operating revenues grew 10.2% to $27.3
billion. The Street looked for $27.1 billion.
Corning (
GLW) turned lower. It reported Q3 EPS ex-items of $0.42 vs
$0.46 a year earlier but topping the Thomson Reuters mean analyst
estimate for $0.39. Sales of $1.5 billion, were down from $1.6 billion
a year earlier. The Street looked for $1.42 billion.
BioCryst Pharmaceuticals (
BCRX) was a rare, sharp gainer. The
company said the U.S.
