NEW YORK (AP) — Stocks are taking small losses Tuesday after several U.S. companies delivered disappointing results and forecasts. UPS sank, and so did engine maker Cummins. Energy companies fell along with the price of crude oil.
KEEPING SCORE: The Standard & Poor’s 500 index fell six points, or 0.3 percent, to 2,065 at 10:56 a.m. Eastern time. The Dow Jones industrial average fell 31 points, or 0.2 percent, to 17,590. The Nasdaq composite index lost 11 points, or 0.2 percent, to 5,023.
EARNINGS: While the broader markets were little changed as investors turned their eyes to the Federal Reserve’s policy meeting, third-quarter earnings reports had a powerful effect on companies that surpassed or fell short of Wall Street estimates.
Health care stocks traded higher on strong earnings from some of the world’s largest drug companies. Pfizer raised its profit forecast after its third-quarter results were better than expected, while Bristol-Myers said sales of key new medicines like the cancer drugs Opdivo and Yervoy improved.
Ford reported improved sales of its new F-150 pickup truck, but its net income fell short of Wall Street estimates and the shares lost 62 cents, or 4 percent, to $15.06.
UPS slumped after the package delivery company surprised investors by saying its revenue dipped in the third quarter. The stock lost $3.10, or 2.9 percent, to $103.08
Engine maker Cummins dropped $10.13, or 9 percent, to $101.97 85 after the company posted disappointing third-quarter results and cut its outlook for the year. Cummins said it will eliminate up to 2,000 jobs because of a slowdown in the global markets.
Alibaba, the Chinese e-commerce giant, said it got a big boost from mobile sales in the third quarter. The results reassured investors about Alibaba’s performance while prospects for the Chinese economy remain uncertain. Alibaba rose $3.39, or 4.4 percent, to $79.74. Yahoo, which owns a big stake in Alibaba, picked up $1.01, or 3 percent, to $34.41.
OIL HITS TWO-MONTH LOW: Energy stocks declined as the price of U.S. oil fell to its lowest level since late August. Low oil prices have also battered company earnings.
Benchmark U.S. crude fell $1.20 to $42.78 a barrel on the New York Mercantile Exchange. Brent crude, which is used to price international oils, fell 71 cents, or 1.5 percent, to $46.83 a barrel in London.
Chesapeake Energy fell 33 cents, or 4.6 percent, to $6.80, while Marathon Oil gave up 62 cents, or 3.5 percent, to $16.97 and Anadarko Petroleum lost $1.97, or 2.9 percent, to $67.03.
CENTRAL BANKS: The Federal Reserve begins its two-day meeting Tuesday. Few expect the Fed to raise interest rates because U.S. inflation is low and the economic recovery remains uneven. Bank of Japan policymakers are also meeting on Friday and are expected to leave the door open to additional monetary stimulus.
OVERSEAS: In Europe, Britain’s FTSE 100 was down 0.5 percent and Germany’s DAX shed 0.5 percent. France’s CAC 40 dropped 0.7 percent. Asian markets closed mostly lower but Chinese stocks turned positive.
CURRENCIES: The dollar fell to 120.36 yen and the euro edged down to $1.1045 from $1.1057.
BONDS: Bond prices rose. The yield on the 10-year Treasury note fell to 2.03 percent from 2.06 percent late Monday.
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