By Steven Russolillo
NEW YORK (MarketWatch) -- U.S. stocks fell Thursday afternoon as
bulls failed to follow up on encouraging weekly jobless claims data
and a plethora of corporate earnings reports.
The Dow Jones Industrial Average (DJI) lost 60 points, or 0.5%
to 11,099.
Exxon Mobil (XOM), led the earnings parade Thursday morning. The
oil giant's third-quarter earnings rose a bigger-than-expected 55%
as it benefited from stronger commodities prices and refining
margins in the first full quarter that included its June
acquisition of natural-gas producer XTO Energy. Shares rose
1.1%.
3M (MMM) was among the Dow's worst performers, falling 6.9%
after its earnings report disappointed investors. The consumer and
industrial manufacturer's third-quarter profit jumped 16% on higher
sales at a bulk of its operating divisions. But 3M merely narrowed
its 2010 profit target due to the impact of acquisitions made in
recent months.
The Standard & Poor's 500-share index (SPX) traded off 0.27%
to 1179, led by telecom services and consumer staples. Financials
lagged. The technology-heavy Nasdaq Composite (RIXF) fell 0.4% to
2,493.
Initial unemployment claims declined by 21,000 to 434,000 in the
week ended Oct. 23, the Labor Department said in its weekly report
Thursday. That brings claims down to levels last seen since the
week ended July 10. Economists polled by MarketWatch had expected
initial claims to fall to a seasonally adjusted 450,000 in the week
ended Oct. 23.
A slew of corporate quarterly reports also came in.
Dow Chemical (DOW) shares fell 1.25% after the chemicals company
reported a 25% drop in third-quarter profit because of the impact
from divestitures. Results from continuing operations topped
analysts' expectations as sales improved across the board.
Eastman Kodak's (EK) third-quarter loss narrowed on fewer
charges and much higher margins. The camera maker's results topped
Wall Street's expectations and shares jumped 11%.
Colgate-Palmolive's (CL) third-quarter earnings rose a
bigger-than-expected 4.9% on lower overhead and interest-expense
costs. Chief Executive Ian Cook said the consumer products company
anticipates "mid-single digit earnings per share growth" for next
year as it plans to strengthen its volume and market share. Colgate
shares fell 1.3%.
Las Vegas Sands (LVS) swung to a third-quarter profit on record
revenue resulting from strong growth at its casinos in the China
gambling enclave of Macau and the first full quarter of operations
at its Singapore casino. Shares surged 8.6%.
Potash Corp. of Saskatchewan (POT) said its third-quarter
earnings surged by more 60%, as strong demand for potash, phosphate
and nitrogen fertilizer products on the back of rising crop prices
lent support for the company's view that BHP Billiton PLC's (BHP)
hostile $38.6 billion bid significantly undervalues the company.
Potash shares fell 2.5%.
In the currency markets, the dollar weakened against both the
euro and the yen. The euro traded recently at $1.3885, up from
$1.3768 late Wednesday in New York. The U.S. Dollar Index (DX),
which tracks the currency against a basket of six others, fell
0.9%.
European stocks rose, lifted by Royal Dutch Shell (RDSA), which
reported a profit that beat forecasts, and drug maker
Sanofi-Aventis (SNY). The Stoxx Europe 600 Index gained 0.35%.
Asian markets were mixed. Strong bank earnings pulled Hong Kong
and Australian stocks higher, while resources shares turned lower
in Tokyo and Shanghai after a drop in commodity prices.
Demand for Treasurys rose, pushing the yield on the 10-year note
(UST10Y) down to 2.68%. Crude-oil prices rose 67 cents to $82.60 a
barrel, while gold futures edged up.