By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fell for a second session
Thursday as the busiest day yet for first-quarter earnings yielded
disappointments from online auctioneer EBay Inc. and insurer
UnitedHealth Group Inc.
Looking at the 83 S&P 500 companies that have reported so
far, there is"positive growth, but the rate of year-over-year
quarterly earnings growth has decelerated, so it's creating a
little bit of a growth scare; I think it's going to prove
temporary," said Nick Raich, CEO at The Earnings Scout.
The Dow Jones Industrial Average (DJI) fell 81.56 points to
14,537.03, with UnitedHealth Group Inc. (UNH) leading declines that
included 22 of its 30 components.
UnitedHealth said first-quarter earnings fell 14% as higher
medical bills continued to outpace increased revenue. Shares fell
3.7%.
Verizon Communications Inc. (VZ) rose 3.2% as an increase in
wireless customers had it topping profit estimates.
The S&P 500 index (SPX) lost 11.31 points to 1,540.7, with
technology pacing losses and telecommunications faring best of its
10 major sectors.
The Nasdaq Composite (RIXF) shed 42.46 points to 3,162.2.
Shares of Apple Inc. (AAPL) fell for a second session, below
$400 each, continuing a drop sparked by results from Apple supplier
Cirrus Logic Inc. (CRUS), which this week forecast fiscal
first-quarter revenue below estimates, with the audio-chip
manufacturer's reported inventory glut suggesting a saturated
smartphone market.
EBay (EBAY) retreated 5.8% after reporting revenue below
expectations.
Economic news also weighed on sentiment.
U.S. leading indicators fell in March for the first time in
seven months, with the Conference Board's measure of what's ahead
down 0.1% after rising 0.5% for each of the first two months of the
year.
The Federal Reserve Bank of Philadelphia's manufacturing index
decreased in April to 1.3 from 2 the month before.
Stock-index futures had maintained gains after the Labor
Department reported the number of Americans filing claims for
jobless benefits held little changed last week, rising by 4,000 to
352,000.
After a bit of volatility in the weekly count of those filing
for unemployment benefits, "claims are back to a more normalized
level," said Dan Greenhaus, chief global strategist at BTIG LLC in
New York.
"We haven't yet seen the effects of the sequester, which may be
because there are no effects, or that the effects are delayed," he
said of the $85 billion in automatic cuts in government spending
that began March 1.
"While there are other things to worry about, at the end of the
day, earnings will decide whether we go higher or lower," he
added.
For every three stocks rising more than four gained on the New
York Stock Exchange, where 437 million shares traded as of 2:20
p.m. Eastern.
Composite volume surpassed 2.5 billion.
On the New York Mercantile Exchange, crude futures (CLK3) rose
51 cents to $87.19 a barrel and gold (GCM3) rose $7.00 to $1,389.7
an ounce.
The U.S. dollar (DXY) fell against other currencies, including
the euro (EURUSD). Treasury prices rose, with the yield on the
benchmark 10-year note (10_YEAR) falling to 1.693%.
U.S. stocks posted sharp losses Wednesday, spooked by
disappointing corporate results and worries over Apple Inc. (AAPL)
after one of the consumer-technology company's suppliers offered a
weak first-quarter outlook. Apple shares on Wednesday slumped below
the $400 level for the first time since September 2011, ending the
day down 5.5% at $402.80.
Morgan Stanley swung to a first-quarter profit, benefiting from
a comparison with a year-earlier period that was affected by a
heavy charge related to debt. Shares dropped 3% as revenue came in
below forecasts.
Food-and-beverage firm PepsiCo Inc. (PEP) said first-quarter
earnings fell 4.6% as restructuring and other charges masked
stronger-than-expected growth.
Flash-memory maker SanDisk Corp. (SNDK) gained after beating
first-quarter expectations.
Philip Morris International Inc. (PM) on Thursday said
first-quarter profit fell 1.7% as cigarette shipments dropped
6.5%.
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