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United Parcel Service sank $5.33, or 5.8 percent, to $86.12 after saying its second-quarter and full-year earnings will be less than analysts have been expecting because the company's customers are using cheaper shipping options. UPS also said it's seeing a slowdown in U.S. industry. FedEx fell, too. Its shares were down $2.11, or 2 percent, to $102.29. Boeing dropped after a fire on a 787 parked at Heathrow Airport, and after another 787 had to divert to a different airport. Boeing struggled earlier this year after its new 787 was grounded for more than three months because of smoldering batteries, and investors are nervous about any additional problems with the plane. Before news of the fire broke, Boeing set a new 52-week high of $108.15 earlier Friday. The stock dropped $5.01, or 4.7 percent, to close at $101.87 on high volume. Boeing was the biggest decliner in the Dow. Other stocks with notable moves included: Gap rose 34 cents, or 0.8 percent, to $45.10. Three analysts lifted their price targets after Gap posted revenue at stores open at least a year that was better than the market was expecting. WebMD jumped $6.86, or 25 percent, to $33.82 after the medical website operator sharply raised its forecast for its second-quarter results, citing strong demand from advertisers. RadioShack Corp. rose 29 cents, or 11 percent, to $2.92. Investors were spooked late Thursday after a report that it had hired financial advisers. But they appeared to be reassured after the struggling electronics retailer said it has a strong balance sheet and that the "sole focus" of its discussions with advisers is making its balance sheet stronger. The yield on the 10-year Treasury note rose slightly to 2.59 percent from 2.57 percent. The yield has risen almost a full percentage point since early May, pushing interest rates higher for mortgages and other loans. There's a fear that higher rates could hurt housing and business borrowing. John Fox, director of research at Fenimore Asset Management, said housing is improving, employment is improving, and retail and auto sales are good. "Is that all just going to disappear if we have a 3.5 percent Treasury bond? I don't think it will." Crude oil rose $1.04 to close at $105.95 per barrel in the U.S. Other energy prices also rose. Gold slipped $2.30 to $1,277.60.
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