Stock drop on mixed earnings; Caterpillar sinks

[October 29, 2013]  NEW YORK (AP) -- Mixed earnings reports pushed stocks lower in early trading on Wednesday.

Caterpillar slumped after the maker of mining and construction equipment said its third-quarter earnings plunged 44 percent. The company cut its earnings forecast again. The stock dropped $5.12, or 5.7 percent, to $84.06.

Boeing jumped after raising its profit estimate for the full year as deliveries of commercial planes continue to accelerate. The plane maker's stock climbed $6.22, or 5 percent, to $128.63.

The Standard & Poor's index fell back from a record, dropping 12 points, or 0.7 percent, to 1,742 in early trading. The Dow Jones industrial average fell 91 points, or 0.6 percent, to 15,377. The Nasdaq composite dropped 35 points, or 0.9 percent, to 3,894.

The S&P 500 has closed at a record for four straight days as investors became more convinced that the Federal Reserve will refrain from easing back on its economic stimulus until possibly next year.

The central bank is currently buying $85 billion in bonds every month to keep interest rates low. That stimulus program has underpinned a 4 1/2 year rally in stocks.

In government bond trading, the yield on the 10-year note was unchanged at 2.51 percent.

In commodities, the price of oil fell again. Oil slipped $1.95, or 2 percent, to $96.38 a barrel, its lowest price in four months. The price of gold fell $10.40, or 77 cents, to $1,322.40 an ounce.

Among other stocks making big moves:

• Corning surged $2.32, or 15.6 percent, to $17.78 after the company announced a new tie-up with a Samsung Electronics subsidiary that will boost the glass maker's earnings immediately.
  

• Safeway rose $2.85, or 8.7 percent, to $35.75 following a report from Reuters late yesterday that "a handful" of buyout firms, including Cerberus Capital Management, are exploring a deal for all, or part, of the supermarket chain.
  

• Broadcom fell $2.11, or 7.8 percent, to $25.05. The communications chip maker reported adjusted results that exceeded Wall Street expectations, but the company's earnings forecast disappointed investors.

[Associated Press; By STEVE ROTHWELL]

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