Star-Bulletin news services
Investors take profits
amid break in reports
NEW YORK >> Wall Street edged lower yesterday as investors sought profits from the previous day's session, taking a pause between key economic reports while the earnings season winds down.
After sending the markets higher on an encouraging report from the manufacturing sector Monday, investors were sifting through some of the last third-quarter results and awaiting employment numbers, due later this week. The gap between economic reports made it a good day to take money off the table, said Brian Williamson, an equity trader at The Boston Company Asset Management.
"What you're seeing here is kind of a void between economic data," Williamson said. "Stocks are up and money managers have to take profits. With two months to go in the year, they'll want to lock in whatever gains they can."
The Dow Jones industrial average fell 19.63, or 0.2 percent, at 9,838.83. The Nasdaq composite index declined 9.74, or 0.5 percent, to 1,957.96. The Standard & Poor's 500 index lost 5.77, or 0.5 percent, to close at 1,053.25.
Advancers and decliners were about even on the New York Stock Exchange. Volume was moderate, with 1.38 billion shares traded, compared to 1.36 billion on Monday.
The Russell 2000 index closed up 1.03, or 0.2 percent, at 538.87.
The NYSE composite index fell 20.06, or 0.3 percent, to 5,975.92. The American Stock Exchange composite index rose 1.67, or 0.2 percent, to 1,062.98.
The Treasury's two-year note rose 2/32 to 99 1832, with its yield falling 3 basis points to 1.84 percent. The 10-year note gained 1 1/32 to 99 2032, with its yield dropping 5 basis points to 4.30 percent.
Among companies reporting results yesterday, Clear Channel Communications Inc., which owns seven radio stations in Hawaii, said its third-quarter earnings tripled, largely on gains from its sale of shares in Spanish-language broadcaster Univision. The radio and advertising giant dipped 30 cents to close at $41.10.
The Gillette Co. easily beat analysts' estimates with an 18 percent rise in third-quarter earnings, thanks to strong blade and razor sales. Its stock rose $1.65, or 5.1 percent, at $34.15.
Advancers also included Tyco International Ltd., which closed up $1.48, or 7 percent, at $22.50, after the company said its quarterly losses had narrowed sharply. Excluding charges, Tyco earned 34 cents a share, beating Wall Street estimates by a penny. The troubled industrial conglomerate plans to slash about 7,200 jobs under a restructuring plan that will consolidate more than 200 facilities.
After the market closed, Priceline.com Inc. reported earnings that beat analyst expectations by 3 cents a share, but the online travel broker lowered its fourth-quarter earnings forecast in part because of a downturn in its airline business. Priceline, which gained 56 cents to close at $29.25 in the regular session, plunged 20 percent in after hours trading.
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