Earnings weigh on stocks

Written By limadu on Senin, 22 Oktober 2012 | 23.10

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NEW YORK (CNNMoney) -- U.S. stocks floundered Monday as investors took a cautious approach at the start of a big week for Corporate America.

Global bellwether Caterpillar (CAT, Fortune 500) kicked off the week's earnings deluge with a disappointing outlook, even as its quarterly results came in better than expected, citing continued economic weakness and uncertainty.

"We are taking a pragmatic view of 2013 -- we're not expecting rapid growth, and we're not predicting a global recession," said Caterpillar CEO Doug Oberhelman in a statement.

After a weak open, Caterpillar held on to slim gains, making it one of nine gainers on the Dow Jones Industrial Average. But General Electric (GE, Fortune 500) and Microsoft (MSFT, Fortune 500), which reported lackluster earnings last week, continued to drag on the blue chip index. The Dow slipped 0.3% in late morning trading.

The S&P 500 also lost ground, as a 3% decline in shares of VF Corp (VFC, Fortune 500) , the maker of North Face jackets and Wrangler jeans, weighed on the index. The company, which is also behind brands like Seven for all Mankind and Vans, posted revenue that missed expectations.

The Nasdaq was little changed, as gains in Netflix (NFLX) helped buoy the tech-heavy index. The online streaming service opens its books later this week, as do fellow tech heavyweights Facebook (FB) , Apple (AAPL, Fortune 500) and AT&T (T, Fortune 500) .

Related: Facebook's week of reckoning is here

But first Yahoo (YHOO, Fortune 500), with new CEO Marissa Mayer at the helm, will be in the spotlight when it reports after the bell Monday.

Analysts at S&P Capital IQ predict third-quarter earnings for companies in the S&P 500 will grow by just 0.04% overall this quarter, the worst since the third quarter of 2009.

Meanwhile, also on the corporate front, shares of DISH Network (DISH, Fortune 500) rose after the company reached an agreement with Voom HD Holdings, which owns Cablevision and AMC Networks, on Sunday. DISH agreed to pay $700 million in cash to settle a dispute over wireless multichannel video distribution and data service licenses.

BP (BP) shares fell after the oil giant said Monday it was in "advanced discussions" on a deal that would result in the sale of 50% of its Russia-based assets to Rosneft, a state-owned oil and gas company.

Ancestry.com (ACOM) shares surged after the genealogy website announced plans to be taken over by an investor group led by private equity firm Permira. The cash transaction values Ancestry.com at $1.6 billion, or $32 per share.

Halcón Resources (HK) shares jumped after the company announced a $1.4 billion deal with Petro-Hunt to develop a stake in North Dakota's gas-rich Bakken and Three Forks region.

Fear & Greed Index

World Markets: European stocks were lower in afternoon trading. Britain's FTSE 100 fell 0.3%, the DAX in Germany slipped 0.7%, and France's CAC 40 lost 0.7%.

Asian markets closed higher. The Shanghai Composite rose 0.2%, the Hang Seng in Hong Kong advanced 0.7%, and Japan's Nikkei gained 0.1%.

Related: China currency plays role in U.S. politics

Currencies and commodities: The dollar fell against the euro and the British pound, but edged higher against the Japanese yen.

Oil for December delivery fell 47 cents to $89.97 a barrel.

Gold futures for December delivery gained $2.30 to $1,726.30 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury edged lower, pushing the yield up to 1.80% from 1.77% late Friday. To top of page

First Published: October 22, 2012: 9:42 AM ET


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