Weak Earnings, Ukraine Tensions Weigh on Stocks

U.S. equities slip to start the week; Six Flags sinks

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Wall Street
AP/Richard Drew
By MATTHEW CRAFT

NEW YORK -- The stock market started the week with a slight loss on Monday as investors weighed a mixed batch of corporate earnings against mounting political turmoil.

European leaders called for imposing tougher sanctions on Russia for its backing of separatists accused of shooting down a Malaysia Airways passenger plane in Ukraine last week. The European Union's foreign ministers will meet Tuesday to discuss their next steps.

In Washington, President Barack Obama demanded that international investigators get full access to the crash site and said the separatists had blocked investigators.

"It looks like we hit a speed bump," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago. "Earnings are coming through quite nicely so far, but geopolitics trump earnings today."

The Standard & Poor's 500 index (^GSPC) fell 4.59 points, or 0.2 percent, to close at 1,973.63. Seven of the 10 industry groups fell, led by retailers and other consumer-discretionary companies.

The Dow Jones industrial average (^DJI) fell 48.45 points, or 0.3 percent, to 17,051.73, while the Nasdaq composite (^IXIC) lost 7.44 points, or 0.2 percent, to 4,424.70.

European markets ended lower. Germany's DAX dropped 1.1 percent while France's CAC-40 lost 0.7 percent. Britain's FTSE 100 slipped 0.3 percent.

A few well-known companies turned in results that fell short of estimates on Monday. The toy maker Hasbro (HAS) reported second-quarter earnings and revenue that came in below analysts' targets. Rising sales of My Little Pony, Transformers and other toys weren't enough to stem a decline in sales of games such as Twister. Hasbro's stock sank $1.43, or 2.7 percent, to $51.78.

Six Flags Entertainment (SIX) posted higher profits and sales in the second quarter, but the theme-park operator's revenue came up short of what analysts had expected, partially a result of sluggish attendance. Six Flags slumped $1.69, or 4.1 percent, to $39.31.

Despite the dour news, the second-quarter earnings season is off to a strong start: Of the 88 companies that have reported results so far, 58 have beaten analysts' estimates.

Nearly a third of the companies in the S&P 500 index will hand in their quarterly results this week, including such heavyweights as Apple (AAPL) on Tuesday, Boeing (BA) on Wednesday and Amazon (AMZN) on Thursday.

In other trading on Monday, benchmark U.S. crude oil rose $1.46 to $104.59 a barrel on the New York Mercantile Exchange. In the market for U.S. government bonds, the yield on the 10-year Treasury note slipped to 2.47 percent from 2.48 percent late Friday.

Among other companies in the news, Yum Brands (YUM) fell $3.29, or 4.3 percent, to $74.13 amid a new food-safety scare in China. The operator of KFC and Pizza Hut restaurants said its stores in China stopped buying products from a Shanghai supplier, while local officials investigate allegations that the supplier repackaged old beef and chicken and stamped new expiration dates on them.

What to Watch Tuesday:
  • The Labor Department releases its Consumer Price Index for June at 8:30 a.m. Eastern time.
  • The National Association of Realtors releases existing home sales for June at 10 a.m.
These major companies are scheduled to release quarterly financial statements:
  • Apple (AAPL)
  • Broadcom (BRCM)
  • CIT Group (CIT)
  • Coca-Cola (KO)
  • Comcast (CMCSA) (CMCSK)
  • Credit Suisse (CS)
  • Discover Financial Services (DFS)
  • Domino's Pizza (DPZ)
  • Dupont (DD)
  • Gannett (GCI)
  • Harley-Davidson (HOG)
  • Ingersoll-Rand (IR)
  • Jupiter Networks (JNPR)
  • Kimberly-Clark (KMB)
  • Lockheed Martin (LMT)
  • McDonald's (MCD)
  • Mead Johnson Nutrition (MJN)
  • Microsoft (MSFT)
  • TD Ameritrade Holding (AMTD)
  • Travelers Cos. (TRV)
  • United Technologies (UTX)
  • Verizon Communications (VZ)
  • Vmware (VMW)

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socioeconomist1

You poor people should feel lucky.... You don't have to move your ATV to get your boat out of the garage.... You aren't constantly filling up gas tanks for your motorcycles, ATVs, boats, cars, trucks, and RVs...Plus, keeping up with all of the regular maintenance. I swear I have to get an oil change on something at least once a week. You don't have a stack of bills and income to maintain. Even with quickbooks, it takes forever.. You don't have to risk your own money in the stock markets to feel that stress.. You don't have a couple of kids and a wife who think your life savings is a giant stack of cash to go shopping with and expect it.. You should see my wife when I give her $5000 to go shopping with and she looks at me and says "Is this all?"... I can remember when $5000 would buy a nice car, and for her it falls short on a day of shopping..

No you poor people have it made.... just sit around and complain on the internet while the USDA, HUD, and the Salvation Army pay for you to sit around doing drugs and achieve nothing with your lives. You just don't know it..

The more you have, the more you have to keep up with.. Being wealthy alone is a 40 hour work week. You should be thankful that you don't have a pot to piss in and will never amount to anything..

July 22 2014 at 4:46 AM Report abuse +1 rate up rate down Reply
1 reply to socioeconomist1's comment
socioeconomist1

I didn't even mention mowing the grass on a big yard full of landscaping, keeping up with the garden, trimming the fruit trees.... blasting pesticides all over everything so the Japanese beetles don't kill anything... I have a daughter that likes to change her clothes about 5 times a day for no other reason than she likes the smell of newly washed clothing, so the laundry machine never stops. Then the ph in the pool.. It just never ends.

Seriously... sit in your crappy little apartment or wherever you people exist and enjoy the fact that you do not have money. The world is doing you a favor by not complicating your lives with wealth. So just be happy...

I mean yeah I get it... You go to a nice restaurant 3 or 4 times a week and can't afford a to leave a 30% tip, so you start getting crappy service because you are a deadbeat when it comes to tipping. Then you see a person like me that has 3 or 4 servers stopping by to say hi because I always leave a 30% tip and your glass remains empty... I get it. You know you are on the bottom of society and it hurts your little feelings. That is what you get for being raised by a woman instead of a man. Insecure and sensitive... boo hoo. Life isn't perfect.

But, maybe this will help.... When the wealthy are driving around in their cars and see a poor person walking down the street talking on their cell phone, we point to them and say, look kids, if you don't get good grades that is what you will wind up looking like.

So, while you poor people may not understand what a invaluable service you provide society in being the role models that make everyone's kids try harder in life.. You should understand that you are providing a great service by offering incentive to others to work hard and dedicate themselves to an education or else they will wind up poor just like you..

See how that works ?.... I actually know a few politicians, and when they are sure the cameras aren't rolling and open up and tell the truth... That is exactly what they say when a person asks why they don't do more to help the poor. According to politicians, you poor people will just kill yourselves with drugs and alcohol if you got paid more. And like I said, you set an example to future workers by displaying how life will suck if those kids are lazy and stupid. Every time I see a poor bast**d waiting for a bus, or walking down the street in their fast food uniform, or whatever... I take that opportunity to scare my kids by saying "that could be you someday"...

It's funny though... the poor are out there helping me teach my kids not to screw up life, and they should get paid for that. But, if they got paid, then they wouldn't be the poster child of a screwed up life. Quite the catch 22.

But, that is why the government gives nations like Egypt $1 billion dollars and could care less if the poor in America have money for their bills. I say live under a bridge and beat housing costs if you make less than $75,000 a year.

July 22 2014 at 5:07 AM Report abuse +1 rate up rate down Reply
socioeconomist1

Always fun to see the unemployed cry babies in here trolling about how no one hands them any free money.... boo hoo.... economics of the people, blau blau blau

July 22 2014 at 4:38 AM Report abuse +1 rate up rate down Reply
Iselin007

Some of you are just too hyped on stocks to even see the real economy of the people.

July 21 2014 at 11:44 PM Report abuse +1 rate up rate down Reply
1 reply to Iselin007's comment
socioeconomist1

some of us don't care about the economy of the people..

July 22 2014 at 4:47 AM Report abuse rate up rate down Reply
Charlie Jackson

Overall market is strong and Ukraine and Middle East conflicts are just concerns and they have been there for sometime and taken into account

July 21 2014 at 10:53 PM Report abuse +1 rate up rate down Reply
Iselin007

Who's economy is showing strength for the fifth month? People are looking for their personal economy to contain good jobs with 40 hours, overtime, and benefits or this economy is going to exclude most of us.

July 21 2014 at 8:24 PM Report abuse +1 rate up rate down Reply
Iselin007

I saw Dan Shaeffer give his Bear prediction on Fox Business. The prediction was the same one Dan supposedly had been offering before saying the Dow Jones is going to drop to 5000.

July 21 2014 at 7:58 PM Report abuse -1 rate up rate down Reply
1 reply to Iselin007's comment
socioeconomist1

never watch fox news.... that is a propaganda outlet in every way. Don't watch CNN either... same thing just liberal crap.

July 22 2014 at 4:48 AM Report abuse -1 rate up rate down Reply
socioeconomist1

There is always a war somewhere on this planet.... truth is, the markets will rise one day and fall the next for the next few years till the DOW tops off around 18,000 to 19,000... then we will have another recession.

July 21 2014 at 5:55 PM Report abuse rate up rate down Reply
1 reply to socioeconomist1's comment
Iselin007

The average American will be in a recession regardless of the level of the stock market because of the shifting of investments. Most Americans aren't seeing the benefits of a climbing market.

July 21 2014 at 8:08 PM Report abuse -1 rate up rate down Reply
1 reply to Iselin007's comment
SPQR

If you have a 401 K and retiring you will probably see the benefits

July 22 2014 at 12:57 AM Report abuse -1 rate up rate down