Closing Bell: Unmoved by Earnings Reports, Markets Go Flat

APTOPIX Wall Street (Jonathan Corpina, left, talks with fellow trader Dan Ryan on the floor of the New York Stock Exchange, Frid
Richard Drew/AP
U.S. stocks were little changed Monday as investors found little in the latest batch of earnings reports to justify the market's recent rise to an all-time high. Still, the Standard & Poor's 500 index did manage to hit another record high.

The Dow Jones industrial average (^DJI) lost 7 points, or 0.1 percent, to 15,392, the Nasdaq composite index (^IXIC) rose 6 points, 0.2 percent, to 3,920, and the Standard & Poor's 500 index (^GPSC) edged up a fraction of a point, closing at 1,744.66 -- which was still enough to beat its previous high-water mark, set on Friday.

McDonald's (MCD) fell 60 cents, or 0.6 percent, to $94.60 after the world's biggest hamburger chain reported quarterly revenue that fell short of analyst expectations. The Oak Brook, Ill.-based company also warned that global sales at established restaurants would be relatively flat in October and signaled that weakness would continue in the fourth quarter amid stiff competition and a halting economic recovery. McDonald's, which has roughly seven times the sales of Wendy's (WEN) and Burger King Worldwide (BKW) combined, has been slower than its rivals in adapting to changing consumer demands.

Homebuilders slumped after Americans bought fewer previously occupied homes in September than the previous month, held back by higher mortgage rates and rising prices.
The National Association of Realtors said that sales of resold homes fell 1.9 percent last month to a seasonally adjusted annual rate of 5.29 million. KB Home (KBH) fell 3.6 percent to $16.56, while D.R. Horton (DHI) dropped 1.9 percent to $18.66. Hovnanian Enterprises (HOV) lost 3 percent to $5.08 and Ryland Group (RYL) lost 3.1 percent to $38.78

In commodities trading, the price of oil dropped below $100 for the first time since early July after a government report showed that U.S. supplies continue to rise. Benchmark crude for November delivery ended the day at $99.17, down $1.64 for the day. Gold rose $1.30, or 0.1 percent, to $1,315.70 an ounce.

JPMorgan Chase (JPM) reached a tentative $13 billion deal with the U.S. government to settle investigations into bad mortgage loans sold to investors by JPMorgan and the banks it bought during the financial crisis. Shares were down 3 cents at $54.27.

More Stocks in the News:
  • Hasbro (HAS) surged after reporting that its net income rose 17 percent as sales increased. Its adjusted results and revenue topped analysts' estimates. The stock climbed $2.48, or 5.3 percent, to $49.72.
  • Halliburton (HAL) fell $1.81, or 3.5 percent to $50.66, after third quarter revenue fell below analyst expectations. The energy-services company reported third-quarter net income rose by 17 percent on strong revenue from its international operations, which offset sluggish growth in North America.
  • Goodyear Tire & Rubber (GT) slipped 6.7 percent to $21.12 after Deutsche Bank (DB) downgraded its rating on Goodyear to "Hold" from "Buy" and lowered its target price on the stock to $26 from $29 based on concerns about margins over the next few years.
  • Tellabs (TLAB) rose 4.7 percent to $2.46 after the communications equipment maker agreed to be acquired for $891 million by investment firm Marlin Equity Partners.
  • VF Corp. (VFC) rose 3.4 percent to $211.25 after its earnings beat analyst expectations.
  • Gannett (GCI), the media company that owns USA Today, fell 2.2 percent to $26.90 after the company reported lower earnings and revenue for the third quarter.
  • Osiris Therapeutics (OSIR) plunged 17 percent to $14.51 after the company said the Food and Drug Administration will treat its wound-care product Grafix as a drug. Osiris had maintained that it didn't need FDA approval for its products because they are derived from human cells.
  • Dean Foods (DF) rose 0.8 percent to $18.42 after a BMO Capital Markets analyst raised his rating on the stock to "Outperform" from "Market Perform" and boosted his target price for the dairy company's shares to $23 from $22.
What to Watch Tuesday:
  • The Labor Department releases U.S. job market data for September at 8:30 a.m. Eastern time. (The report, previously due Oct. 4, was delayed because of the partial government shutdown.)
These major companies are scheduled to release quarterly results:
  • Amgen (AMGN)
  • Coach (COH)
  • Delta Air Lines (DAL)
  • DuPont (DD)
  • Harley-Davidson (HOG)
  • Kimberly-Clark (KMB)
  • Lockheed Martin (LMT)
  • Panera Bread (PNRA)
  • Reynolds American (RAI)
  • Travelers (TRV)
  • Whirlpool (WHR)
-Compiled from staff and wire reports.

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From what I can tell the statistians are playing a shell game with the employment and workforce data .You just can't eliminate 50,000 or more people so you can claim a lower unemployment rate in New Jersey.

October 21 2013 at 9:44 PM Report abuse rate up rate down Reply

In January 2013 the NJ Workforce was 4,647,700
In August 2013 the NJ Workforce dropped to 4,598,000. What happens when the missing job seekers come back? Add that 45,000 + difference to the supposedly 391,700 unemployed plus the new entrants/ graduates to the job market then tell me how many people in NJ need jobs!

October 21 2013 at 9:34 PM Report abuse rate up rate down Reply

Folks more people were working in New Jersey in 2005 ( 4,207,700) than the last report in August 2013 ( 4,206,600).

Employment peaked in NJ in 2007 ( 4,264,600). Unemployment was at 191,700.
Now figure what happens when the hidden new entrants in to the workforce meet up with the current NJ unemployed 391,700.

If you can't see the train in the tunnel coming for you then you probably won't see this disaster now.

October 21 2013 at 9:08 PM Report abuse rate up rate down Reply
1 reply to Iselin007's comment

I want to see the politicians in NJ explain how their going create jobs now because it isn't 2005 anymore it's 2013. After the peak employment in NJ at 4,264,600 in 2007 it's been 6 years of people becoming working age .

Watch the workforce totals will drop because they can't get the unemployment rate down truthfully.

October 21 2013 at 9:21 PM Report abuse rate up rate down Reply

When people begin trying to pay for the healthcare they can't afford with the few dollars they have the money will be taken from other spending resulting on a decline in retail excetra. The brains should of created some real jobs before holding people upside down and shaking them.

October 21 2013 at 8:50 PM Report abuse rate up rate down Reply

If the only way they can get the unemployment rate down is by not counting people in the workforce you can kiss you investments good bye.

October 21 2013 at 8:40 PM Report abuse rate up rate down Reply

Explain to me how the BLS's own data doesn't clearly show a disaster in the making.

How stubborn can the Labor Department be? I think when the mud hits the fan it will be too late to point fingers. Meanwhile food stamp demand increases while the politicians argue and accomplish nothing.

October 21 2013 at 8:28 PM Report abuse rate up rate down Reply

It's not funny any more the trade deals have to go. Were over 90 million not in the workforce. At the rate were going in less than 5 years we will have over 100 million not in the workforce an that doesn't count all the undocumented that have avoided the census!

October 21 2013 at 8:06 PM Report abuse rate up rate down Reply
1 reply to Iselin007's comment

I guess all those 20 hour part time minimum wage jobs are going pay for health care of all the unemployed and people not in the workforce!

Guess what right now 11.3 million unemployed plus 90 million + not in the workforce = 101.3 million not in the workforce. Guess whos coming to dinner?

October 21 2013 at 8:12 PM Report abuse rate up rate down Reply

Markets may look flat now but behold the coming dip. Not in the workforce of over 90 million.

It's not the amount of people retiring. In 2007 not in the work force was less than 78 million.

More than 2 million are leaving the workforce mostly I figure the because the BLS doesn't want to count them as it would raise the U-3 Unemployment rate to record highs.

October 21 2013 at 7:50 PM Report abuse rate up rate down Reply

What a bargain, American tax payers spent 400 million on a website for Obamacare that doesn't work. I can't wait to see the rest this fiasco.
Obamacare raises taxes on all Americans. Americans are being scammed under this administration, and the liberal media, cheers them on. Who's in your wallet ?

October 21 2013 at 7:06 PM Report abuse rate up rate down Reply
1 reply to coochiescooter's comment


October 22 2013 at 5:49 AM Report abuse rate up rate down Reply

The economy is stagnant, unemployment realistically in the teens, and the majority of people feel the country is headed in the wrong direction. Maybe if we had a plan to cut spending, lower our $17 trillion debt, got rid of obamacare tax and remove government regulations things would get better. Face it, Obamanomics simply doesn't and won't work!

October 21 2013 at 6:34 PM Report abuse +2 rate up rate down Reply
1 reply to jrb359's comment

You can't pay for healthcare if people can stay on their parent's plan until they turn 27. What happens when they turn 27 an there still isn't any good jobs because of the trade deals and H1B Visas? Who pays then? Anyone between 27 and 49 will be screwed! Outsourcing jobs has ruined the lives of many baby boomers who lost their good jobs in the 2000/2001 tech bubble and recession. Now the bank/housing blow out and outsourcing is driving the final nail!

October 21 2013 at 7:59 PM Report abuse +3 rate up rate down Reply