Wall Street retreated as the technology sector fell on disappointing results from giants including Apple, but major indexes were off earlier lows.
The S&P 500 (INDEXSP:.INX) skidded 0.4 percent to 2,110.16 at 3:44 p.m. in Toronto. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) decreased 0.6 percent to 17,814.16, and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) sank 0.8 percent to 5,164.39.
Of the 102 companies to report earnings through this morning, 70 percent have beaten analyst expectations, above the 63 percent average beat rate since 1994. But only 55 percent have topped revenue forecasts, below the 61 percent average beat rate since 2002.
U.S. companies are expected to post their worst sales decline in nearly six years in the second quarter, in part due to the strong dollar that reduces the value of U.S. companies' overseas income.
MOVERS:
Apple (NASDAQ:AAPL) tumbled 4.5 percent to $125.06. The world’s largest technology company reported iPhone shipments for the fiscal third quarter and revenue forecast for the current period lagged behind analysts’ projections.
Microsoft (NASDAQ:MSFT) retreated 4.2 percent to $45.31. The world’s largest software maker, posted its biggest quarterly loss ever on a write-down tied to its Nokia purchase.
Yahoo (NASDAQ:YHOO) slipped 0.7 percent to $39.44 after forecasting lower-than-expected revenue for the current quarter as it struggles to revive its core online advertising business.
GoPro (NASDAQ:GPRO) rose 0.2 percent to $62.05 after the action camera maker reported a better-than-expected quarterly profit and forecast current-quarter revenue above market estimates, helped by strong sales in Asia.
Coca-Cola (NYSE:KO) slid 1 percent to $40.78 even as the beverage giant said profit jumped 20 percent in its second quarter on higher volume.
Campbell Soup (NYSE:CPB) advanced 1.5 percent to $48.15. The food company raised its full-year guidance, saying planned cost savings had kicked in earlier than expected.
Tupperware Brands (NYSE:T) slid 1.1 percent to $34.20 while DirecTV (NASDAQ:DTV) inched up 0.4 percent to $92.87 after a Wall Street Journal report that regulators are poised to approve their $49 billion merger deal.
Thoratec (NASDAQ:THOR) jumped 10 percent to $63.37 after St. Jude Medical said it plans to buy the heart-device maker for $3.4 billion.
COMMODITIES:
August gold shed 1.1 percent to settle at $1,091.50 an ounce for the Comex session. That was the lowest settlement for a most-active contract since March 24, 2010.
On the New York Mercantile Exchange, West Texas Intermediate crude for September delivery settled at $49.19 a barrel, down 3.3 percent.
OTHER MARKETS:
European stocks lost ground after the prior day’s retreat by Wall Street and as disappointing earnings weighed, while Asian equities closed mostly lower.