Late Bounce Gives U.S. Stocks Slight Lift

Category: Markets / Finance / Feb 06, 2013 7:14PM EDT
U.S. stocks ended mostly flat on Wednesday (February 6), taking another pause in the recent rally that has driven the S&P 500 to five-year highs, as transportation and technology shares lost ground. Transportation stocks were among the worst performers. Shares of CH Robinson Worldwide fell 9.7 percent to $60.50 (USD) and the stock was the biggest percentage loser on the Nasdaq 100 after the freight transport company posted a lower-than-expected adjusted quarterly profit. Without a strong catalyst, the market could struggle to continue its rally, analysts said. The benchmark S&P 500 index has advanced 6 percent this year, reaching its highest since December 2007, while the Dow Jones industrial average has risen above 14,000 recently. Shares of Time Warner Inc jumped 4.1 percent to $52.01 after reporting higher fourth-quarter profit that beat Wall Street estimates, as growth in its cable networks offset declines in film, TV entertainment and publishing units. The Dow Jones industrial average was up 7.22 points, or 0.05 percent, at 13,986.52. The Standard & Poor's 500 Index was up 0.83 points, or 0.05 percent, at 1,512.12. The Nasdaq Composite Index was down 3.10 points, or 0.10 percent, at 3,168.48. shares, down 1.7 percent at $262.22, led the decline on the Nasdaq. Also causing some strain on the market, investors have been speculating about leadership changes in Spain and Italy and watching for comments from European leaders, analysts said. European Central Bank policymakers are due to meet Thursday. According to Thomson Reuters data, of 301 companies in the S&P 500 that have reported earnings, 68.1 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters. In terms of revenue, 65.8 percent of companies have topped forecasts. Fourth-quarter earnings for S&P 500 companies are estimated to have risen 4.7 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season. Walt Disney Co's stock was up 0.4 percent at $54.52, after the company beat estimates for quarterly adjusted earnings and gave an optimistic outlook for the next few quarters. (Video Source: Reuters)