Closing Bell: Downbeat Earnings End 8-Day Rally for S&P 500

new york stock exchange traders wall street earnings economic news
Seth Wenig/AP
A string of lackluster earnings reports from companies including Coca-Cola and retail brokerage Charles Schwab pushed stocks lower Tuesday, as investors awaited comments from Federal Reserve Chairman Ben Bernanke on Wednesday.

The Dow Jones industrial average (^DJI) subtracted 32 points, or 0.2 percent to close at 15,452, while the S&P 500 (^GPSC) surrendered 6.25 points, or 0.4 percent, to 1,676, ending its eight-day string of records. The Nasdaq (^IXIC) dropped 9 points, or 0.25 percent, to 3,599.

Shares of Coca-Cola (KO) dropped 81 cents, or 2 percent, to $40.21 after the company reported that its second-quarter profit fell 4 percent to $2.68 billion, or 50 cents a share, from $2.79 billion, or 61 cents a share, a year earlier. Weaker demand for soft drinks pushed revenues down 3 percent to $12.75 billion. Charles Schwab (SCHW) fell 72 cents, or 3.3 percent, to $21 after its earnings came in short of analyst expectations as expenses rose and its interest margins fell.

A key measure of homebuilder sentiment rose to its highest level in more than seven years this month. The National Association of Home Builders/Wells Fargo builder sentiment index climbed to 57 in July from 51 in June -- the third straight monthly gain.

In other economic news, consumer prices surged in June, largely on big increases in gasoline costs. The Labor Department said its consumer price index rose 0.5 percent, the largest increase since February. But underlying inflation pressure remained benign against the backdrop of lukewarm domestic demand.

Stocks got a boost last week when Fed Chairman Ben Bernanke said the central bank would not ease its stimulus before the economy was ready. Investors will be listening to comments from Bernanke again this week for more clues about the central bank's outlook for the economy. The Fed chairman will give his semi-annual testimony to Congress on Wednesday.

Among other stocks in the news:
  • Cintas Corp. (CTAS), a supplier of uniforms, fell 73 cents, or 1.5 percent, to $47.15. The company said late Monday that its fiscal fourth-quarter net income rose 9 percent, but it gave a tepid outlook for the current year due in part to the health care overhaul law.
  • Heidrick & Struggles International (HSII) dropped $3.07, or 17 percent, to $14.79 after the executive search firm said it is no longer pursuing a sale of its business and that its CEO is stepping down.
  • Goldman Sachs (GS) dropped $2.74, or 1.7 percent, to $160.26 as investors focused on the outlook for the bank's regulatory environment, even after the bank said its profit doubled in the second quarter.
  • Ford Motor (F) fell 53 cents, or 3 percent, to $16.60 after Goldman Sachs removed the carmaker from its "conviction buy list" because of a lack of catalysts to push the company's stock higher in the near future. Ford has gained 27 percent this year.
  • Marathon Petroleum (MPC), a fuel refiner, fell nearly 4.4 percent to $69.92 after the company forecast weak earnings and said its business was being hurt by renewable fuels laws.
  • Apple (AAPL) reportedly is in early negotiations to buy Israel-based PrimeSense, a developer of chips that enable 3-D machine vision, for $280 million, according to Israel's Calcalist website. The Hebrew-language news source says a delegation of Apple engineering executives visited PrimeSense in early July. Apple added $2.83, or 0.66 percent, to $430.27 in Tuesday trading.
What to watch Wednesday:
  • The Commerce Department releases housing starts for June at 8:30 a.m. Eastern Time.
  • The Federal Reserve releases its latest Beige Book survey of economic conditions at 2 p.m.
The following companies issue quarterly financial results:
  • American Express Co. (AXP)
  • Bank of America Corp. (BAC)
  • EBay Inc. (EBAY)
  • Intel Corp. (INTC)
  • IBM (IBM)
  • Mattel Inc. (MAT)
-Compiled from staff and wire reports.

Ways to Make Money on the Side
See Gallery
Closing Bell: Downbeat Earnings End 8-Day Rally for S&P 500
PA for a day gives users the opportunity to hire a temporary personal assistant to do office work, run errands, walk pets, or do dozens of other jobs. While the website is great for harried professionals, it may be even better for workers looking to bring home a paycheck on a flexible schedule. If you're looking for a good-paying, short-term job where you can set your own schedule, why not drop them a line?
Are you good at putting together IKEA furniture? Do you have time to pick up a Craigslist item? Are you willing to go grocery shopping for someone else? If you answered yes to any of these questions, maybe you should think about joining TaskRabbit, a website where you can submit bids to do odd jobs. Depending on the task -- and on the area where you live -- you can make more than $40 per job.
Can you do a good celebrity voice imitation? Are you willing to film yourself wearing a hot dog suit and singing "Happy Birthday"? Are you a good artist? On, "the world's largest marketplace for small services," you can transform your cool skills into cool cash. Basically, you create a listing with the skill that you are willing to offer, set a price (usually $5 and up), and work on finding clients.

At this point, Etsy is hardly a moneymaking secret, but most people don't realize how easy it is to turn the do-it-yourself marketplace into a thriving business. As our earlier article on Fifty Shades of Grey demonstrated, the site makes it easy for an enterprising DIY-er to piggyback onto the latest pop culture trend.

Photo: Etsy

If you've ever wanted the joy of hanging out with a dog, but didn't want to sign on for the long-term commitment, you might consider joining Dog Vacay. The website pairs dog owners with dog lovers who are willing to babysit them for a short term. Prices start at $15 per night, but "hosts" can set their own rates. You're also allowed to take care of up to three dogs at a time, which means that -- if you're looking for a way to make some money on the side and don't mind sharing your couch with a furry friend -- this might be a great way to get some extra bucks.
Read Full Story
  • DJI28135.383.330.01%
  • NIKKEI 22524023.10598.292.55%
    Hang Seng27687.76693.622.57%
  • USD (PER EUR)1.110.00000.00%
    USD (PER CHF)1.020.00050.05%
    JPY (PER USD)109.410.00000.00%
    GBP (PER USD)1.330.00000.00%