US stocks fell on Wednesday, led by such industrial companies as Caterpillar, Boeing and 3M as investors worried that the weak euro could hurt the profits of companies that do business in the euro zone. The declines wiped out the Standard & Poor's 500-stock index's gain for the year.
The Dow Jones Industrial Average fell 66.58 points (0.63%) to 10,444.37. The measure is still up 0.16% for the year. Caterpillar was the Dow's worst performer with a drop of $1.75 (2.8%) to $61.44. Boeing fell $1.51 (2.2%) to $66.21, and 3M slipped 95 cents (1.1%) to $82.54.
The Dow's financial stocks rose as the Senate prepared to vote on whether to end the debate on legislation overhauling US financial regulation. After the market closed, the motion to cut off debate fell short of the 60 votes needed. Bank of America ended with a rise of 36 cents (2.3%) to $16.31, while JP Morgan advanced 36 cents (0.9%) to $39.38.
Hewlett-Packard was also strong, with a gain of 21 cents (0.5%) to $47. The company's fiscal second-quarter profit grew 28% on higher worldwide sales and profit growth in its core personal-computer business.
The Nasdaq Composite declined 18.89 (0.82%) to 2,298.37, although it remains in positive territory for 2010 with a year-to-date gain of 1.29%.
The Standard & Poor's 500 fell 5.75 (0.51%) to 1,115.05, and is now essentially flat in 2010. The industrial sector led the S&P 500's declines, while financials rose.
The declines came as investors grew increasingly sceptical that the European Union's nearly US$1tr bailout plan will be enough to contain the damage of Greece's sovereign-debt woes.
Deere rose $1.71 (3%) to $58.87. The farm-equipment giant's fiscal second-quarter earnings rose 16% on strong demand for its large farm machinery. Adjusted earnings, excluding a health-care-related charge, rose even more, smashing analysts' forecasts on a surge in margins. The company also raised its current-year earnings forecast.
American depositary shares of Itau Unibanco Holding SA fell $1.06 (5.5%) to $18.19, after it said Bank of America will sell its entire stake in the Brazilian bank, a deal worth around 8.16bn Brazilian reals (US$4.5bn). Bank of America now holds a 5.36% stake in Itau Unibanco.
Analog Devices climbed $1.17 (4.2%) to $28.77. The semiconductor company's fiscal second-quarter profit tripled on higher sales and margins sparked by a strong rebound in the automotive, industrial and consumer markets.
Hormel Foods dropped $1.10 (2.6%) to $40.68. The food-processing company's fiscal second-quarter earnings fell 3.1% on restructuring and health-care charges although most of its business segments turned in a stronger performance.
Eaton Vance slipped $1.03 (3.1%) to $32.38. The mutual-fund manager's fiscal second-quarter earnings rose 40% on higher assets under management and fees, but the profit missed analysts' expectations.