US stocks closed lower after a late stage sell off that saw the Dow turn negative despite some positive earnings outlooks which boosted optimism about corporate profits. Commodity stocks were higher on improving metal and oil prices.
The Dow Jones industrial average fell 92 points to 9,949. The S&P500 Index lost 10 points to 1,081 and the NASDAQ dropped 13 points to 2,151.
In economic news.The Labor Department showed that unemployment rates in 23 U.S. states increased while 19 states posted a decrease in unemployment in September.
The Federal Reserve’s Beige Book showed that the economy has shown signs of stabilizing or modestly improving in recent weeks as the Fed said that reports of gains in economic activity in regional areas generally outnumber declines.
In company news: Boeing (NYSE:BA) shares declined 2.43% to $50.63 as the aerospace builder reported an earnings-per-share loss compared to a profit the year before because of expenses from its delayed 787 Dreamliner plane development. Boeing also cut its 2009 earnings outlook said revenue was higher than a year ago but the revenue and earnings results were short of analysts' estimates.
Morgan Stanley (NYSE:MS) shares jumped 4.8% to $34.08 as it reported a first quarterly profit that was higher than expectations before the opening bell. The result was boosted by strong fixed-income sales and trading revenue and although earnings and revenue fell compared to a year ago, they still came in higher than expected, boosting shares. U.S. Bancorp (NYSE:USB) shares also jumped as results topped estimates thanks to strong mortgage banking revenue.
The third bank of the day to report earnings was Wells Fargo (NYSE:WFC) and shares lost 5.12% to $28.90 as it reported profit of $3.2 billion in its latest quarter as strength in its mortgage-lending business and other units softened the impact of large bad loan losses.
Wal-Mart (NYSE:WMT) shares slid 2.07% to $50.63 after the retailer said it would slash prices at its stored ready for the upcoming holiday shopping season which is expected to be tough.
Checking the NASDAQ Top 100: The best performer was Autodesk which gained 4.75% to $26.93, followed by Apple, after the iPod and iPhone maker posted earnings and sales after Monday's closing bell that were higher than expected and as brokerages lifted their price targets on the stock. Yahoo! was the next best performer as it reported higher quarterly earnings that beat forecasts after the closing bell Tuesday.
Genzyme was the NASDAQ’s worst performing overnight, falling 6.24% to $51.43. Intuitive Surgical and CH Robinson Worldwide also finished lower.
