TOP STORIES
U.S. STOCKS TUMBLE
U.S. stocks tumbled as investor concerns about disappointing
results at blue-chip companies like Microsoft and Caterpillar
sparked concerns about the strong dollar's drag on earnings growth.
The Dow industrials plummeted 300 points.
DURABLE GOODS ORDERS FALL SHARPLY
Orders for durable goods fell a seasonally adjusted 3.4% in
December from November. Economists surveyed by The Wall Street
Journal had expected overall orders to climb 0.3%.
P&G'S REVENUE DECLINES ON CURRENCY HITS
The consumer products giant called the widespread weakening of
foreign currencies against the U.S. dollar unprecedented and said
it led to declines in all of its main business segments. Shares
fell 3%.
CATERPILLAR SLIPS OFF ITS UPWARD PROFIT PATH AGAIN
Caterpillar reported a 25% plunge in 4Q profit and forecast a
22% drop in earnings per share for 2015 as turbulent economic
forces caused the maker of heavy equipment to lose its traction for
the second time in the past three years. Shares slid 7%.
U.S. NEW-HOME SALES RISE SHARPLY
Sales of newly built, single-family homes increased 11.6% in
December from a month earlier to a seasonally adjusted annual rate
of 481,000. Economists expected sales to reach a pace of
450,000.
BLIZZARD HITS NORTHEAST WITHOUT FULL FORCE
A powerful winter storm continued to lash the Northeast, dumping
expected record snowfalls on some parts of the region but falling
short of dire predictions of a widespread onslaught and crippling
power failures.
PFIZER HIT BY STRONGER DOLLAR, PATENT LOSSES
Pfizer issued downbeat guidance for the new year, citing the
stronger U.S. dollar and recent drug-patent losses, and reported a
decline in sales in the most recent period. The drug maker's 4Q
results beat expectations, however.
AMERICAN AIRLINES LIFTED BY LOWER FUEL PRICES
American Airlines, flush from buoyant fourth-quarter and
full-year profits and looking ahead to even better performance in
2015, won't alter its strategy as a result of sharply lower oil
prices, Chief Executive Doug Parker said.
U.S. CONSUMER CONFIDENCE JUMPS IN JANUARY
The Conference Board, a private research group, said its index
of consumer confidence jumped to 102.9 in January from a revised
93.1 in December, first reported as 92.6. The index is at its
highest since August 2007.
DUPONT WARNS OF CURRENCY HEADWINDS
DuPont gave a disappointing outlook for 2015, warning its profit
would take a significant hit from the strengthening U.S. dollar and
weakness in its agricultural-seed business. Shares down 3%.
OIL PRICES WAVER AFTER OPEC COMMENT
Oil prices fluctuated between gains and losses as market
participants weighed relatively bullish comments by the head of
OPEC against weak fundamentals.
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Earnings Preview
BOEING EXPECTED TO POST PROFIT GROWTH
Boeing is scheduled to announce its fourth-quarter and full-year
2014 earnings before the market opens on Wednesday. Analysts expect
net profit for the quarter of $1.84 a share.
Heard on the Street
EUROPEAN BANKS WEIGH-UP GOVERNMENT BOND PROBLEM
The Basel Committee has been checking Europe's homework and it
isn't pleased. It has told the Continent its banks need more
capital to back sovereign risks, just as Europe is writing to its
banks to say they need more capital for other risks.