Weak earnings drag stocks lower; Under Armour dives

Mark Lennihan / Associated Press
U.S. stock indexes were falling Tuesday morning after companies including UPS and Under Armour posted weak fourth-quarter results. Investors moved money into bonds and stocks that pay large dividends, such as utilities. Stocks took losses a day earlier after President Trump issued an order banning entry to the U.S. from seven Muslim-majority countries.
KEEPING SCORE: The Dow Jones industrial average fell 127 points, or 0.6%, to 19,845 as of 10 a.m. EST. The Standard & Poor’s 500 index lost 10 points, or 0.5%, to 2,270. The Nasdaq composite fell 29 points, or 0.5%, to 5,584. The Russell 2000 index of small-company stocks declined 4 points, or 0.3%, to 1,348.
SHOELACES UNTIED: Athletic apparel maker Under Armour was plunging after investors were disappointed with its fourth-quarter report, which included higher expenses. Under Armour’s forecast for the current year also failed to excite investors, and the company said its chief financial officer is leaving. The stock tumbled 25% to $18.83. It dropped 30% last year and is now trading at its lowest price since mid-2013. Shares of rival Nike fell 2.5% to $51.76.
RETURN TO SENDER: Package and delivery company UPS sank after it forecast an annual profit that was far smaller than analysts had expected. United Parcel Service expects to earn no more than $6.10 a share this year while FactSet says experts expected $6.15 per share on average. UPS shares fell 6.3% to $109.64, and FedEx fell 2.3% to $188.85. That helped pull industrial companies lower.
EASED OFF THE THROTTLE: Harley-Davidson said it shipped fewer motorcycles in the fourth quarter, and its profit and sales disappointed Wall Street. The company also said it expects shipments to be flat or down this year. Its stock shed 3.6% to $55.83.
DRUG RULING DINGS TEVA: Teva Pharmaceutical Industries slumped after a court ruled that four patents protecting its multiple sclerosis drug Copaxone are not valid. Teva said it will appeal the ruling, which could help competitor Mylan launch a lower-priced version of a key product for Teva. Teva fell 6.3% to $32.34, and Mylan rose 1.4% to $36.87.
POWER OF SCIENCE: Scientific instrument and lab supply company Thermo Fisher Scientific climbed 4% to $149.05 after its net income and revenue in the fourth quarter beat analyst estimates.
ENERGY: U.S. crude oil rose 51 cents, or 1%, to $53.15 a barrel in New York. Brent crude, the benchmark for international oil prices, added 63 cents, or 1.1%, to $55.95 a barrel in London.
BONDS: Bond prices inched higher. The yield on the 10-year Treasury note fell to 2.47%, from 2.49%.
CURRENCIES: The dollar fell to 112.78 yen, from 113.67 yen. The euro rose to $1.0770, from $1.0695.
OVERSEAS: The FTSE 100 index in Britain rose 0.4%, and the CAC 40 of France rose 0.2%. Germany’s DAX slipped 0.1%. Japan’s benchmark Nikkei 225 slid 1.7% after the Bank of Japan raised its growth estimates, which made the yen stronger. That hurts Japanese exporters, as it makes their goods more expensive in other markets. The South Korean Kospi lost 0.8%. Markets in Hong Kong, Markets in China and Taiwan were closed for Lunar New Year holidays.
Article by Associated Press.  ​