Qualcomm lowers guidance, while American Express earnings beat forecasts. Stocks closed out the mid-week session lower. Bobbi Rebell reports.
After the closing bell, better than expected earnings from American Express thanks to cost controls, though revenues did fall short of forecasts. Amex also says, it's going to boost spending to try to get more card members. And Qualcomm says, it's cutting 15 percent of its workforce, and is considering breaking up the company. Apple's drop pulled down the major U.S. indices, and Microsoft piled on. Disappointing earnings results from those tech titans, as well as Yahoo, hurt investor sentiment. At least five brokerages cut their price target on Apple's shares a day after it reported iPhone sales and a quarterly revenue forecast that both fell shy of Wall Street's targets. That revenue outlook resonated in Europe, pulling shares lower there. Microsoft suffered its biggest quarterly loss ever, because it wrote down its Nokia phone business. Bucking the downtrend: debutante Blue Buffalo. Shares of the maker of natural foods for pets rocketed higher on the Nasdaq. Renaissance Capital's principal, Kathleen Smith: SOUNDBITE: KATHLEEN SMITH, PRINCIPAL, RENAISSANCE CAPITAL (ENGLISH) SAYING: "They've done a great job with their brand and distribution. They've basically blanketed all the PetSmart and Petco food stores, dog and cat food stores out there. Their marketing is so strong, I would say, that is why they've developed this leadership position." And Chipotle shares rose after reporting profit that was better-than-expected. A sign of pent-up demand for housing: home resales in June rose to their highest level in almost 8-1/2 years.