Stocks were unable to hold onto early gains as investors reacted to lackluster earnings news and a pullback in consumer sentiment measured by the Conference Board. Jeanne Yurman reports.
Apple reported a third straight quarterly decline in iPhone sales, its top selling product after the bell Tuesday, sending revenue slightly below Wall Street targets. Lackluster earnings news and a disappointing read on consumer confidence sent U.S. stocks lower on the day. Companies from 3M to General Motors gave cautious guidance - a potential weight on stocks says Keith Bliss of Cuttone an Company. (SOUNDBITE) KEITH BLISS, SENIOR VICE PRESIDENT, CUTTONE AND COMPANY (ENGLISH) SAYING: So if they give us unfavorable reports number one and then poor guidance number two, we're going to continue to see this overhang on the market. General Motors quarterly results beat Street estimates but shares closed lower amid fears that slowing U.S. vehicle sales will undercut future profits. Consumer products giant Procter & Gamble's bottom line came in better than expected helped in part by cost-cutting. While Under Armour shares posted steep losses after the company said its growth rate will be slower than expected going forward. A federal judge approved the biggest auto scandal settlement in history. Volkswagen will pay nearly $15 billion for using software that cheated emissions tests. U.S. home prices continued to climb in August. An index from S&P CoreLogic Case Shiller showed more than five percent increase from the same time last year. In Europe, a mixed finish as investors weighed earnings news on both sides of the Atlantic.