Apple’s plunge overshadows bank rally

Stocks were mixed on Wednesday as investors focused on corporate earnings reports.

The Dow Jones Industrial Average gained 58.73 points to 12,676.05, snapping a three-session losing streak. The Nasdaq Composite Index fell 8.75 points to 2,854.24, and the S&P 500 Stock Index was down fractionally at 1,337.89.

The Dow was supported by positive performances from Caterpillar Inc. (NYSE: CAT) and Boeing Co. (NYSE: BA), which both reported strong quarterly earnings. The Nasdaq was weighed down by Apple Inc. (Nasdaq: AAPL), which fell $25.95 to $574.97 after sales and revenues disappointed.

Gold gained $31.90 to $1,608.10 an ounce in response to positive comments suggesting another plan is being proposed to deal with the eurozone's debt crisis. Oil gained 47 cents to $88.97 a barrel.

A gauge of homebuilders in S&P indexes slumped 3.2 percent. Netflix Inc. (Nasdaq: NFLX), the largest video-subscription service, plunged 25 percent after raising doubts on user growth. JPMorgan Chase & Co. (NYSE: JPM) and Citigroup Inc. (NYSE: C) rose at least 1.2 percent.

“There’s a huge amount of uncertainty out there,” said Rob McIver, co-portfolio manager at Jensen Investment Management in Lake Oswego, Ore. His firm manages $5.5 billion. “It’s a somewhat anemic U.S. recovery. And you see that starting to be reflected in corporate results. It’s certainly a difficult environment for investors.”

The S&P 500 fell as a report showed that demand for new U.S. homes unexpectedly dropped in June from a two-year high. Sales at only 40 percent of the 201 S&P 500 companies that reported second-quarter results have beaten analysts’ estimates, according to data compiled by Bloomberg. Earnings at 71 percent of companies beat forecasts, the data showed.

“The earnings news is mixed,” said Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Va., which oversees about $47 billion. “Still, companies have managed expectations and, for the most part, the numbers came in ahead of forecasts. We’re also seeing a discussion on the Fed potentially acting amid an economic slowdown.”

International Game Technology (NYSE: IGT) dropped 20 percent to $11.76. The world’s biggest maker of slot machines reported profit and sales that trailed analysts’ forecasts.

TripAdvisor Inc. (Nasdaq: TRIP) sank 17 percent to $36.18. The online travel recommendation service spun off from Expedia Inc. (Nasdaq: EXPE) reported second-quarter revenue that missed analysts’ estimates.

RadioShack Corp. (NYSE: RSH) tumbled 29 percent to $2.60. The electronics chain suspended its dividend and posted an unexpected second-quarter loss as costs soared.

WellPoint Inc. (NYSE: WLP) lost 12 percent to $54.01. The health plan cut its forecast after quarterly profit missed analyst estimates because of higher medical costs.

ConocoPhillips (NYSE: COP) lost 2.6 percent to $53.24. The company said second-quarter profit fell 33 percent for the newly independent oil and natural gas producer after losing income from its refining segment, which was spun off April 30.

Corning Inc. (NYSE: GLW) retreated 7.7 percent to $11.14. The company reported a 39 percent drop in second-quarter earnings amid price declines for its LCD screens.

Nasdaq OMX Group Inc. (Nasdaq: NDAQ) jumped 4.8 percent, the most since November, to $22.87. The equity exchange operator reported earnings that beat analyst estimates. The company lowered its 2012 expense forecast.

Symantec Corp. (Nasdaq: SYMC) soared 14 percent to $14.96. The world’s largest maker of computer security software ousted Chief Executive Officer Enrique Salem and passed the reins to Chairman Steve Bennett, saying the company wasn’t performing well enough.

Altera Corp. (Nasdaq: ALTR) surged 12 percent to $34.41. The maker of programmable chips forecast sales that may beat analysts’ estimates this quarter on stronger demand for wireless- communications gear.