While you were sleeping: UPDATED US stocks mixed, Apple slides on outlook

Stocks on Wall Street were mixed amid a disappointing outlook from Apple. Energy stocks fell with the price of oil but Boeing boosted the blue chips.

At the close, the Dow Jones Industrial Average was up 30.06 points, or 0.2%, to 18,199.33. The Nasdaq Composite Index dropped 0.6% to 5250.27 and the Standard & Poor's 500 Index eased 0.2% to 2139.43.

In the Dow gains in Boeing and Nike shares, trading 4.7% and 1.9% higher respectively, offset slides in Apple and Merck shares, down 2.2% and 2.0% respectively.

While Apple's latest quarterly earnings per share exceeded analysts’ expectations, they were disappointed with its outlook for iPhone sales, especially given rival Samsung's woes.

"In essence, in China and elsewhere, while Apple's products are still seen favourably, the distance between Apple and its competitors is nowhere near as great as it once was," retail research firm Conlumino head Neil Saunders wrote in a note, according to Reuters.

The latest US economic data were better than anticipated. The US trade deficit shrank 5.2% to $US56.1 billion in September, bolstering hope the third-quarter GDP growth might beat expectations.

"We now believe the boost from trade could be closer to a full percentage point, almost twice what we had expected," Connecticut-based RBS chief economist Michelle Girard told Reuters. Ms Girard now predicts real GDP growth in the third quarter at 3.3%.

Separately, a Commerce Department report showed new home sales rose 3.1% to a seasonally adjusted annual rate of 593,000 units in September, an unexpected gain.

Mondelez improves
Mondelez International shares climbed 3.6% after the maker of Cadbury chocolate upgraded its full-year profit forecast.

The company has increased its full-year adjusted earnings per share outlook and now expects growth of about 25% on a constant-currency basis, Mondelez says.

"Our third quarter results underscore our continued commitment to improving operational efficiency, expanding margins and profitably growing volume while also investing in strategic growth initiatives for the longer term," chief executive Irene Rosenfeld says.

"In the face of challenging market conditions, we're building a stronger, more streamlined company that is well positioned to deliver sustainable, profitable growth and attractive cash generation."

In Europe, the Stoxx 600 Index finished the day with a 0.4% slide from the previous close. France's CAC 40 Index slipped 0.1%, Germany's DAX Index dropped 0.4% lower, while the UK's FTSE 100 Index shed 0.9%.

Bayer profit up
Germany's Bayer, which agreed to buy Monsanto in a $US66 billion deal, reported better than expected quarterly profit bolstered by its pharmaceutical unit.

Even so, Bayer shares closed 1.4% lower in Frankfurt as investors are concerned about weakness in its Crop Science division.

Pharmaceuticals posted "encouraging" sales growth of 7.6% in the quarter, Consumer Health sales grew 3.6%, while sales of Crop Science were level year-on-year, Bayer says.

"Earnings are not strong enough to fuel markets," Dusseldorf-based Bankhaus Lampe equity strategist Ralf Zimmermann told Bloomberg. "Some investors who had expected accelerating earnings may be disappointed."

(BusinessDesk)