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8B Daily News – Thursday, July 25, 2013 Furniture Depot Clearance Sale 50-60 J U 235 So. Main St., Red Bluff % L 527-1657 off Up To Throughout the Store Y Grim Caterpillar outlook tugs stocks mostly lower MON.-FRI. 9:00-6:00 SAT. 9:00-5:00 • SUN. 11:00-5:00 NEW YORK (AP) — A gloomy outlook from Caterpillar, the world's largest construction equipment company, tugged the stock market lower Wednesday. The meager drop gave the stock market two consecutive days of losses, the first time that's happened all month. Caterpillar's earnings fell 43 percent in the second quarter as China's economy slowed and commodity prices sank. The company also warned of slowing revenue and profit, and its stock dropped $2.08, or 2 percent, to $83.44. Slight losses spread across a wide variety of companies, with nine of 10 industry groups in the Standard & Poor's 500 index ending lower. The holdouts were technology companies, which got a lift from Apple's surging stock. Despite reporting lower quarterly earnings Tuesday, the maker of tablets, smartphones and computers still managed to Wall Street beat analysts' estimates, thanks to rising shipments of iPhones. Apple jumped $21.52, or 5 percent, to $440.51. The Dow Jones industrial average fell 25.50 points, or 0.2 percent, at 15,542.24. The Standard & Poor's 500 index fell 6.45 points, or 0.4 percent, to 1,685.94. The technology-heavy Nasdaq composite index edged up 0.33 of a point, or less than 0.1 percent, to 3,579.60. Although far from a blockbuster earnings season, the larger trend for corporate profits looks good. Analysts forecast that second-quarter earnings for companies in the S&P 500 increased 4.2 percent over the same period last year, according to S&P Capital IQ. At the start of the month, they were looking for earnings to rise 2.8 percent. More than six out of every 10 companies have surpassed Wall Street's profit targets. ''Yes, they're beating expectations, but expectations are so low,'' said Brad McMillan, chief investment officer at Commonwealth Financial. The overall number masks some worrisome trends, he said. Financial firms, such as Goldman Sachs and Capital One, have posted the highest rate of earnings growth of any industry. Pull their results out of the total, however, and earnings are on track to slump 3.5 percent, according to FactSet. ''You can't call this a blowout quarter so far,'' McMillan said. Another 25 big companies, including Visa and Qualcomm, are releasing reports after the closing bell. Among them, Facebook surged 14 percent to $30.31 in after-hours trading after reporting income and revenue that easily beat analysts' estimates. Surging demand for pickup trucks in the U.S. helped Ford Motor post higher quarterly profits. Sales in China also jumped 47 percent in the first six months of the year. The second-largest car company in the U.S. raised its profit forecast and its stock climbed 43 cents, or 3 percent, to $17.37. AT&T dropped 41 cents, or 1 percent, to $35.40. Higher costs hit AT&T's profits in the latest quarter. The company's coffers were drained by smartphone sales, which it subsidizes in the hope of making money back over the life of two-year contracts. In Europe, a broad gauge of economic activity reached the highest level since January 2012, sending stock markets in Germany and France higher. Financial information company Markit said Wednesday that its monthly purchasing managers' index for the countries that use the euro currency increased for the fourth month running. France's CAC 40 rose 1 percent and Germany's DAX gained 0.8 percent. The report out of Europe pushed prices for U.S. government bonds down and their yields up. The yield on the 10-year Treasury note rose to 2.58 percent from 2.51 percent late Tuesday. Signs of economic strength usually lead traders to sell Treasurys, considered one of the safest places in the world to park cash. Facebook soars after second quarter results beat estimates SAN FRANCISCO (AP) — Facebook's stock is flying high after the world's biggest social network posted higher revenue from mobile ads and 741 Main Street, Suite #2 Red Bluff, CA 96080 1-800-287-2187 (530) 527-2187 C & C PROPERTIES An Independently owned and operated Member of Coldwell Banker Residential Affiliates. 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Facebook Inc. said Wednesday that it earned $333 million, or 13 cents per share, in the AprilJune period. That's up from a loss of $157 million, or 8 cents per share, a year ago. Adjusted earnings were $488 million, or 19 cents per share, above the 14 cents that analysts were expecting. Large Reward Family Heirloom ter — across the industry. ''That seems not to be the case.'' Facebook's revenue grew 53 percent to $1.81 billion from $1.18 billion, well above the $1.62 million that analysts polled by FactSet were expecting. Facebook has also quickened the pace of its revenue growth. In the first quarter, revenue grew 38 percent and in the fourth quarter of last year, 40 percent. Mobile revenue was $655.6 million, or 41 percent of the quarter's total advertising revenue of $1.6 billion. ''We've made good progress growing our KWIK KUTS LOST The Menlo Park, Calif.based company's stock jumped $4.93, or 18.6 percent, to $31.44 in extended trading after closing at $26.51. The stock priced at $38 when Facebook went public in May 2012 and hasn't hit that since. ''I'm completely surprised,'' said Gartner analyst Brian Blau, summing up the sentiments of many investors who've watched Facebook's stock price stagnate over the past year. ''I was actually thinking that maybe they would have a soft quarter,'' he added, citing a softening of advertising revenue — Facebook's bread and but- Sierra Sound Family Hair Salon 20 % off Gold Cross approx 6" x 3" in vicinity of More 4 Less or Denny's 586-1984 ANY RETAIL PRODUCT with any chemical service of $50 or more 200 Regular $ Haircut off Reg. $13.95 Not good with other offers Expires 7/31/13 With coupon 1064 South Main St., Red Bluff • 529-3540 NEW & USED CD's Special Orders Avail. Car Stereo Sales - Service Installation We make house calls! 226 So. Main St., Red Bluff 527-3735 community, deepening engagement and delivering strong financial results, especially on mobile,'' said CEO Mark Zuckerberg, in a statement. ''The work we've done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future.'' Research firm eMarketer expects Facebook to increase its mobile advertising revenue more than fourfold to over $2 billion this year. This would give the company a 13 percent share of the global mobile ad market, up from about 5 percent last year.