October 24, 2013 in Business

Caterpillar’s weak report stalls stock market surge

From Wire Reports
 

NEW YORK – A four-day streak of record closes ended for the Standard & Poor’s 500 index Wednesday after Caterpillar reported weak earnings and falling oil prices hurt energy stocks.

Caterpillar, which makes mining and construction equipment, is considered an important barometer of the global economy. The plunge in Caterpillar’s third-quarter profit discouraged investors and stalled a two-week surge in the stock market. Energy stocks dropped as the price of oil fell to its lowest in almost four months.

The S&P 500 fell 8.29 points, or 0.5 percent, to 1,746.38, ending its longest streak of record closes since mid-May.

Energy stocks fell the most of the 10 industry groups in the S&P 500. The price of oil slipped $1.44, or 1.5 percent, to $96.86 a barrel, on higher supplies of U.S. oil and weak demand for fuel.

Along with weaker earnings, Caterpillar issued a lower profit forecast. Its stock dropped $5.41, or 6.1 percent, to close at $83.76.

It wasn’t all bad news.

Boeing raised its profit estimate for the full year because deliveries of commercial planes continue to accelerate. The plane maker’s stock climbed $6.54, or 5.3 percent, to $129.02.

Nissan recalling SUVs over brake software issue

DETROIT – Nissan Motor Co. is recalling more than 188,000 Nissan and Infiniti SUVs worldwide to fix faulty brake control software that could increase the risk of a crash.

The recall covers some Nissan Pathfinders from the 2013 and 2014 model years as well as the 2013 Infiniti JX35 and its successor model, the 2014 QX60.

Nissan said that during light braking on rough roads, the anti-lock brake software could cause longer-than-expected stopping distances. The company said no crashes or injuries have been reported.

Nissan will notify owners within 60 days, and dealers will reprogram the anti-lock brakes free of charge.

The recall includes nearly 152,000 SUVs in the U.S. and roughly 36,000 in China, Canada, Mexico and other countries, the company said.

The Pathfinders were built between April 18, 2012, and Sept. 20 of this year. The JX35s were built from Sept. 15, 2011, to Jan. 16 of this year, while the QX60s were built from Jan. 17 to Sept. 20 of this year.

T-Mobile to offer limited free data for tablets

SAN FRANCISCO – T-Mobile will give owners of iPads and other tablet computers free data service for life as part of an effort to broaden its customer base beyond phones.

The free service would be limited to 200 megabytes of high-speed data per month – enough to upload about 800 Instagram photos or listen to more than three hours of streaming music, the company said.

T-Mobile US Inc. said the free service comes with no obligations, but the company expects people will want to buy plans for additional data once they grow accustomed to having it.

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