MarketView for October 10

Summary

It was another down day on Wall Street on Wednesday with the S&P 500 index down for a fourth day on Wednesday, the result of disappointing news from Chevron and Alcoa as earnings season gets under way. Chevron fell 4.2 percent to $112.45 after it said third-quarter earnings would be "substantially lower" than the previous quarter, while Alcoa fell 4.6 percent to $8.71 after it posted a quarterly loss. The company cut its outlook for global aluminum demand, citing a slowdown in China. Both stocks are Dow components, and the blue-chip average posted its largest daily percentage drop since early July.

Meanwhile, Wall Street continues to focus on weak global demand as S&P 500 companies' third-quarter earnings are expected to fall 2.9 percent from a year ago, according to Thomson Reuter’s data. It would be the first decline in three years. Yet, the markets briefly trimmed losses after the Federal Reserve's Beige Book showed the overall economy had expanded modestly, with most districts seeing strengthened home sales in the last month.

The declines by the Dow Jones Industrial Average and the S&P 500 indexes were partially offset by gains from Wal-Mart, which hit an all-time high, and FedEx, which posted its largest daily advance this year. Wal-Mart ended the day up 1.7 percent to close at $75.42 after hitting an all-time high of $76.81, as it cited strong sales at its grocery stores and an excellent start to holiday layaway sales in its annual meeting with analysts and investors.

FedEx rose 5.2 percent to $89.99, its largest daily percentage increase this year, as the package delivery company laid out plans to sharply cut costs at two divisions, seeking to improve profits there by $1.7 billion over the next four years.

Yum Brands was up 8 percent to close at $70.99 as the parent company of KFC, Taco Bell and other fast-food restaurant chains raised its full-year profit forecast. Costco Wholesale also hit a record high at $104.43 after it reported a jump in quarterly profit. Shares closed at $101.56, up 1.9 percent. Meanwhile, Cummins lowered its 2012 forecast for a second time this year and its shares dropped 3.4 percent to $87.79.

About 5.9 billion shares changed hands on the three major equity exchanges, a number that was below the daily average so far this year of about 6.53 billion shares.