US stock index retreated amid corporate earnings

The Standard & Poor’s 500 Index slightly declined, cutting a four straight day streak, as investors were focused on corporate earnings amid speculation on when the Federal Reserve may scale back its asset purchases.

The Dow gained 22.19 points, or 0.1%, to 15567.74, beating a July 18 record high. The Standard & Poors 500-stock index, however, retreated 3.14 points, or 0.2%, to 1692.39, with technology leading six of 10 industry sectors lower. The tech Nasdaq Composite Index also fell, dropping 21.11 points, or 0.6%, to 3579.27.

“What you’re seeing is revenues are coming in pretty lackluster and profits seem to be doing a little better than gains in sales,” Hank Herrmann, Overland Park, Kansas-based chief executive officer of Waddell & Reed Investment Management Co., said by phone for Bloomberg. “The market had a period of digesting the confusion over Fed tapering. For the moment, it’s focused on individual company fundamentals.” Herrmann added.

Asian markets advanced, led by a 2% jump in Chinas Shanghai Composite Index after a report that Premier Li Keqiang said Chinas economic growth needs to be kept above a minimum of 7%. Japans Nikkei Stock Average gained 0.8% after the Japanese government increased its economy forecast.

European markets dropped before the close of the session after U.S. manufacturers in the central Atlantic region said activity deteriorated this month. The Stoxx Europe 600 finished loosing 0.3%.

In corporate news, Apple added 3.9% to $435.21 at 4:41 p.m. in New York. The company reported revenue of $35.32 billion, ahead of the $35.04 billion forecast by analysts, as unit sales of iPhones rose from a year ago. Profit fell to $7.47 a share, beating the average estimate of $7.30 a share. The stock fell 1.7% in regular trading today.

Netflix declined 4.5% to $250.26 after saying it added 630,000 new U.S. customers for its Internet TV service in the second quarter, fewer than the average analyst projection of 700,000. The company forecast earnings of 30 cents to 56 cents a share in the third quarter, while the average analyst estimate called for 43 cents. Netflix shares have dramatically increased by 183% this year through yesterday.

United Technologies Inc. soared 2.9%, to $105.12 despite missing revenue estimates. However, it earned more than expected. The company also raised the lower end of the range of earnings it had forecast for the year.

Sourcefire Inc. jumped 28% to $75.49. Cisco Systems Inc., the biggest maker of networking equipment, agreed to acquire the cyber-security company for about $2.7 billion. Cisco slid 0.6% to $25.56.

Wendy’s Co., the fast food restaurant chain jumped 8.2% to $7.23, a five-year high. The company reported earnings that beat estimates and boosted its dividend. The company said it will sell 425 restaurants to franchisees while reducing company ownership to around 15% from 22%.