U.S. Stocks Drop After 5-Day Rally on Earnings Forecasts
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U.S. stocks declined, with the Standard & Poor’s 500 Index falling from a record, as valuations reached an almost four-year high and forecasts at companies from Caterpillar Inc. to Broadcom Corp. disappointed investors.
Caterpillar dropped 6.1 percent after reducing its 2013 revenue and profit forecast as slumping metal demand decreases orders from mining companies. Broadcom, a maker of chips that connect mobile devices to the Internet, slipped 2.9 percent. Boeing Co. climbed 5.3 percent to a record after boosting its full-year earnings estimate. Corning Inc. jumped 14 percent after approving a $2 billion buyback and agreeing to purchase full ownership of a Samsung Electronics Co. joint venture.