Oct. 23 - Summary: Stocks take a break from their winning streak but Boeing rises on outlook; Caterpillar tumbles on earnings miss; Crowdfunding proposal unveiled; B of A found liable in civil mortgage case . Bobbi Rebell reports.
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Stocks took a mid-week break on Wednesday- the S&P 500 snapping a four-day streak of record highs- after earnings related news pulled stocks lower.
Among them: Caterpillar. Its stock tumbled after the heavy equipment maker's earnings missed forecasts and it cut its full year outlook.
Winners on the day included Boeing- shares surged after the planemaker reported a jump in profits and raised its full year forecast. Northrop Grumman also a winner in the markets- its Q3 profits rose, and it also sees a higher full year profit. But General Dynamics,-which makes those Gulfstream jets as well as Navy warships, stock sank after news of a sales dip overshadowed a rise in earnings.
And after the bell, AT&T posted revenue slightly below forecasts- though earnings beat forecasts by a penny. The number 2 U.S. mobile phone provider added more new customers than expected- but still far less than rival Verizon Wireless.
A new proposal unveiled by U.S. regulators could make it cheaper and cut the red tape for businesses to raise money from small investors. Crowdfunding would allow start ups to solicit investments over the internet, without registering with the SEC, by using internet portals that would educate investors.
Securities and Exchange Commission Chairman Mary Jo White:
SOUNDBITE: MARY JO WHITE, CHAIRMAN, SECURITIES AND EXCHANGE COMMISSION (ENGLISH) SAYING:
"There is a great deal of excitement in the market place about the crowdfunding exemption and I'm pleased that we are in a position today to propose a rule that would upon adoption permit crowdfunding to begin. We want this market to thrive in a safe manner for investors. "
Right now businesses are limited to "accredited" investors- who have a million dollar net worth- excluding their home.
Bank of America has been found liable on one civil charge for fraud- related to its Countrywide unit and its sale of defective mortgages, B of A bought Countrywide in 2008.
In Europe, the European Central Bank said it would put top euro-zone banks through rigorous test next year to build confidence in the sector. News of the tougher stress tests weighed on the markets, breaking a nine-day winning streak.
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