Stocks turn slightly lower as investors parse mixed earnings; Bernanke testimony looms

Stocks edge lower on mixed batch of earnings news

NEW YORK — Stocks are modestly lower as traders sort through a mixed batch of earnings reports. Apple Inc., Coca-Cola Co. and two major banks beat expectations, but Yahoo Inc. disappointed the market.

Traders are also wary ahead of congressional testimony about the economy later in the day from Federal Reserve Chairman Ben Bernanke.

Apple easily surpassed profit forecasts in its report. Coke, Morgan Stanley and Wells Fargo all beat analysts’ forecasts, but Yahoo’s shares sank after reporting disappointing results. Traders have grown skittish because of weaker-than-expected revenue at several big companies.

At midday, the Dow Jones industrial average fell 10, or 0.1 percent, to 10,219. The broader Standard & Poor’s 500 Index fell 2, or 0.3 percent, to 1,080. The Nasdaq composite index fell 12, or 0.5 percent, to 2,210.

Declining shares are ahead of advancers by 2 to 1 on the New York Stock Exchange, where volume is light at 374 million shares.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — Stocks edged lower Wednesday as traders pored over a mixed batch of earnings reports. Apple Inc., Coca-Cola Co. and two major banks beat expectations, but Yahoo Inc. disappointed the market.

Traders were also wary ahead of congressional testimony later in the day from Federal Reserve Chairman Ben Bernanke. The Fed recently lowered its long-term forecast for U.S. economic growth.

Apple easily surpassed profit forecasts in its earnings report released late Tuesday. The company also raised its revenue outlook above analysts’ expectations. Coke, Morgan Stanley and Wells Fargo all beat analysts’ forecasts, but Yahoo’s shares sank after reporting disappointing results. Other technology stocks were mostly lower, except for Apple, which rose sharply.

Traders have grown skittish over the past week because of weaker-than-expected revenue at major U.S. companies including IBM and Johnson & Johnson. Investors are focusing on revenue as companies report their results, believing that companies’ sales are a good indicator of how the overall economy is doing. With the second-quarter earnings season now about halfway through, the results have been mixed, sending the stock market swinging erratically over the past week.

In late morning trading, the Dow Jones industrial average fell 17.78, or 0.2 percent, to 10,212.18. The broader Standard & Poor’s 500 Index fell 4, or 0.4 percent, to 1,079.48. The Nasdaq composite index fell 15.32, or 0.7 percent, to 2,207.17.

Declining shares outpaced advancing ones three to two on the New York Stock Exchange, where volume was light at 310 million shares. Low volume can cause exaggerated swings in stock prices.

Stocks of materials producers were broadly higher after Freeport-McMoRan Copper & Gold, a major mining company, reported revenue that easily beat analysts forecasts. Freeport’s shares gained 4.2 percent.

Among other companies reporting earnings, Morgan Stanley jumped 8.6 percent, Apple rose 2 percent, Coke rose 1.8 percent and Wells Fargo rose 3.8 percent. Yahoo dropped 8.6 percent.

Stocks are coming off two days of gains. The Dow rose Tuesday by more than 75 points after falling nearly 150 early in the morning.

Traders are trying to get a read on the economy through companies’ profit reports, but earnings have been mixed over the past week. Profits are mostly improving, but sales are not growing fast enough at some companies to reassure investors the recovery is picking up momentum.

More certainty about the health of the economy could come from testimony by Bernanke. He is scheduled to begin two days of testimony before Congressto discuss the Fed’s view on the strength of the economy.

Bernanke is likely to say the economy isn’t headed back into recession, but he is also expected to be cautious about near-term growth. Bernanke will likely repeat a pledge that the Fed will provide any support needed to further boost the recovery.

Bond prices edged higher, pushing their yields slightly lower. The yield on the benchmark 10-year Treasury note, which helps set rates on mortgages and other kinds of loans, fell to 2.93 percent from 2.96 percent late Tuesday.

Overseas, Britain’s FTSE 100 rose 1.4 percent, Germany’s DAX index rose 0.4 percent, and France’s CAC-40 gained 0.7 percent. Japan’s Nikkei stock average fell 0.2 percent.