Weekend Stock Market Wrap Up

US blue chips fell on October 25 as dim views from Boeing and General Motors cast doubt on investors’ hopes for next year’s earnings. Boeing shares fell 2.9% to $81.18 after the company announced a charge that pushed down the top end of its full-year 2006 earnings forecast. However, Nasdaq and S&P500 stock indexes were trading higher, supported in large part by results from online retailer Amazon.com.

People were expecting the Federal Reserve to keep its key interest rate unchanged at 5.25% for a third straight time after its two-day policy meeting. However, the investors were divided as to whether its next move will be to raise or cut rates. According to Jon Brorson, managing director of growth equities at Neuberger Berman in Chicago, earnings were somewhat of a mixed bag on October 24 and the same trend was expected on October 25.

On October 25, the Standard & Poor’s 500 Index was up 1.66 points at 1379.04. The Dow-Jones industrial average was down 28.10 points at 12,099.78. The Nasdaq Composite Index was up 7.91 points at 2,352.75. Shares of Amazon.com soared 11.2% to $37.40. The company’s profit and revenue have proved the analysts’ estimates wrong. The Web retailer announced it would slow growth in its technology spending, suggesting future profit may go up.

GM’s shares fell 4% to $34.76 as investors looked afar the rise in quarterly operating profit to 2007 and beyond when GM’s financial comparisons will be tougher. Shares of RadioShack, electronics retailer, fell 9.1% to $17.19 after the company announced a quarterly loss.

Hardware shares and household furnishings were among the worst performing subgroups as the National Association of Realtors released US existing home sales data for September. The data shows sales declining more than anticipated to a 6.18 million unit annual rate from a 6.30 million pace in August.