Stocks ended mixed Wednesday as disappointing earnings from Morgan Stanley and a profit warning from Ford Motor Co. eclipsed a slight drop in crude-oil prices.
The Dow Jones Industrial Average fell 11.74, or 0.1 percent, to settle at 10,587.93. The Standard & Poor's 500 Index rose 0.27, or 0.02 percent, to 1,213.88. The Nasdaq Composite Index edged up by 0.96, or 0.1 percent, to 2,092.03.
Profit at Morgan Stanley fell 24 percent in the second quarter, the company announced Wednesday, due to difficult market conditions and higher legal expenses in connection with high-profile lawsuits. Morgan Stanley reported net income of $298 million (86 cents per diluted share) for the quarter ended May 31, compared with $1.2 billion ($1.10) for the like period a year earlier.
After Tuesday's closing bell, Ford Motor Co. reduced its full-year profit outlook for the second time in two months. On Wednesday afternoon, Moody's Investors Service said it may cut Ford's debt ratings to junk status.
U.S. crude oil futures slipped nearly $1 after government inventory data showed a supply drop for the third week, but within market expectations The Energy Department said crude stockpiles fell by 1.6 million barrels to 327.4 million for the week ended June 17. A barrel of light crude settled at $58.09, down 95 cents on the New York Mercantile Exchange.
Among local companies, Jamdat Mobile Inc. gained 6.8 percent to $29.72 after the L.A.-based wireless game publisher's stock was rated "buy" in new coverage by analyst Erik B. Zamkoff at Independent Research Group LLC. The price target was set at $35 per share.
ValueClick Inc. rose 3 percent to $11.15 after the company's stock was raised to "hold" from "sell" by analyst Ivan Feinseth at Matrix USA. On Tuesday, the Westlake Village-based provider of online advertising services raised its fiscal 2005 earnings outlook to the range of 38 cents to 40 cents per diluted share on revenue of $222 million to $226 million, from earlier guidance of 37 cents to 39 cents per share on revenue of $218 million to $223 million.
And Jakks Pacific Inc. moved up 1.1 percent to $20.07 after the Malibu-based toymaker announced it had signed licensing agreements with preschool entertainment producer HIT Entertainment to market and distribute its Plug It In & Play TV Games titles for a number of children's brands, including The Wiggles, Barney, Bob the Builder and Thomas & Friends. Plug It In & Play TV Games connect to the A/V jacks of any standard television.
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