Wall Street ends higher after factory data; Dow, S&P up for week

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks rose on Friday after surprisingly strong manufacturing data overshadowed expectations that the Federal Reserve might reduce stimulus earlier than expected.

The Dow Jones industrial average and the S&P 500 rose for the week as well, their fourth straight week of gains.

Factory activity expanded around the world, several business surveys showed, with Chinese manufacturers reporting the fastest upturn in 18 months. The Institute for Supply Management (ISM) said on Friday its index of U.S. factory activity rose to 56.4 in October, its best reading since April 2011.

While the news underscored views that the Federal Reserve may be considering scaling back its stimulus sooner than some market participants have been expecting, it also gave investors surprising evidence of the manufacturing sector's strength.

The reports "confirmed that maybe the economy isn't quite as weak or rolling over" as some expected, said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, which manages about $58 billion in assets.

The Fed on Wednesday decided to continue its stimulus program, citing economic weakness.

Boeing Co shares gained 1.9 percent to $133.03, a day after it said it would increase production of its 737 aircraft to 47 planes per month by 2017 from 38 now - a move that analysts said bodes well for the company.

The Dow Jones industrial average <.dji> rose 69.80 points, or 0.45 percent, to end at 15,615.55. The Standard & Poor's 500 Index <.spx> gained 5.10 points, or 0.29 percent, to finish at 1,761.64. The Nasdaq Composite Index <.ixic> added 2.34 points, or 0.06 percent, to close at 3,922.04.

For the week, the Dow rose 0.3 percent and the S&P 500 gained 0.1 percent, while the Nasdaq slipped 0.5 percent.

On the Nasdaq, shares of First Solar Inc jumped 17.6 percent to $59.14 after the U.S. solar panel manufacturer's results beat forecasts and the company raised its full-year profit outlook.

Among decliners, shares of Chevron Corp slid 1.6 percent to $118.01 after third-quarter revenue fell short of expectations.

American International Group Inc dropped 6.5 percent to $48.28, a day after the insurer reported earnings that slightly beat expectations. However, analysts expected better results in the insurer's consumer lines business and said it benefited from a favorable tax rate this most recent quarter.

The latest results show the mixed picture in earnings. With about 74 percent of S&P 500 companies having reported results so far, 68.5 percent have topped Wall Street's expectations, above the long-term average of 63 percent, while just 53.3 percent have topped revenue forecasts, below the 61 percent average since 2002, Thomson Reuters data showed.

Although the three major U.S. stock indexes ended Friday's session with modest gains, the market's breadth was negative.

Decliners outnumbered advancers by a ratio of 8 to 7 on the New York Stock Exchange, while on the Nasdaq, three stocks fell for every two that rose.

(Additional reporting by Luke Swiderski Editing by Nick Zieminski and Jan Paschal)

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Wall Street ends session lower but posts gains for October

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks finished lower on Thursday as the Federal Reserve's statement the day before added to investors' anxiety about the timing of a pullback in its stimulus program.

While it was a second consecutive day of losses for the market, all three major indexes ended October with solid gains.

Dragging on the Dow and the S&P 500, Visa Inc lost 3.5 percent to $196.67 after the world's largest credit and debit card company reported a 28 percent drop in quarterly profit.

The U.S. central bank on Wednesday said it will keep buying $85 billion of bonds per month, citing weaker economic signals, but it removed a phrase from a previous statement expressing worries about credit conditions, which some investors interpreted as a sign that the Fed could begin tapering earlier than expected.

"That leaves tapering on the table for December," said Michael O'Rourke, chief market strategist at JonesTrading, in Greenwich, Connecticut.

Before the Fed's meeting, many market participants were anticipating that the stimulus plan would not change until at least early next year.

The Fed's accommodative monetary policy in recent years has contributed to the stock market's rally.

The Dow Jones industrial average <.dji> fell 73.01 points, or 0.47 percent, to close at 15,545.75. The S&P 500 <.spx> lost 6.77 points, or 0.38 percent, to finish at 1,756.54. The Nasdaq Composite <.ixic> dropped 10.91 points or 0.28 percent, to end at 3,919.71.

The S&P 500 closed near its intraday low, with a wave of end-of-session selling marked by sell-order imbalances near the close.

"This was more of an order flow thing," said Dennis Dick, proprietary trader at Bright Trading LLC in Las Vegas. "Some participants, some institutions wanted out big time, and they got out."

For the month, the Dow gained 2.8 percent, the S&P 500 added 4.5 percent and the Nasdaq rose 3.9 percent.

The S&P 500 is up 23.2 percent for the year so far.

"It's already at nosebleed heights and it could go higher, but people are focusing on the rewards and not the risks," including ongoing weakness in the economy," said Uri Landesman, president of Platinum Partners in New York.

Among the day's gainers, shares of Exxon Mobil Corp , the world's largest publicly traded oil company, helped support the Dow and the S&P 500, rising 0.9 percent to $89.62 after the company reported adjusted third-quarter earnings that beat expectations.

Expedia jumped 18 percent to $58.97 and ranked as the S&P 500's best percentage gainer, a day after reporting third-quarter earnings that exceeded expectations.

Facebook reported strong growth in its mobile advertising business late on Wednesday, though it said it didn't plan to boost the frequency of ads shown to users. Facebook's stock rose 2.4 percent to close at $50.21.

With results in from 355 companies in the S&P 500, 68.2 percent have topped Wall Street's expectations, above both the 63 percent beat rate since 1994 and the 66 percent beat rate for the past four quarters, according to Thomson Reuters data.

Revenue performance has been weaker, however, with 53.6 percent of companies exceeding expectations, shy of the 61 percent beat rate since 2002, but above the 49 percent rate for the past four quarters.

Thursday's economic data was mixed. A gauge of business activity in the Midwest surged past expectations in October, while weekly initial jobless claims dipped in the latest week.

(Additional reporting by Luke Swiderski; Editing by Kenneth Barry and Jan Paschal)

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World shares dip but tech earnings lift Wall Street

By Angela Moon

NEW YORK (Reuters) - World equity indexes edged down on Friday but were near five-year highs as strong earnings from major U.S. technology companies propelled Wall Street to another day of gains.

The euro dropped from a near two year-high against the dollar, pressured by a survey showing an unexpected fall in German business morale.

While equity markets in Europe and Asia were weaker, on Wall Street the S&P 500 was on track to close at an all-time high as shares of Amazon surged 9 percent and Microsoft rose 6.5 percent following their quarterly results. The Dow was also approaching its all-time high, and the Nasdaq touched its highest level in 13 years.

The S&P 500 has gained 23 percent so far this year, just shy of its 23.5 percent jump in 2009. Surpassing that level would give the index its biggest annual gain in a decade. The S&P 500 on Friday afternoon was on track for a third straight week of gains.

"We've been positive on Microsoft for a while, but I can't remember the last time I saw it move up this much after earnings. It is very positive, and helping to boost the overall tape today," said Douglas DePietro, managing director at Evercore Partners in New York.

"Still, the market has been getting tired lately. While I believe we'll see another leg up soon, it isn't out of the question that we would need to consolidate near all-time highs."

MSCI's world share index, which tracks 45 countries, was down 0.1 percent but still near a five-year high.

Nikkei futures index fell 1.6 percent following news that a large earthquake struck in the ocean east of Japan, triggering a small tsunami. There were no immediate reports of damage on land from the quake, classified as magnitude 7.1 by the Japan Meteorological Agency, which struck about 370 km (230 miles) out to sea.

Japan's Nikkei stock average suffered its biggest one-day loss in 2-1/2 months on Friday, hit by the yen's strength against the dollar.

On Wall Street, the Dow Jones industrial average was up 28.38 points, or 0.18 percent, at 15,537.59. The Standard & Poor's 500 Index was up 4.58 points, or 0.26 percent, at 1,756.65. The Nasdaq Composite Index was up 11.45 points, or 0.29 percent, at 3,940.41.

The better-than-expected earnings late on Thursday from Amazon Inc and Microsoft boosted investor confidence in an earnings season that has been slightly disappointing, though Google Inc topped expectations. Next week's earnings spotlight will be on tech companies like Apple Inc and Facebook Inc .

European equities ended slightly lower on Friday, with Telecom Italia leading the telecoms sector down on concerns of a capital hike by the Italian company and Volvo hurting industrials after reporting a sharp drop in profits.

The pan-European FTSEurofirst 300 index closed 0.1 percent lower at 1,284.76 points, but for the week was up 0.6 percent for a third straight week of gains after hitting a five-year high on Tuesday.

In currency markets, the euro hovered close to a two-year high against the dollar as a souring of German business morale did little to dent bullish sentiment toward the euro zone common currency.

Still, the euro's fall was minimal and many analysts say the single currency could rise toward $1.40 as investors seek alternatives to a dollar hobbled by expectations the Federal Reserve will maintain its current level of monetary stimulus.

In afternoon New York trading, the euro was unchanged at $1.3804, not far from an earlier peak of $1.3833, its highest level since November 2011.

The dollar was up 0.1 percent against the yen at 97.38 yen, off a two-week low of 96.94 and above its 200-day moving average, a key chart level, at 97.34, suggesting room for more gains.

After a choppy week for commodities markets, Brent crude for December settled down 6 cents to $106.93 a barrel while U.S. crude oil ended up 74 cents at $97.85.

U.S. Treasuries prices edged up as investors waited on new signs about the strength of the economy, which is key to the timing of when the Fed is likely to reduce its bond purchase program.

Treasuries have been largely rangebound since Tuesday, after data showed employers hired fewer workers than expected in September, stoking fears the economy was slowing even before the government's 16-day shutdown.

Benchmark 10-year notes were last up 2/32 in price to yield 2.51 percent. The yields have fallen from 3.00 percent on September 5, before the Fed surprised investors by leaving its bond purchase program unchanged.

(Reporting by Angela Moon; Editing by Leslie Adler)

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World shares flat but Wall Street gains; S&P 500 at new high

By Angela Moon

NEW YORK (Reuters) - World equity indexes were near five-year highs on Friday as major U.S. technology companies propelled Wall Street to another day of gains, sending the S&P 500 index to close at a record.

Reversing early weakness, the euro slightly rose against the dollar, hovering close to a two-year high, as souring German business morale did little to dent bullish sentiment toward the euro zone common currency.

While equity markets in Europe and Asia were weaker, Wall Street extended its recent climb, helped by gains in technology shares after strong results from Microsoft and Amazon.com . Microsoft shares ended up 6 percent at $35.73 while Amazon.com added 9.4 percent to $363.39.

The S&P 500 has gained about 23.4 percent so far this year, just shy of its 23.5 percent jump in 2009. Surpassing that level would give the index its biggest annual gain in a decade.

"It seems like good news is being responded to very well and bad news is just seen as more evidence the Fed won't be able to tighten anytime soon," said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey.

The market has risen following last week's deal to avoid a U.S. debt default and end a partial government shutdown, as well as increased speculation the Federal Reserve will delay scaling back its stimulus for several months. The S&P 500 had hit record finishes for four sessions until Wednesday.

MSCI's world share index, which tracks 45 countries, was flat near a five-year high, erasing early weakness.

Nikkei futures index fell 1.6 percent following news that a large earthquake struck in the ocean east of Japan, triggering a small tsunami. There were no immediate reports of damage on land from the quake, classified as magnitude 7.1 by the Japan Meteorological Agency, which struck about 370 km (230 miles) out to sea.

Japan's Nikkei stock average suffered its biggest one-day loss in 2-1/2 months on Friday, hit by the yen's strength against the dollar.

On Wall Street, the Dow Jones industrial average rose 61.07 points, or 0.39 percent, to 15,570.28, the S&P 500 gained 7.71 points or 0.44 percent, to 1,759.78 and the Nasdaq Composite added 14.401 points or 0.37 percent, to 3,943.361. For the week, the Dow rose 1.1 percent, the S&P 500 was up 0.9 percent and the Nasdaq added 0.7 percent.

European equities ended slightly lower on Friday, with Telecom Italia leading the telecoms sector down on concerns of a capital hike by the Italian company and Volvo hurting industrials after reporting a sharp drop in profits.

The pan-European FTSEurofirst 300 index closed 0.1 percent lower at 1,284.76, but for the week was up 0.6 percent for a third straight week of gains after hitting a five-year high on Tuesday.

In the currency market, the euro was up 0.1 percent at $1.3808, not far from an earlier peak of $1.3832, its highest since November 2011. Against the yen, the euro was up 0.2 percent at 134.48 yen.

The dollar was flat against a basket of six major currencies at 79.178, off a near nine-month low of 78.998.

U.S. Treasury debt prices rose, with benchmark yields hovering near three-month lows, as investors shifted their focus to the Federal Reserve meeting next week, where it might signal it will stick to the current size of its bond-purchase stimulus.

The bond market has traded in a tight range since Tuesday, when yields fell on data that showed employers hired fewer workers than expected in September, stoking fears the economy was slowing even before the government's 16-day shutdown.

The 10-year note yield was on track to fall for a second straight week, though it has struggled to decline much below the chart resistance of 2.50 percent.

After a choppy week for commodities markets, Brent crude for December settled down 6 cents at $106.93 a barrel while U.S. crude oil ended up 74 cents at $97.85.

(Reporting by Angela Moon; Editing by Dan Grebler)

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Wall Street edges up after earnings, data

By Chuck Mikolajczak

NEW YORK (Reuters) - U.S. stocks edged higher on Thursday, as investors grappled with a host of corporate earnings and muddled batch of economic data.

Initial claims for state unemployment benefits fell less than expected as California continued to process a backlog of applications caused by computer problems.

Financial data firm Markit said its "flash," or preliminary, U.S. Manufacturing Purchasing Managers Index grew at its slowest pace in a year this month and factory output contracted for the first time since late 2009. The survey was conducted partly during a 16-day U.S. government shutdown that economists expect will slow overall U.S. growth slightly in the last three months of 2013.

With a mixed bag of corporate earnings so far, any additional gains in the equity market will likely stem from expectations that the U.S. Federal Reserve will continue its stimulus measures, which have propped up the equity market and economy for much of the year.

The S&P 500 <.spx> has risen 1.5 percent since politicians in Washington ended a stalemate October 16 to avoid a debt default and end a partial government shutdown, culminating in a fresh record high on Tuesday, but the damage to the economy has led investors to expect the Fed to delay scaling back its stimulus for several months.

"With the market having hit the 1,760 level earlier this week, we should probably drift sideways for a while and consolidate," said Phil Orlando, chief equity market strategist at Federated Investors in New York.

"We think the direction of the market is higher but we may have gotten to 1,760 too quickly and that is why we need to consolidate a bit."

Corporate earnings continue to pour in, with 47 S&P 500 components expected to report Thursday, including Microsoft Corp and Amazon.com Inc after the close.

The Dow Jones industrial average rose 65 points or 0.42 percent, to 15,478.33, the S&P 500 gained 2.72 points or 0.16 percent, to 1,749.1 and the Nasdaq Composite added 11.438 points or 0.29 percent, to 3,918.512.

Dow component 3M Co rose 0.6 percent to $123.91 after it reported a 6 percent rise in quarterly profit with higher sales across all its businesses.

Visa Inc rose 1.6 percent to $202.03 as the top boost to the Dow after the credit card payment processor boosted its annual dividend.

Ford Motor Co rose 1.9 percent to $17.86 after the second-largest U.S. automaker boosted its full-year global earnings and margin outlook, helped by an improved forecast in Europe and better-than-expected results in the third quarter.

(Editing by Bernadette Baum and Nick Zieminski)

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Wall Street gains on Fed hopes; Amazon.com up after the bell

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks resumed their upward move on Thursday as economic data underscored views U.S. monetary stimulus will be in place for the foreseeable future and as earnings offered some upbeat news.

Shares of PulteGroup Inc jumped after the homebuilder reported results and said a slowdown in new home orders would be "short-lived." Its shares jumped 7 percent to $17.85 and were the biggest percentage gainer on the S&P 500, while shares of D.R. Horton Inc rose 2.1 percent to $19.87 and Beazer Homes Inc added 1.5 percent to $19.41.

Economic data showed initial claims for state unemployment benefits fell less than expected in the latest week, though analysts noted a backlog of applications in California. On Tuesday, data showed that employers added fewer jobs than expected in September.

The day's data also included a preliminary look at Markit's October Manufacturing Purchasing Managers Index, which grew at its slowest pace in a year while factory output contracted for the first time since late 2009.

Expectations the Fed will continue its stimulus have helped stocks all year, with the S&P 500 index up 22.8 percent so far for 2013.

The S&P 500 declined on Wednesday, ending its four-session streak of record high finishes. Last week's legislation to avoid a debt default and end a partial government shutdown gave way to a relief rally and speculation that the Federal Reserve will delay scaling back its stimulus for several months.

"You've got this underlying liquidity surge that's propping prices up, and earnings season hasn't been poor," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

The Dow Jones industrial average was up 95.88 points, or 0.62 percent, at 15,509.21. The Standard & Poor's 500 Index was up 5.69 points, or 0.33 percent, at 1,752.07. The Nasdaq Composite Index was up 21.89 points, or 0.56 percent, at 3,928.96.

After the bell, Twitter said it intends to sell 70 million shares priced between $17 and $20 in an initial public offering that will value the company at as much as $10.9 billion.

Ford shares rose 1.4 percent to $17.76 after the automaker boosted its full-year global earnings and margin outlook, helped by an improved forecast in Europe and better-than-expected third quarter results.

Also on the rise were Apple shares , up 1.3 percent at $531.91, after investor Carl Icahn, in a public letter to Apple Chief Executive Tim Cook, called on Apple to commence a $150 billion share buyback immediately.

Third-quarter earnings overall has had its disappointments, including some weak outlooks and just 53 percent of companies so far beating analysts' revenue expectations, below the long-term average of 61 percent, according to Thomson Reuters data.

About 68 percent of companies are beating analysts' earnings expectations, above the 63 percent long-term average.

Among the day's decliners were Dow Chemical Co , Xerox Corp , which all fell following results or outlooks.

AT&T, a Dow component, fell 1.8 percent to $34.63 while Dow Chemical lost 1 percent to $40.62. Xerox slumped 10.4 percent to $9.61 after a weak outlook.

Shares of Symantec Corp dropped 12.7 percent to $21.49 after it reported lower-than-expected second-quarter revenue and forecast current-quarter results below expectations.

Also after the bell, shares of both Amazon.com and Microsoft jumped after posting results. Amazon.com gained 7.8 percent to $358.10 after it posted a narrower quarterly loss and stronger-than-expected sales.

Shares of Microsoft rose 5.6 percent to $35.60 after its profit rose more than expected.

DuPont

shares climbed 3 percent to $63.20 after the bell. The company said it will spin off its titanium dioxide unit and related businesses.

(Editing by Nick Zieminski and Kenneth Barry)

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Wall Street ends down as Caterpillar falls, Boeing rallies

By Julia Edwards

NEW YORK (Reuters) - U.S. stocks fell on Wednesday as shares of heavy-equipment maker Caterpillar and semiconductor companies tumbled after they reported earnings, ending the S&P 500's four-session streak of record high finishes.

Results from Caterpillar Inc and Boeing Co , two Dow components, illustrated the quarter's mixed picture of corporate results and outlooks, which have some investors worried.

Caterpillar was one of the biggest decliners on the S&P, slumping 6.2 percent to $83.62 after the manufacturer cut its full-year outlook for a third time and its profit missed expectations. That sent shares tumbling by the most in a day since September 2011.

"There's not a lot of room for error as earnings are growing at such a slow pace, particularly for a globally focused company like Caterpillar, which has been a proxy for global GDP in global markets," said Erik Davidson, deputy chief investment officer at Wells Fargo Private Bank. "It's no secret the rest of the world has suffered, so therefore a company like Caterpillar is going to suffer."

On the upside, Boeing surged 5.3 percent to $129.02 after airplane maker reported a rise in adjusted profit and raising its full-year forecast.

After the market closed, both AT&T and TripAdvisor reported revenue that was slightly below Wall Street's estimates. AT&T's revenue grew from the previous quarter to $32.16 billion compared with Wall Street estimates for $32.19 billion, according to Thomson Reuters I/B/E/S data.

TripAdvisor's revenue rose 20 percent to $255.1 million in the third quarter, below analysts' expectations of $255.9 million. TripAdvisor shares in extended-hours trading were up 5 percent to $79.25 after closing down 0.3 percent at $75.21 in the regular session. AT&T shares were flat.

About one-third of S&P 500 companies have reported thus far, with 66.3 percent topping profit expectations, a rate that is slightly higher than the historical average. Roughly 54 percent have beaten on revenue, below the 61 percent long-term average. Investors worry that much of the growth in earnings has not been generated by revenue.

"Finally the markets are focused on earnings after having been focused on many other things," Davidson, who called third quarter results released so far "tepid."

The semiconductor sector <.sox> dropped 3.4 percent a day after Broadcom , Altera and RF Micro Devices joined Intel and Texas Instruments in lowering their forecasts.

Broadcom shares fell 2.9 percent to $26.36, Altera lost 13.5 percent to $32.30 and RF Micro lost 8.6 percent to $5.63.

The Dow Jones industrial average was down 54.40 points, or 0.35 percent, at 15,413.26. The Standard & Poor's 500 Index was down 8.31 points, or 0.47 percent, at 1,746.36. The Nasdaq Composite Index was down 22.49 points, or 0.57 percent, at 3,907.07.

The S&P 500 closed at an all-time high on Tuesday, its fourth-straight record finish. The index is up 22 percent for the year up to Tuesday, not far from the 23.5 percent advance in 2009.

On Wednesday, 53 percent of total shares traded were declining.

Global equity markets weakened as China's primary short-term money rates rose on concerns the People's Bank of China may tighten its cash supply to counter inflation risks, which could hurt growth in the world's second-largest economy.

Also weighing on sentiment, the European Central Bank said it would put major euro zone banks through rigorous tests next year to build confidence in the sector. Some analysts said that if the review reveals unexpected problems, investor confidence could be undermined.

Netflix shares were up 2.4 percent to $330.24 following a large selloff on Tuesday when billionaire investor Carl Icahn cut his stake in the company.

(Editing by Bernadette Baum, Nick Zieminski and Kenneth Barry)

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Wall Street ends higher after Fed-affirming jobs report

NEW YORK (Reuters) - U.S. stocks climbed on Tuesday, pushing the S&P 500 to yet another record high, after weaker-than-expected job creation last month reinforced expectations the Federal Reserve will hold the course on its economic stimulus into next year.

The Dow Jones industrial average was up 75.78 points, or 0.49 percent, at 15,467.98. The Standard & Poor's 500 Index was up 10.05 points, or 0.58 percent, at 1,754.71. The Nasdaq Composite Index was up 9.52 points, or 0.24 percent, at 3,929.57.

(Reporting by Angela Moon; Editing by Nick Zieminski)

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Wall Street opens higher after payroll report

NEW YORK (Reuters) - U.S. stocks opened higher on Tuesday after weaker-than-expected job creation last month raised expectations that the Federal Reserve will continue to stimulate the economy at the current pace.

The Dow Jones industrial average was up 22.92 points, or 0.15 percent, at 15,415.12. The Standard & Poor's 500 Index was up 3.86 points, or 0.22 percent, at 1,748.52. The Nasdaq Composite Index was up 14.35 points, or 0.37 percent, at 3,934.40.

(Reporting by Ryan Vlastelica; Editing by Kenneth Barry)

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Wall Street mixed with eyes on earnings

By Rodrigo Campos

NEW YORK (Reuters) - U.S. stocks were little changed on Monday after the S&P 500 hit a fresh intraday record high, boosted by gains in Apple after a bullish research note, while underwhelming results from McDonald's weighed on the Dow.

The S&P 500 on Friday capped its biggest weekly gain in three months on stronger-than-expected earnings from companies including Google and Morgan Stanley and as a deal in Washington helped avert a possible government default and reopened the federal government after a 16-day shutdown.

"It is positive that investors are focusing on company fundamentals" and not on political dealings in Washington, said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois.

"The good news is we're returning to reactions that are stock specific," he said.

Apple led gains on the S&P 500 and Nasdaq after Societe Generale lifted its price target on the stock to $575 from $500 and advised clients to buy shares. The stock rose 2.3 percent to $520.82.

Shares of McDonald's fell 0.9 percent to $94.35, ranking the restaurant chain as the top point decliner in the Dow industrials. McDonald's reported revenue that missed estimates and warned global October sales could be relatively flat.

Other companies expected to report results on Monday include Netflix and Texas Instruments . More than 25 percent of the S&P 500 components are due to report this week.

The Dow Jones industrial average fell 7.83 points or 0.05 percent, to 15,391.82, the S&P 500 gained 0.62 points or 0.04 percent, to 1,745.12 and the Nasdaq Composite added 11.153 points or 0.28 percent, to 3,925.431.

Hasbro , up 7.7 percent at $50.91, was one of the top performers on the S&P 500 after the toy maker topped Wall Street's profit estimates.

JPMorgan Chase & Co shares edged up after it reached a tentative $13 billion deal with the U.S. government to settle investigations into bad mortgage loans sold to investors by JPMorgan and the banks it bought during the financial crisis. Shares rose 0.4 percent to $54.51.

"A settlement of this size brings closure for many and it allows them to put the episode behind," said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.

Shares of Tellabs Inc rose 4 percent to $2.45 after the network services provider agreed to be taken private by Marlin Equity Partners for $891 million.

The market barely reacted to news that U.S. home resales fell in September and prices rose at their slowest pace in five months, in the latest signs higher mortgage rates were taking some edge off the housing market recovery.

Japan's exports rose but were well short of expectations in September, a sign that slowing demand in Asia was taking the shine off Prime Minister Shinzo Abe's stimulus policies and clouding the outlook for a recovery.

(Reporting by Rodrigo Campos; Editing by Chizu Nomiyama, Kenneth Barry and Nick Zieminski)

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Wall Street mixed with eyes on earnings

By Rodrigo Campos

NEW YORK (Reuters) - U.S. stocks were little changed on Monday after the S&P 500 hit a fresh intraday record high, boosted by gains in Apple after a bullish research note, while underwhelming results from McDonald's weighed on the Dow.

The S&P 500 on Friday capped its biggest weekly gain in three months on stronger-than-expected earnings from companies including Google and Morgan Stanley and as a deal in Washington helped avert a possible government default and reopened the federal government after a 16-day shutdown.

"It is positive that investors are focusing on company fundamentals" and not on political dealings in Washington, said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois.

"The good news is we're returning to reactions that are stock specific," he said.

Apple led gains on the S&P 500 and Nasdaq after Societe Generale lifted its price target on the stock to $575 from $500 and advised clients to buy shares. The stock rose 2.3 percent to $520.82.

Shares of McDonald's fell 0.9 percent to $94.35, ranking the restaurant chain as the top point decliner in the Dow industrials. McDonald's reported revenue that missed estimates and warned global October sales could be relatively flat.

Other companies expected to report results on Monday include Netflix and Texas Instruments . More than 25 percent of the S&P 500 components are due to report this week.

The Dow Jones industrial average fell 7.83 points or 0.05 percent, to 15,391.82, the S&P 500 gained 0.62 points or 0.04 percent, to 1,745.12 and the Nasdaq Composite added 11.153 points or 0.28 percent, to 3,925.431.

Hasbro , up 7.7 percent at $50.91, was one of the top performers on the S&P 500 after the toy maker topped Wall Street's profit estimates.

JPMorgan Chase & Co shares edged up after it reached a tentative $13 billion deal with the U.S. government to settle investigations into bad mortgage loans sold to investors by JPMorgan and the banks it bought during the financial crisis. Shares rose 0.4 percent to $54.51.

"A settlement of this size brings closure for many and it allows them to put the episode behind," said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.

Shares of Tellabs Inc rose 4 percent to $2.45 after the network services provider agreed to be taken private by Marlin Equity Partners for $891 million.

The market barely reacted to news that U.S. home resales fell in September and prices rose at their slowest pace in five months, in the latest signs higher mortgage rates were taking some edge off the housing market recovery.

Japan's exports rose but were well short of expectations in September, a sign that slowing demand in Asia was taking the shine off Prime Minister Shinzo Abe's stimulus policies and clouding the outlook for a recovery.

(Reporting by Rodrigo Campos; Editing by Chizu Nomiyama, Kenneth Barry and Nick Zieminski)

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