U.S. stocks drop on Google earnings miss; Spanish bonds advance

Leading Indicators

The index of U.S. leading economic indicators rose in September by the most in seven months, boosted in part by a jump in permits for home construction that’s helping underpin the expansion. Manufacturing in the Philadelphia region expanded in October for the first time in six months, a sign the industry may be starting to stabilize.

“It’s one step forward, half a step back,” said Tom Wirth, who helps manage $1.6 billion as senior investment officer for Chemung Canal Trust Co., in Elmira, New York. “The economy is picking up a bit of momentum, but not a lot. Earnings have been mixed. Plus, the market has gone up substantially and it doesn’t go in one direction.”

European Shares

The Stoxx Europe 600 rose for a fourth day, adding 0.2 percent. Nestle SA declined 1.7 percent after reporting nine- month sales growth that fell short of analysts’ estimates. Remy Cointreau SA plunged 8 percent after France’s second-largest distiller posted first-half revenue growth that missed analysts’ projections.

Gold futures slid 0.5 percent to settle at $1,744.70 an ounce in New York. The S&P GSCI Index of raw materials was little changed.

Ten-year Treasury yields were little changed. The U.S. auction of $7 billion in 30-year inflation-indexed bonds sold at a record-low yield as investors continue to pay a premium to guard against the threat of rising consumer prices.

The Treasury Inflation Protected Securities sale’s bid-to- cover ratio, which gauges demand by comparing the amount bid with the amount offered, was 2.82, compared to an average of 2.71 over the past seven auctions. The offering drew a record low yield of 0.479 percent, versus the average forecast of 0.483 percent in a Bloomberg News survey.

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