Dow falls most since June amid disappointing earnings

Regions Financial

Regions Financial Corp. fell 7.2 percent to $6.57 after the bank said it would move as much as $400 million in loans to non- performing status in the fourth quarter.

Monster Beverage Corp. slid 12 percent to $40.30. The company was removed from the Conviction Buy list at Goldman Sachs Group Inc. The shares tumbled 14 percent yesterday after its energy drinks have been cited in the deaths of five people in the past year, according to incident reports that doctors and companies submit to the U.S. Food and Drug Administration.

Facebook Inc. rose 0.6 percent to $19.44 ahead of its earnings report. The company is set to post another quarter of slowing revenue growth after struggling to wring money from advertisers seeking to connect with users of mobile devices.

Coach Inc. surged 8.4 percent to $58.70. The largest U.S. luxury handbag maker reported fiscal first-quarter profit that exceeded analysts’ estimates as it kept expenses for acquisitions and e-commerce from increasing too quickly.

Turnaround Strategy

Yahoo! Inc. rose 6.2 percent to $16.75. New Chief Executive Officer Marissa Mayer outlined her turnaround strategy for the biggest U.S. Web portal, emphasizing mobile technology and personalized services.

United Parcel Service Inc., which is considered an economic bellwether, rose 3 percent to $73.73. It reduced the top end of its 2012 profit forecast after posting third-quarter earnings that matched analysts’ estimates, buoyed by a gain in U.S. package volumes and international exports.

Harley-Davidson Inc. added 7.7 percent to $46.90. The biggest U.S. motorcycle maker surged after touting new models headed to dealerships by 2015. New bikes coming by 2015 will benefit from the company’s focus on the flagship Harley brand, Chief Executive Officer Keith Wandell said today.

Federal Reserve Chairman Ben S. Bernanke is trying to inject a little of the exuberance his predecessor Alan Greenspan called “irrational” into markets for everything from stocks to housing.

Higher Yielding

Bernanke, who is seeking to spur the economy with a third round of so-called quantitative easing, has said his stimulus works by lowering borrowing costs and encouraging investors to seek higher-yielding assets. Boosting home and equity prices through bond buying will encourage consumers and businesses to spend more, according to Bernanke.

Since these are the same assets that plummeted during the financial crisis after reaching record highs, “is there some risk you could start a new bubble and repeat the whole cycle? I suppose there is,” said Robert Shiller, the Yale University professor who forecast the end of the Internet boom in his book, “Irrational Exuberance,” which was published in March 2000, the month the Nasdaq Composite Index peaked before crashing 78 percent.

Bloomberg News

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