U.S. stocks fluctuate after debt-limit deal as IBM, Goldman drop

Goldman Revenue

Goldman Sachs fell 2.8% to $157.73. The world’s most profitable securities firm before the financial crisis said earnings were little changed as the bank cut costs in response to a 20% drop in revenue. The firm increased its dividend 10%.

EBay slipped 5.3% to $50.70 after saying fourth- quarter sales will be $4.5 billion to $4.6 billion amid “dramatically decelerating U.S. e-commerce growth.” Analysts on average were projecting revenue of $4.64 billion, according to data compiled by Bloomberg. EBay forecast profit excluding some items of 79 cents to 81 cents a share for the period, below analysts’ prediction of 83 cents.

American Express Co. rallied 3.9%, the most in nearly two years, to a record $79.33. The credit-card lender reported a third-quarter profit that beat analysts’ estimates.

Newmont Mining jumped 3.3% to $26.73. Gold rallied 2.5% on speculation the Federal Reserve will postpone slowing stimulus. The metal is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value and on earlier speculation the Fed would slow debt purchases this year.

Peabody, SanDisk

Peabody Energy Corp. surged 8.4% to $19.38 for the biggest gain in the S&P 500. The largest U.S. coal producer posted a surprise third-quarter profit after a recovery in domestic prices for coal used to generate electricity and a reduction in mining costs.

SanDisk Corp. climbed 6% to $66.74 after posting third-quarter adjusted earnings of $1.59 a share, exceeding the $1.33 median forecast of analysts surveyed by Bloomberg. The company reported sales of $1.63 billion, compared with the $1.56 billion projected by analysts.

Verizon Communications Inc. increased 3.2% to $48.77 as the second-largest U.S. phone company reported profit that exceeded projections.

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