U.S. stocks rise as S&P 500 annual gain nears biggest since 2003

Defense Contractors

Lockheed Martin Corp. added 3.3% to $129.39. The biggest U.S. government contractor raised its 2013 forecast as third-quarter profit jumped, defying Pentagon budget cuts.

The reduction in government spending weighed on United Technologies Corp., as the company trimmed its full-year sales projection. The stock dropped 1.4% to $106.09 for the biggest retreat in the Dow.

Apple lost less than 0.1% to $521.31, declining as much as 2.6% after erasing an earlier gain. Chief Executive Officer Tim Cook, facing two straight quarters of declining profit and a stock that’s down by more than a quarter from a September 2012 record, updated the company’s lineup of iPads at an event today.

Netflix slid 8.5% to $324.68. Shares of the world’s largest online subscription-streaming service have more than tripled this year for the best performance in the S&P 500 as of yesterday. Netflix’s valuation is “difficult to justify,” Bank of America Corp. said in a note. The stock jumped as much as 9.6% earlier today, after profit beat analyst estimates.

Stiffer Competition

Coach Inc. slid 7.9% to $49.90, the lowest since April. The largest U.S. luxury handbag maker said fiscal first- quarter profit fell 1.6% as stiffer competition curtailed handbag sales in North America.

EMC Corp. slipped 4.7% to $24.06. The world’s biggest maker of storage computers cut its full-year sales and profit forecasts after earnings fell short of estimates after U.S. federal government spending declined.

Groupon Inc., a deal-of-the-day coupon company, tumbled 7.7% to $9.78. The slowdown in Groupon’s domestic business worsened last month from August, Steve Weinstein, an analyst with ITG Investment Research, wrote in a note to clients.

RadioShack Corp. tumbled 17% to $2.93 as the consumer-electronics retailer posted a seventh straight quarterly loss. The company also said it received commitments for $835 million in new five-year financing to boost liquidity amid a turnaround effort.


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