Overnight Markets: Wall Street erases early gains on 3M forecast

Wall Street on Thursday closed little changed as 3M Co. led a decline in industrial shares after slashing its profit forecast, helping offset an early gain fuelled by Exxon Mobil Corp.’s strong earnings report.

The Dow Jones industrial average dropped 12 points, or 0.11%, to 11,114. The Standard & Poor's 500 Index gained one point, or 0.11%, to 1,184. The Nasdaq Composite Index added four points, or 0.16%, to 2,507.

Shares started the day upwards as government data showed that applications for US unemployment benefits unexpectedly declined last week to the lowest level in three months. Initial jobless claims fell by 21,000 to 434,000 in the week ended 23 October.

Stocks were boosted further after Exxon Mobil’s third-quarter net income rose 55% pushing the company’s shares up 0.8%. Microsoft Corp was up 3.1% in extended-hours trading after it registering a 51% jump in quarterly profit. Symantec climbed 4.1% and Eastman Kodak Co. jumped 15%.

However, the early gains were pared back after industrial shares came down in response to 3M’s slashing of reduced the top end of its annual forecast by 6 cents to $5.74. The company’s shares fell 5.9%. Halliburton declined 8%, while Apple Inc. slumped 0.8% as Motorola Inc., its rival in the mobile-phone business, reported third- quarter earnings that topped analysts’ estimates.

Investors also pulled back from the markets amid caution before expected upheaval from next week's elections and a likely declaration of more stimulus from the Federal Reserve.

In current trading, Japan led the Asian markets down on Friday on signs of sluggish consumer electronics demand and as Sharp Corp. and Advantest Corp. cut their profit forecasts.

The MSCI Asia Pacific Index fell 0.4% to 129 as of 9:49 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average decreased 1.4%, while South Korea’s Kospi Index dropped 0.9%. Australia’s S&P/ASX 200 Index declined 0.4%.