U.S. stocks declined in early trade on Monday as mixed corporate earnings offset better-than-expected new home sales data.
The S&P 500 Index declined 1.70 points, or 0.13 percent, to trade at 1,335.68 at 10:20 a.m. EDT. The Dow Jones Industrial Average declined 22.74 points, or 0.18 percent, to trade at 12,483.25. The Nasdaq Composite Index gained 0.09 percent.
New home sales in the US rose 11.1 percent to a seasonally adjusted annual rate of 300,000 units in March compared to 270,000 units in the previous month and against economists’ estimation of 280,000 units.
On the corporate front, International Game Technology (NYSE:IGT) shares climbed 10.84 percent as its second quarter profit rose more than 10 percent. Net profit rose to $69.6 million or $0.23 per share compared to $0.7 million in the same quarter last year. The company also raised its earnings outlook for fiscal 2011.
Polycom, Inc. (NASDAQ:PLCM) shares jumped 14.41 percent, as its first quarter earnings and revenue exceeded Street view. Adjusted profit was $43 million or 48 cents a share, up from $25 million or 29 cents a share last year. Revenue grew to $344 million from $276 million. Analysts had expected profit of 42 cents a share on revenue of $337.80 million.
Kimberly-Clark Corp. (NYSE:KMB) shares declined 3.71 percent after the company said its first quarter net income fell to $350 million or $0.86 per share compared to $384 million or $0.92 per share in the same quarter last year. The company also lowered its earnings forecast for fiscal 2011. It expects full year earnings to be in the range of $4.80 to $5.05 per share compared to its previous estimation of $4.90 to $5.05 per share, while analysts’ expects earnings of $4.95 a share.
RadioShack Corp. (NYSE:RSH) shares declined 1.45 percent to $15.56 after the company said its first quarter net profit declined to $35.1 million or $0.33 per share compared to $50.1 million or $0.39 per share in the same quarter last year.
The euro advanced 0.10 percent to 1.4575 against the dollar and the yen declined 0.24 percent against the greenback.
Crude oil futures declined 0.56 percent to $111.66/barrel and gold futures advanced 0.27 percent.