* Wall Street coming off worst week of 2013
* Halliburton rallies after results
* Power-One soars after $1 billion purchase offer from ABB
* Indexes off: Dow 33 pct, S&P 0.25 pct, Nasdaq 0.11 pct
By Chuck Mikolajczak
NEW YORK, April 22 (Reuters) - U.S. stocks edged lower on
Monday, as earnings from Caterpillar, Halliburton and other
major companies pointed to more volatile trading ahead.
General Electric, down 2.1 percent to $21.29 and
McDonald's Corp, off 1.2 percent to $98.66, extended
losses from Friday after posting lackluster earnings. Both
stocks were declining for the fourth straight day.
Wall Street is coming off a week of extreme volatility, with
the CBOE Volatility index jumping 24 percent, the biggest
weekly gain for the so-called fear index this year. The index
was up 2.5 percent on Monday.
The swings were largely driven by weak corporate earnings
and signs of slowing growth from China, which led to a steep
drop in commodity prices. The week's decline fueled talk that
the market's long anticipated pullback had arrived, though the
S&P remains up nearly 9 percent on the year.
Caterpillar reported disappointing quarterly results
and cut its 2013 profit forecast. Its stock advanced 0.6 percent
to $80.92 after bullish comments from Chairman and Chief
Executive Officer Doug Oberhelman.
Halliburton, the oil field services company, rose
2.6 percent to $38.19 after the company posted quarterly results
and said it is in talks to settle private claims against it in a
"This is all going to be very much a direction driven by
earnings," said Peter Kenny, managing director at Knight Capital
in Jersey City, New Jersey.
"The majors are only off 3 to 4 percent from the high but we
have done that fairly efficiently and if earnings are any
indication, there is going to be more choppy action ahead."
Earnings also due on Monday included Texas Instruments
and Netflix Inc after the market's close. For
the week, 168 companies in the S&P 500 are scheduled to
With 104 S&P 500 components having reported through Friday,
67.3 percent of companies have topped profit expectations,
according to Thomson Reuters data. Analysts expect earnings
growth of 2.1 percent this quarter, up from expectations of 1.5
percent at the start of the month.
The Dow Jones industrial average dropped 48.66
points, or 0.33 percent, to 14,498.85. The Standard & Poor's 500
Index shed 3.90 points, or 0.25 percent, to 1,551.35. The
Nasdaq Composite Index lost 3.48 points, or 0.11
percent, to 3,202.58.
Investors will be looking to the S&P 500's 50-day moving
average of 1,544.74, which could serve as a level of market
support. The index closed under that level for the first time
this year on Thursday but rebounded above it on Friday.
The National Association of Realtors said existing-home
sales edged down 0.6 percent last month to a seasonally adjusted
annual rate of 4.92 million units. Economists polled by Reuters
had expected home resales to rise to a 5.01 million-unit rate.
Power-One Inc soared 56.4 percent to $6.32 in after
ABB agreed to buy the company for about $1 billion.