A drop in profits for Norfolk Southern hit other railroad stocks. Norfolk Southern reported a 27 percent slump in quarterly earnings late Tuesday, as falling coal prices led to lower revenue. Many utilities have favored using cheap natural gas instead of burning coal this year, pushing down coal prices and weighing on railroad operators.
Norfolk Southern fell $4.92 to $61.09. Union Pacific lost $2.35 to $120.87.
Prices for U.S. government bonds inched lower, sending yields up. The yield on the benchmark 10-year Treasury note edged up to 1.79 percent from 1.76 percent late Tuesday.
Among other stocks in the news:
• Netflix dropped $8.10, or 12 percent, to $60.12. Late Tuesday, it slashed its prediction for how many U.S. video-streaming subscribers it would add this year to 4.7 million to 5 million. It had predicted it would add as many as 7 million.
• Dow Chemical rose $1.33 to $29.88. The company announced a wide-ranging restructuring plan late Tuesday that includes cutting 2,400 jobs and closing 20 manufacturing facilities. The company cited slowing economic growth in Europe and elsewhere.
• Tempur-Pedic International sank 20 percent after the maker of memory-foam mattresses reported revenue that was well below the estimates of Wall Street analysts. The company also cut its estimates for full-year profits and revenue. Its stock plunged $6.21 to $25.66.
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