* Full-year profit outlook for Dow component Boeing weighs
* U.S. June durable goods orders unexpectedly drop
* Beige Book downbeat on economy
* Indexes off: Dow 0.4 pct, S&P 0.7 pct, Nasdaq 1 pct
* For up-to-the-minute market news see []
(Updates to close)
By Edward Krudy
NEW YORK, July 28 (Reuters) - U.S. stocks fell on Wednesday
after weak durable goods figures and a downbeat assessment of
the economy from the Fed's Beige Book kept the benchmark S&P
500 trapped below its 200-day moving average.
A three-day rally built on strong earnings boosted the
index to close Monday above its 200-day moving average, a
closely watched measure of market direction. It has since
stalled as trading remains rangebound and technically driven.
"In the short run technicals are dominating daily movements
here until we get a fundamental (piece of news) to knock us off
that," said Jim Paulsen, chief investment officer at Wells
Capital Management.
Boeing Co <BA.N> disappointed investors after it forecast
full-year earnings slightly below estimates. The plane maker's
shares fell 1.9 percent to $67.32. For details, see
[]
The U.S. Federal Reserve's Beige Book, a summary of
national economic conditions, added to the disappointment. It
indicated activity was not as robust in a few districts and had
lost steam over the past several weeks. []
"With the nice rally that we had, it looks like some
profit-takers are starting to take charge here and the Beige
Book sparked it," said Ryan Detrick, senior technical
strategist at Schaeffer's Investment Research in Cincinnati,
Ohio.
"Earnings have been good, but the overall economy is still
sluggish at best and is not coming back as much as we would
have hoped," he said.
The S&P's 200-day moving average is currently around 1,114.
Investors are struggling to either define it as the top of a
recent rally or a consolidation point leading to further
gains.
Paulsen said holding above 1,100 could set the S&P for a
run at the 1,150 level if fundamentals are supportive. Some
investors are wary of committing ahead of a report on weekly
jobless claims and U.S. economic growth later this week, he
said.
The Dow Jones industrial average <> dropped 39.81
points, or 0.38 percent, to 10,497.88. The Standard & Poor's
500 Index <.SPX> dropped 7.72 points, or 0.69 percent, to
1,106.12. The Nasdaq Composite Index <> dropped 23.69
points, or 1.04 percent, to 2,264.56.
With 49 percent of S&P 500 companies reporting earnings, 77
percent have beat expectations, according to Thomson Reuters
Proprietary Research.
Defense contractor General Dynamics Corp <GD.N> and
ConocoPhillips <COP.N>, the third largest U.S. oil company,
both posted stronger-than-expected quarterly profits. General
Dynamics finished up slightly at $61.80 while ConocoPhillips
ended unchanged at $54.44.
Homebuilders fell sharply a day after Meritage Homes Corp
<MTH.N> reported a 22 percent sales decline following the
expiration of a federal homebuyer tax credit.
Meritage dipped 6.3 percent to $16.84, and the PHLX Housing
Index <.HGX> fell 3 percent. []
New orders for long-lasting U.S. manufactured goods
unexpectedly fell for a second straight month in June, posting
their largest decline since August, a reminder of the
challenges faced by the economy. []
About 7.11 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and Nasdaq, short of last
year's estimated daily average of 9.65 billion.
Declining stocks outnumbered advancing ones on the NYSE by
a ratio of over 2 to 1, while on the Nasdaq, about five stocks
fell for every two that rose.
(Reporting by Edward Krudy; Additional reporting by Leah
Schnurr; Editing by Kenneth Barry)
