Kimberly-Clark Corp dropped US$1.10 to US$53.93. The maker of Huggies diapers and Kleenex tissue missed second-quarter profit expectations because of falling currencies in Europe and Latin America and higher energy costs.
Toys "R" Us Inc slipped US$0.35 to US$24.80. The biggest toy retailer said it will post a wider-than-expected loss in the second quarter because of the sagging economy and its plan to increase spending.
Investors will focus next week on earnings reports and outlooks from companies including Citigroup Inc, Pfizer Inc. and International Business Machines Corp.
The second quarter will be the worst for corporate profits with growth resuming in the fourth quarter, analysts predict.
Earnings for companies in the S&P 500 are expected to decline 18 percent in the second quarter and 7.5 percent in the third quarter before gaining 3.7 percent in the fourth quarter, according to First Call/Thomson Financial.
Some investors remain skeptical that business -- especially in technology companies -- will recover any time soon.
"I don't think [the market] is anywhere near ready to take off," said Brian Byphrow, who manages US$2 billion at 1st Source Corp in South Bend, Indiana. "You have to see some firm evidence that demand is picking up. In certain cases demand isn't getting worse, but that doesn't equate to things getting better.
"It's a little premature to be going out there and buying your favorite tech stocks," he said.
USX-US Steel Group Inc climbed US$0.10 to US$20.65. The biggest US steelmaker said its second-quarter loss was less than forecast because shipments and steel prices increased. US steel shipments rose 10 percent during the second quarter, the company said.
International Paper Co rose US$0.65 to US$38.56. The biggest paper-and-lumber maker will halt production of about 670,000 tons of paper, and trim another 655 jobs, to cope with declining profit amid a glut of paper.
Great Lakes Chemical Corp dropped US$1.81 to US$30. The specialty-chemicals maker said it will fire 390 workers, or 8 percent of its workforce, over the next year and won't meet its profit target for the second quarter.
Viacom Inc declined US$0.40 to US$49.16. Merrill Lynch & Co analyst Jessica Reif Cohen lowered her profit forecast for the entertainment and broadcasting company, citing slowing advertising sales.
Guidant Corp gained US$1.31 to US$29.30 after discussions with US regulators over its experimental heart-failure device has given the company "renewed optimism." A government panel had recommended against approval of the device.
The Russell 2000 Index of smaller stocks rose 1.67, or 0.3 percent, to 490.71. The Wilshire 5000 Total Market Index, the broadest measure of US shares, advanced 63.71, or 0.6 percent, to 11,271.92. The market value of US stocks gained US$73.3 billion.
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