Record-breaking earnings from Apple weren't enough to stem a tide of red ink this morning, as fallout from the State of the Union address as well as anxiety about the Federal Reserve's interest rate forecasts cast a shadow on the broader stock market. At around 10:15 a.m. EST, the Dow Jones Industrials (INDEX: ^DJI ) were down 78 points to 12,597, while the S&P 500 (INDEX: ^GSPC ) fell 4 points to 1,311.
Defense stocks took a hard hit despite posting earnings that beat estimates. Boeing (NYSE: BA ) was the biggest loser in the Dow, falling almost 3% even as it announced an $11.4 billion order for 100 of its 737 MAX aircraft and 22 Next-Generation 737-800s from Norwegian Air Shuttle. Meanwhile, United Technologies (NYSE: UTX ) also saw its shares drop more than 2% even after posting an 11% jump in fourth-quarter profits on a revenue increase of 1%. Both stocks are clearly suffering from the Obama administration's plans to cut military spending.
Bucking the downtrend was American Express (NYSE: AXP ) , which rose almost 1%. Even as fellow Dow financial stocks dropped in light of a downgrade of Goldman Sachs, AmEx seems to be recovering from concerns last week that falling credit quality could hamper its results in the near term.
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