Companies’ earnings data sent the US stock market reeling Tuesday. The high probability of dismal first-quarter earnings and concerns about the general outlook of financial institutions put a crimp on the constant rise the market enjoyed last month.
The Dow dropped 2.34% or 186.29 points closing at 7,789.56. It breached the 8,000 level just last Friday. The Nasdaq composite dropped 45.10 points or 2.81% closing at 1,561.61. Standard & Poor 500 shed 2.39% or 19.93 points to close at 815.55.
Traders cite the bleak outlook of first quarter earnings as the cause for the market’s two-day losing streak. Dow component Alcoa, the aluminum giant, reported a $497 million net loss just for the first quarter continuing its losing trend from the last quarter of last year.
Wachovia Securities chief market strategist Al Goldman said, “The market is more vulnerable to the expected poor first-quarter earnings’ and disappointing management’ outlooks given the recent sharp advance in stocks.”
Source: AFP
