U.S. Stocks Slump Amid Shrinking Revenue from Dow Components
U.S. stocks edged lower during early trading session on Tuesday after several Dow Components reported contraction in quarterly revenue, even as disappointing quarterly earnings from Asia and Europe knocked-off the market sentiment.
About 15 minutes after the morning bell ring, the Dow Jones Industrial Average Index tumbled 1.38% to 13162.02, the Nasdaq Composite Index plunged 1.16% to 2982.01 while the S&P 500 Index lost 1.37% to 1414.14
Diversified technology company, 3M Co. (NYSE: MMM) edged down in early trading after the company reported lighter than expected revenue even as earnings were in line with Street’s estimations. The company also downwardly revised its outlook on full-year results as margins are expected to be under pressure due to firmer dollar.
DuPont (NYSE: DD) slumped over 7 percent in early trading after the chemical giant reported lighter-than-expected earnings and announced its plans of cutting 1500 jobs in coming months, aimed at improving its competitiveness.
Shares of electronic goods retail chain, RadioShack Corporation (NYSE: RSH) fell nearly 2% in early trading after the company quarterly results missed analysts’ expectations by wide margins.
United Technologies (NYSE: UTX) was nearly flat in early trading after the company reported better-than-expected earnings but revenue fell short of expectations.
Later in the evening, (after the closing bell ring), Facebook Inc. (NASDAQ: FB) and Netflix Inc. (NASDAQ: NFLX) are due to announce quarterly results.
In Europe, all leading benchmark indexes traded in red zone as market sentiment was dented by weak earnings results and further deteriorating of Spain’s economy. According to Spain’s central bank, the economy in the fiscal third quarter contracted by 1.7%, after shrinking 1.3% in the second quarter.
Also adding to woes was the business confidence index in France, which fell to three years low level in October.
In some other markets, crude oil futures plunged 1.91% to $86.97 a barrel while U.S. gold futures for December delivery edged down 0.71% to $1,714 an ounce.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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