Wall Street plunges after opening - New York News

Wall Street plunges after opening

Posted: Updated:

Stocks opened sharply lower Tuesday, driving major indexes to their lowest point since early September, after big-name companies reported weak quarterly earnings and lowered their expectations for the rest of the year.

The Dow Jones industrial average sank 245 points, or 1.8 percent, to 13,100 in the first hour of trading. The Standard & Poor's 500 index fell 24 points to 1,409. The Nasdaq composite index was off 39 points at 2,977.

The day was shaping up to be among the worst of the year on Wall Street. The Dow's biggest decline was 274 points, on June 1.

3M, which makes everything from Scotch tape to coatings for LCD screens and is an economic bellwether, reduced its profit expectations for this year because of "current economic realities."

Chemical maker DuPont said it will cut 1,500 jobs and take other steps to increase competitiveness after earnings fell sharply last quarter. UPS reported lower earnings and said it was uncertain about the holiday shopping season.

Xerox plunged 8 percent, or 56 cents, to $6.47. Xerox's income dropped 12 percent in the third quarter following steep declines in sales for equipment, supplies and related products. The stock is off 19 percent so far this year.

Some of the disappointing revenue is because of weakness in foreign markets. Multinational companies are having a hard time selling to Europe, which is struggling under a debt crisis and a spreading recession.

The red-hot growth enjoyed by emerging markets like China and India is also slowing, and many businesses that had relied on growth there to offset weak U.S. consumer demand are being forced to come up with new strategies.

"The recession in Europe is very real," said Bernard Schoenfeld, senior investment strategist for Bank of New York Mellon Wealth Management in New York. "It's not going to disappear very quickly, and it will certainly negatively affect earnings of exporters in the United States."

Financial analysts have predicted that earnings for S&P 500 companies for July through September would be lower than the year before, breaking a three-year winning streak.

There was more bad news on manufacturing Tuesday from one of the regional branches of the Federal Reserve.

The Federal Reserve Bank of Richmond, Va., reported that manufacturing in the central Atlantic region "pulled back" in October following a slight improvement the month before. Manufacturers were also less optimistic about the next six months.

The price of crude oil fell $2.41 per barrel to $86.24. And as investors sold stocks, they bought bonds, driving yields lower. The yield on the benchmark 10-year U.S. Treasury note sank to .76 percent from 1.82 percent Monday.

Among individual stocks, 3M and DuPont were among the worst performers. DuPont plunged $4.15, or 8.3 percent, to $45.61. 3M was down $2.37, or 2.6 percent, at $90.16.

Apple fell $6 to $628 ahead of the expected release of a smaller version of its iPad. Apple has the most sway among stocks in the S&P 500 and the Nasdaq composite and helped drive those indexes lower.

Materials stocks and energy companies fell the most in the broader market, each losing more than 2 percent.

Among other stocks making news:

-- Xerox plunged 56 cents, or 8 percent, to $6.47. Xerox's income dropped 12 percent in the third quarter following steep declines in sales for equipment, supplies and related products. The stock is off 19 percent so far this year.

 

-- Yahoo jumped 80 cents, or 5 percent, to $16.57, making it one of the handful of winners in the S&P 500. The company's first earnings report under Marissa Mayer as CEO easily beat the forecasts of Wall Street analysts. Yahoo hired Mayer from Google in July to orchestrate its latest turnaround attempt.

  • Your MoneyMore>>

  • Doctors making 'house calls' via app

    Doctors making 'house calls' via app

    Thursday, July 31 2014 10:15 PM EDT2014-08-01 02:15:42 GMT
    Even when it's a simple stomach ache, many of us look to the web for answers. Now, a licensed doctor can diagnose patients through the online service called HealthTap. Patients have been able to type in questions and get answers for free from 62,000 doctors. But now, patients can have live video conferences with doctors for $99 a month, plus $10 for every additional family member.
    Even when it's a simple stomach ache, many of us look to the web for answers. Now, a licensed doctor can diagnose patients through the online service called HealthTap. Patients have been able to type in questions and get answers for free from 62,000 doctors. But now, patients can have live video conferences with doctors for $99 a month, plus $10 for every additional family member.
  • Road-trip vacations that don't break the bank

    Road-trip vacations that don't break the bank

    Thursday, July 31 2014 5:37 PM EDT2014-07-31 21:37:29 GMT
    Last-minute vacations don't need to be a headache or ridiculously expensive, especially if you make it a road trip. Even if you don't have a car, renting one can be an affordable option.Lauren Lyons Cole, a personal finance contributor to TheStreet.com, has some suggestions.
    Last-minute vacations don't need to be a headache or ridiculously expensive, especially if you make it a road trip. Even if you don't have a car, renting one can be an affordable option.Lauren Lyons Cole, a personal finance contributor to TheStreet.com, has some suggestions.
  • OKCupid, Facebook not alone in studying consumers

    OKCupid, Facebook not alone in studying consumers

    Tuesday, July 29 2014 4:51 PM EDT2014-07-29 20:51:44 GMT
    Think you're in control? Think again. This week, OKCupid became the latest company to admit that it has manipulated customer data to see how users of its dating service would react to one another. The New York-based Internet company's revelation follows news earlier this month that Facebook let researchers change news feeds to see how it would affect users' moods.
    Think you're in control? Think again. This week, OKCupid became the latest company to admit that it has manipulated customer data to see how users of its dating service would react to one another. The New York-based Internet company's revelation follows news earlier this month that Facebook let researchers change news feeds to see how it would affect users' moods.
  • Local NewsLocal NewsMore>>

  • 'Get on Up' and James Brown's Harlem legacy

    'Get on Up' and James Brown's Harlem legacy

    Friday, August 1 2014 5:55 PM EDT2014-08-01 21:55:13 GMT
    "Get on Up" is in theaters now. The film chronicles the career of James Brown, who had a special connection to Harlem and New York. Billy Mitchell is the in-house historian at the historic Apollo Theater. He says the Apollo was a second home to Brown, as it was here where he became an international superstar who appealed to all. But Brown's NYC legacy stretches even further.
    "Get on Up" is in theaters now. The film chronicles the career of James Brown, who had a special connection to Harlem and New York. Billy Mitchell is the in-house historian at the historic Apollo Theater. He says the Apollo was a second home to Brown, as it was here where he became an international superstar who appealed to all. But Brown's NYC legacy stretches even further.
  • Dog found in abandoned home cleaned up and adopted

    Dog found in abandoned home cleaned up and adopted

    Friday, August 1 2014 5:51 PM EDT2014-08-01 21:51:00 GMT
    A 6-year-old Shih Tzu mix that was found in an abandoned home in Lindenhurst two weeks ago now has a new home with a new family. Ziggy has been has been cleaned up and has undergone physical therapy. Babylon town employees took three and a half hours to remove nearly four pounds of matted hair after they found him. Ziggy's fur was so matted and his nails so overgrown that he could barely walk.
    A 6-year-old Shih Tzu mix that was found in an abandoned home in Lindenhurst two weeks ago now has a new home with a new family. Ziggy has been has been cleaned up and has undergone physical therapy. Babylon town employees took three and a half hours to remove nearly four pounds of matted hair after they found him. Ziggy's fur was so matted and his nails so overgrown that he could barely walk.
  • Massive emergency drill in New York City

    Massive emergency drill in New York City

    Friday, August 1 2014 5:14 PM EDT2014-08-01 21:14:45 GMT
    The New York City Department of Health conducted a massive emergency preparedness drill at 30 facilities across the city on Friday. They tested the delivery of emergency medications in the event of a biological attack, such as anthrax, or other large-scale public health emergency in the city. The majority of the deliveries will take place to public school buildings.
    The New York City Department of Health conducted a massive emergency preparedness drill at 30 facilities across the city on Friday. They tested the delivery of emergency medications in the event of a biological attack, such as anthrax, or other large-scale public health emergency in the city. The majority of the deliveries will take place to public school buildings.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices