Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

U.S. stocks lower after the open; Dow Jones sheds 0.97%

Published 10/27/2010, 10:51 AM
NDX
-
UK100
-
FCHI
-
DJI
-
DE40
-
STOXX50
-
CVX
-
AA
-
CL
-
SCOP
-
Investing.com – U.S. stocks were lower after the open on Wednesday, amid speculation over the scope of additional monetary easing by the Federal Reserve, while disappointing earnings reports led markets lower.

During early U.S. trade, the Dow Jones Industrial Average was down 0.97%; the S&P 500 index fell 0.84%, while the Nasdaq Composite index was down 0.28%.

Investor confidence was undermined after a Wall Street Journal report late Tuesday said that the Fed was likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, contrary to market expectations of purchases in excess of USD 1 trillion.

Meanwhile, in earnings news, shares in wireless service provider Sprint tumbled 10.17% after it reported a third-quarter net loss of USD 911 million, compared to a loss of USD 478 million in the year-earlier period. The company also said that they lost 107,000 customers in the third quarter.  

Elsewhere, shares in appliance retailer Whirlpool plunged 5.87% after the company said its third-quarter net income dropped 9.2% to USD 79 million dollars, down from USD 87 million from a year-earlier.

But shares in semiconductor manufacturer Broadcom soared 8.70% after the company reported that third-quarter net income rose to USD 327 million, compared to USD 85 million from a year-earlier. 

Elsewhere, shares in the commodity sector slumped as a stronger U.S. dollar weighed crude oil and metal prices. Shares in oil and gas giant Exxon-Mobile tumbled 1.52%, rivals Chevron saw shares fall 1.30%, while shares in the world’s largest aluminum producer Alcoa plunged 1.71%.

Meanwhile, across the Atlantic, European stock markets were down: France’s CAC 40 dropped 0.65%; Germany's DAX fell 0.49%; Britain's FTSE 100 tumbled 0.93%; and the EURO STOXX 50 was down 0.62%.

Earlier in the day, official U.S. data showed that new home sales rose-more-than-expected in September, while a separate report showed core durable goods orders fell unexpectedly in September while durable goods orders rose more-than-expected. 



Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.