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U.S. stocks plunge on earnings uncertainty; Dow drops 1.35%

Published 10/13/2014, 04:43 PM
Updated 10/13/2014, 04:48 PM
Stocks take a nose dive as investors jump to sidelines ahead of
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Investing.com - U.S. stocks tumbled on Monday amid ongoing fears that a cooling global economy will water down U.S. third-quarter earnings.

At the close of U.S. trading, the Dow 30 fell 1.35%, the S&P 500 index fell 1.65%, while the NASDAQ Composite index fell 1.46%.

The Volatility S&P 500 index, which measures the outlook for market volatility, was up 16.01% at 24.64.

Wall Street stocks took fresh beatings on Monday amid fears softening European and Asian economies could slow U.S. business concerns overseas.

Later this week, Google, General Electric, JPMorgan Chase and many other big companies are due to release third-quarter earnings, and investors jumped to the sidelines on Monday ahead of time, which sent broad stock indices falling.

In the U.S. on Friday, data revealed that import prices fell 0.5% in September from August, better than market calls for a 0.7% contraction, though still a decline nonetheless, a sign a stronger dollar and a softer global economy could hurt U.S. businesses with overseas exposure.

Leading Dow Jones Industrial Average performers included Visa Inc (NYSE:V), which was down 0.40%, The Travelers Companies Inc (NYSE:TRV), down 0.56%, and J P Morgan Chase & Co (NYSE:JPM), down 0.60%.

The Dow Jones Industrial Average's worst performers included Merck & Company Inc (NYSE:MRK), down 4.36%, Walt Disney Company (NYSE:DIS), down 2.74%, and American Express Company (NYSE:AXP), down 2.64%.

European indices, meanwhile, ended the day higher.

After the close of European trade, the DJ Euro Stoxx 50 rose 0.23%, France's CAC 40 rose 0.12%, while Germany's DAX rose 0.27%. Meanwhile, in the U.K. the FTSE 100 rose 0.41%.

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