U.S. stocks down sharply after the open; Dow Jones tumbles 1.04%

Published 10/19/2010, 10:24 AM
NDX
-
UK100
-
FCHI
-
DJI
-
DE40
-
STOXX50
-
BAC
-
SOWGn
-
IBM
-
WDC
-
GC
-
Investing.com – U.S. stocks posted sharp losses after the open on Tuesday, as technology stocks led markets lower, after disappointing earnings from Apple and International Business Machines undermined investor sentiment.
 
During early U.S. trade, the Dow Jones Industrial Average tumbled 1.04%; the S&P 500 index dropped 1.06%, while the Nasdaq Composite index plunged 1.47%.

Tech giants Apple saw shares plummet 2.81% after the company reported that iPad sales were short of analysts’ projections, however fourth quarter earnings remained better-than-expected due to strong iPhone sales.

Elsewhere in the technology sector, shares in IBM tumbled 3.03% despite a 12% rise in third quarter profits, after the company said it signed 7% fewer service contracts during the quarter. IBM is the world's top technology-services supplier, and its long-term contracts provide a steady source of revenue.

Meanwhile, Microsoft saw its shares fall 2.67% after it was reported that the company’s chief software architect, Ray Ozzie was stepping down.

In the financial sector, global investment bank Goldman Sachs saw its shares rise 0.94% after reporting that third quarter earnings fell less-than-expected. But shares in rivals Bank of America tumbled 1.86% after it reported a third quarter loss of USD 7.3 billion, more than analysts expected.  

Search engine giant Yahoo and hard-drive manufacturer Western Digital were to release third quarter earnings reports after the closing bell.

Meanwhile, across the Atlantic, European stock markets were down: France’s CAC 40 shed 0.85%; Germany's DAX fell 0.42%; Britain's FTSE 100 decreased 0.67%; and the EURO STOXX 50 was down 0.57%.

Earlier in the day, official data showed that U.S. building permits fell unexpectedly in October while housing starts 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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.