Investing.com - U.S. stocks were lower on Tuesday, as sustained concerns over the handling of the financial crisis in the euro zone and downbeat earnings reports weighed on market sentiment.
During early U.S. trade, the Dow Jones Industrial Average dropped 0.76%, the S&P 500 index fell 0.56%, while the Nasdaq Composite index declined 0.76%.
Market sentiment weakened on Monday, after Germany's finance minister Wolfgang Schaeuble said the upcoming European summit on October 23 would not result in a definitive solution to the euro zone's financial crisis.
Concerns also grew after official data on Tuesday revealed a slowdown in Chinese growth as the country's gross domestic product ticked down to 9.1% in the third quarter, from 9.5% the previous quarter.
In earnings, software giant IBM saw shares plummet 4.51%, after the tech giant's revenue barely met forecasts, underscoring fears over slower IT spending. The company still beat earnings expectation and increased its 2011 EPS outlook.
Also in the technology sector, shares in Intel dropped 0.52% and Apple declined 0.30%, ahead of the release of both companies' third quarter earnings, due after markets close.
Elsewhere, Coca Cola shares declined 0.60% although the beverage giant posted earnings beating estimates by a penny, as sales increased internationally, while Boeing declined 0.31% as it predicted more sales cancellations for its Dreamliner 787, after a Chinese airline scrapped 24 orders.
On the upside, the financial sector posted strong gains after a number of highly anticipated earnings reports. Bank of America saw shares surge 3.32% after it reported earnings of 56 cents per share on revenue of USD28.7 billion, both well above expectations.
Goldman Sachs was up 0.26%, despite reporting worse-than-expected quarterly losses. Goldman Sachs' USD393 million loss in the third quarter marked its first quarterly loss since 2008, and was spurred by a 33% drop in investment banking revenue.
Meanwhile, shares in JP Morgan Chase climbed 1% and Citigroup rose 0.97%.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.16%, France’s CAC 40 plunged 1.59%, Germany's DAX dropped 0.25%, while Britain's FTSE 100 posted a 1.06% decline.
During the Asian trading session, Hong Kong's Hang Seng Index plunged 4.7%, while Japan’s Nikkei 225 Index dropped 1.55%.
Also Tuesday, a U.S. government report showed that producer price inflation rose more-than-expected in September, climbing 0.8% from a flat reading the previous month. Analysts had expected producer price inflation to rise 0.2% in September.
Later in the day, Federal Reserve Chairman Ben Bernanke was due to speak at the central bank's 56th Economic Conference, in Boston.
During early U.S. trade, the Dow Jones Industrial Average dropped 0.76%, the S&P 500 index fell 0.56%, while the Nasdaq Composite index declined 0.76%.
Market sentiment weakened on Monday, after Germany's finance minister Wolfgang Schaeuble said the upcoming European summit on October 23 would not result in a definitive solution to the euro zone's financial crisis.
Concerns also grew after official data on Tuesday revealed a slowdown in Chinese growth as the country's gross domestic product ticked down to 9.1% in the third quarter, from 9.5% the previous quarter.
In earnings, software giant IBM saw shares plummet 4.51%, after the tech giant's revenue barely met forecasts, underscoring fears over slower IT spending. The company still beat earnings expectation and increased its 2011 EPS outlook.
Also in the technology sector, shares in Intel dropped 0.52% and Apple declined 0.30%, ahead of the release of both companies' third quarter earnings, due after markets close.
Elsewhere, Coca Cola shares declined 0.60% although the beverage giant posted earnings beating estimates by a penny, as sales increased internationally, while Boeing declined 0.31% as it predicted more sales cancellations for its Dreamliner 787, after a Chinese airline scrapped 24 orders.
On the upside, the financial sector posted strong gains after a number of highly anticipated earnings reports. Bank of America saw shares surge 3.32% after it reported earnings of 56 cents per share on revenue of USD28.7 billion, both well above expectations.
Goldman Sachs was up 0.26%, despite reporting worse-than-expected quarterly losses. Goldman Sachs' USD393 million loss in the third quarter marked its first quarterly loss since 2008, and was spurred by a 33% drop in investment banking revenue.
Meanwhile, shares in JP Morgan Chase climbed 1% and Citigroup rose 0.97%.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.16%, France’s CAC 40 plunged 1.59%, Germany's DAX dropped 0.25%, while Britain's FTSE 100 posted a 1.06% decline.
During the Asian trading session, Hong Kong's Hang Seng Index plunged 4.7%, while Japan’s Nikkei 225 Index dropped 1.55%.
Also Tuesday, a U.S. government report showed that producer price inflation rose more-than-expected in September, climbing 0.8% from a flat reading the previous month. Analysts had expected producer price inflation to rise 0.2% in September.
Later in the day, Federal Reserve Chairman Ben Bernanke was due to speak at the central bank's 56th Economic Conference, in Boston.