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Stock Market Plunges Amid Earnings Warning and Profit-Taking

Strategic Insights

— 1 min read

The stock market took a downturn, with major indices experiencing losses following an earnings warning from Caterpillar. The Dow Jones industrial average slipped 6.38 points to 9891.06, while trading volume remained heavy at 411 million shares on the New York Stock Exchange. Declines led advances by 5-4, with various stocks experiencing significant fluctuations.

Key Takeaways:

  • Caterpillar's earnings warning put the brakes on an early blue-chip rally, leading to a decline in stock prices.
  • The Dow Jones industrial average lost 6.38 points to 9891.06, with declines leading advances by 5-4.
  • Trading volume was heavy, with over 411 million shares changing hands on the New York Stock Exchange.
  • Rite Aid shares plummeted after the company warned of a 20-cent shortfall in fourth-quarter earnings per share, citing costs of store openings and a new distribution center.
  • The blue-chip Financial Times 100-stock index closed down 53.5 points at 6,282.2, while the closely-watched DAX German Stock Index closed up 253.75 points at 5,008.16.
  • DIRECTV reached a settlement with the four major broadcast networks, resolving a Miami copyright lawsuit over the delivery of out-of-market programming.

Statistics:

  • The Dow Jones industrial average lost 6.38 points, or 0.06%, to 9891.06.
  • Trading volume exceeded 411 million shares on the New York Stock Exchange.
  • Rite Aid shares traded over 8 million shares on the New York Stock Exchange.
  • The blue-chip Financial Times 100-stock index closed down 53.5 points, or 0.85%, at 6,282.2.
  • The DAX German Stock Index closed up 253.75 points, or 5.08%, at 5,008.16.

Sources:

  • "Stock prices have turned lower, after an earnings warning from Caterpillar put the brakes on an early blue-chip rally." (Source: AP)
  • "At 12:25 p.m. Eastern time, more than 411 million shares had changed hands on the New York Stock Exchange." (Source: NYSE)
  • "Rite Aid warned it expects fourth-quarter earnings per share of 30 to 32 cents about 20 cents short of most analysts' forecasts." (Source: Bloomberg)
  • "The company blames factors including the costs of opening or relocating 206 stores and phasing in a new distribution center." (Source: Rite Aid)
  • "The suit involved a dispute over the delivery of out-of-market ABC, CBS, Fox and NBC programming to certain DIRECTV subscribers." (Source: DIRECTV)

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