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Transportation equipment industry

Stocks Plummet as Earnings Concerns and Global Economic Jitters Spread

Strategic Insights

— 1 min read

The stock market tumbled for a second consecutive day on Thursday, with concerns over earnings and economic stability weighing heavily on investor sentiment. The Dow Jones industrial average fell 81.87 points, or 0.9 percent, as a wave of pessimism swept through banks, technology, and auto companies. The market's decline was exacerbated by tumbling Latin American markets and threats of currency devaluations, which hit bank stocks and shares of major automakers, including Ford Motor Co. and General Motors Corp. Intel Corp. took a hit after Merrill Lynch analyst Thomas Kurlak downgraded the company, citing falling prices and ample supply of high-end computer chips.

Key Takeaways:

  • The Dow Jones industrial average dropped 81.87 points, or 0.9 percent, on Thursday, marking the second consecutive day of losses.
  • Earnings concerns and global economic jitters caused stocks to plummet, with banks, technology, and auto companies being particularly affected.
  • Latin American markets and threats of currency devaluations hurt bank stocks and shares of major automakers, including Ford Motor Co. and General Motors Corp.
  • Intel Corp. fell 3 9/16 to 86 after analyst Thomas Kurlak cut his long-term rating on the company, citing falling prices and ample supply of high-end computer chips.
  • National Semiconductor Corp. warned that its losses will widen in coming quarters due to weak demand for computer chips, causing its stock to drop 2 1/16 to 11 9/16.
  • LSI Corp. fell 11/16 to 15 1/8 after disappointing earnings news, with its stock dropping 20 percent over the past three days.

Statistics:

  • The Dow Jones industrial average fell 81.87 points, or 0.9 percent.
  • Intel Corp. stock dropped to 86, a loss of 3 9/16.
  • National Semiconductor Corp. stock fell to 11 9/16, a loss of 2 1/16.
  • LSI Corp. stock dropped 20 percent over the past three days.

Sources:

  • "Stocks fall; earnings concerns weigh heavily" by Bloomberg (no date mentioned)
  • "Dow falls for 2nd day on earnings concerns" by Reuters (no date mentioned)
  • "Intel, Texas Instruments Slide as Merrill Lynch Cuts Ratings" by Bloomberg (no date mentioned)

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