Wall Street Declines as Investors Worry About Earnings Sentiment

Strategic Insights -

Wall Street continued its downward trend on Tuesday, with investors growing concerned that corporate earnings will not be strong enough to boost market sentiment. The decline came despite the upcoming earnings season, which is set to begin with Alcoa Inc.'s report on Wednesday. Analysts estimate that profits at S&P 500 companies fell an average of 34 percent in the second quarter. The Dow Jones industrial average dropped 1.94 percent, while the S&P 500 fell 1.97 percent, and the Nasdaq Composite Index declined 2.31 percent.

Key Takeaways:

  • The Dow Jones industrial average declined by 161.27 points, or 1.94 percent, to 8,163.60 on Tuesday.
  • The S&P 500 fell 17.69 points, or 1.97 percent, to 881.03 on Tuesday.
  • Analysts estimate that profits at S&P 500 companies fell an average of 34 percent in the second quarter.
  • Exxon Mobil Corp. and Chevron Corp. continued to fall on Tuesday, following a fifth straight day of oil price drops.
  • Intel Corp., the world's largest chipmaker, helped lead gains in semiconductor companies, thanks to a Bank of America Corp. upgrade.
  • The U.S. government conducted a 35 billion U.S. dollars sale of three-year notes on Tuesday afternoon.
  • A member of the Obama administration's economic advisory panel suggested that the United States may need to provide a second round of stimulus funds to prop up the economy.

Statistics:

  • The Dow Jones industrial average declined by 161.27 points.
  • The S&P 500 fell 17.69 points.
  • Analysts estimate that profits at S&P 500 companies fell an average of 34 percent in the second quarter.
  • The Dow Jones industrial average was down 1.94 percent.
  • The S&P 500 was down 1.97 percent.
  • The Nasdaq Composite Index was down 2.31 percent.
  • Oil prices dropped for a fifth straight day on Tuesday.
  • The U.S. government conducted a 35 billion U.S. dollars sale of three-year notes.

Sources:

  • Xinhua News Agency
  • COMTEX via SmarTrend Alert
  • Comtex News Network, Inc.
  • Bank of America Corp.
  • United States government
  • Obama administration's economic advisory panel