U.S. stocks fell sharply in morning trading Wednesday, adding to losses from a day earlier. Technology and internet companies and banks took the heaviest losses. Investors bid up shares in utilities, real estate companies and other high-yield stocks. Homebuilders declined after the government said sales of new U.S. homes declined in September for the fourth straight month.
KEEPING SCORE: The S&P 500 fell 33 points, or 1.2 percent, to 2,706 as of 11:35 a.m. Eastern Time. The Dow Jones Industrial Average lost 245 points, or 1 percent, to 24,946. The Nasdaq slid 131 points, or 1.8 percent, to 7,306. The Russell 2000 index of smaller-company stocks gave up 17 points, or 1.1 percent, to 1,509.
EARNINGS SPREE: Investors were weighing the latest batch of company results in the busiest week of the quarterly earnings calendar. While S&P 500 companies are expected to deliver 21.9 percent earnings growth for the third quarter, according to S&P Global Market Intelligence, investors are concerned about future growth amid rising inflation, interest rates and uncertainty over trade. Some companies, including Caterpillar and 3M, have reported disappointing results and warned of rising costs related to tariffs related to the U.S.-China trade dispute. Among the big companies slated to release quarterly results this week are Microsoft, Amazon and Colgate-Palmolive.
TARIFFS TROUBLE: Shares in iRobot gave up 12.8 percent to $80.05 percent after the robotics technology company said tariffs will reduce its profitability in the fourth quarter.
DOES NOT COMPUTE: Texas Instruments fell 4.9 percent to $95.35 after the chipmaker delivered quarterly results that fell short of Wall Street’s forecasts.
BOTCHED DELIVERY: United Parcel Service slid 3.8 percent to $109.85 after the shipping company reported weak international revenue, while the strong dollar and high fuel prices also hurt its results.
HOUSING SKID: The Commerce Department said sales of new U.S. homes plunged 5.5 percent in September, the fourth monthly drop. The report is the latest sign that the housing market is cooling amid rising mortgage rates. Several homebuilders declined following the release of the report. Beazer Homes USA slumped 4.8 percent to $8.77.
HIGH FLYER: Boeing rose 0.7 percent to $352.58 after the defense contractor’s latest quarterly results topped analysts’ forecasts. The company also raised its estimates for the year, citing faster orders for aircraft.
BOND YIELDS: Bond prices rose, sending the yield on the 10-year Treasury note down to 3.12 percent from 3.16 percent late Tuesday.
ENERGY: Crude oil prices were headed higher Wednesday, clawing back part of a sharp decline a day earlier. Benchmark U.S. crude added 1 percent to $67.08 per barrel in New York. Brent crude, used to price international oils, gained 0.3 percent to $76.67 per barrel in London.
The pickup in oil prices helped lift energy stocks. Anadarko Petroleum gained 1.2 percent to $61.10.
CURRENCIES: The dollar weakened to 112.42 yen from 112.47 yen on Tuesday. The euro fell to $1.1395 from $1.1467.
MARKETS OVERSEAS: Major indexes in Europe were trading higher. Germany’s DAX added 0.4 percent, while the CAC 40 in France rose 1 percent. Britain’s FTSE 100 picked up 0.9 percent. Japan’s Nikkei 225 index rose 0.4 percent after a private survey pointed to a recovery in manufacturing in October. Hong Kong’s Hang Seng index dropped 0.4 percent and the Kospi in South Korea gave up 0.4 percent.
