Earnings reports spook investors
Dow takes 243-point dive amid news of low revenue
NEW YORK — Nobody was expecting this round of corporate financial reports to be great. But underwhelming results — particularly revenue, which offers a read on the economy — are still rattling investors.
The Dow Jones industrial average plunged Tuesday to its lowest level in nearly seven weeks. Big-name companies reported weak quarterly revenue and lowered their forecasts for the rest of the year.
Since the end of the Great Recession, investors have rewarded companies for increasing profit, even if revenue growth has been unimpressive. And companies have turned in three years of growing profit.
But companies can squeeze profit many ways, including cost-cutting, and revenue offers a truer read on customer demand. That is on investors' minds as the world economy lumbers along.
And even the profit streak may be over. Financial analysts predicted that profit would fall at S&P 500 companies for July through September compared with the year before, which would end a three-year streak.
On Tuesday, the Dow sank as much as 262 points, or roughly 2 percent, before ending the day down 243.36 points to 13,102.53. The decline was the Dow's third-steepest this year.
Other indexes also fell sharply. The Standard & Poor's 500 index shed 20.71 points to 1,413.11, and the Nasdaq composite index lost 26.50 points to 2,990.46. The Nasdaq hadn't closed below 3,000 since Aug. 6.
- Jobless claims drop to near 6-year low
- Fast-food strikes return amid push for wage...
- Sugar House streetcar prepares for public launch
- 3,000 Workforce Services clients may be...
- 4 charged in year-long copper thefts at Utah...
- Walmart's 20 best-selling Black Friday items
- Children's museum celebrates 35 years of play
- Start thinking about retirement while in your...
- Fast-food strikes return amid push for... 31
- Obama declares health care law is... 21
- Intermountain Healthcare offering... 15
- Start thinking about retirement while... 7
- Jobless claims drop to near 6-year low 7
- Obama to feds: Boost renewable power 20... 6
- Amazon's latest idea may make online... 6
- Walmart's 20 best-selling Black Friday... 5