Stocks Tumbled at the Open on Earnings
U.S. stocks began with sharp declines on Tuesday as weaker quarterly earnings spurred concerns about the global economy. The Dow Jones Industrial Average lately shed 176.70 points, or 1.32%, to 13,169.19. The S&P 500 index lost 18.41 points, or 1.28%, to 1,415.41. The Nasdaq Composite declined 30.50 points, or 1.01%, to 2,986.46.
3M Co. (MMM) is reducing its profit expectations for this year because of what it calls “current economic realities.” The company now expects to earn $6.27 to $6.35 per share for the year, versus its previous expectation for a profit of $6.35 to $6.50.
DuPont (DD) reported quarterly earnings and revenue on Tuesday that fell short of analysts’ expectations. The company posted third-quarter earnings excluding items of 44 cents per share, down from 69 cents a share in the year-earlier period. Revenue fell to $7.34 billion from $9.24 billion a year ago.
United Parcel Services (UPS) reported third-quarter earning on Tuesday in line with estimates. The company reported third-quarter earnings excluding items of $1.06 a share, flat with last year’s results. Revenue fell slightly to $13.07 billion from $13.17 billion a year ago.
United Technologies (UTX) reported quarterly earnings that topped analysts’ forecasts, but revenues which disappointed the market. The company delivered third-quarter earnings excluding items of $1.37 per share, down from $1.47 a share in the year-earlier period. Revenue increased to $15 billion from $14.80 billion a year ago.
Xerox Corp.’s (XRX) third-quarter profit shrank 12% as sales from the printing and services company’s technology segment continued to wane. Xerox Corp.’s third-quarter profit shrank 12% as sales from the printing and services company’s technology segment continued to wane. Xerox reported a profit of $282 million, or 21 cents a share, down from $320 million, or 22 cents, a year earlier. Revenue fell 2.9% to $5.42 billion.
Coach Inc.’s (COH) fiscal first-quarter earnings rose 3% as a jump in international sales helped to keep its margins flat with the year-earlier period.For the quarter ended Sept. 29, Coach reported a profit of $221.4 million, or 77 cents a share, up from $215 million, or 73 cents, a year earlier. Sales jumped 11% to $1.16 billion.
RadioShack Corp.(RSH) swung to a wider-than-expected third-quarter loss as the electronics retailer’s same-store sales declined and margins shrank. RadioShack reported a loss of $47.1 million, or 47 cents a share, compared with a profit of $300,000, or less than a penny, a year earlier. Revenue decreased 3.1% to $1 billion.