Tuesday, May 17, 2011

Wall Street Drops On Earnings Worries, Alcoa (NYSE: AA) Slumps

US stocks finished lower on Monday as downbeat corporate earnings spooked investors.

The Dow Jones Industrial Average dropped 68.95 points, or 0.55%, to finish at 12,479.42. The S&P 500 slipped 0.49 points, or 0.04%, to close at 1,328.98. The Nasdaq Composite rose 0.90 points, or 0.03%, to 2,783.21.

The Commerce Department reported Tuesday that housing starts slumped a worse-than-expected 10.6% in April. 

Maanwhile, the Federal Reserve said industrial production was flat in April due in part to the Japanese earthquake. Economists were expecting a gain in the industrial production figures.

Wal-Mart Stores Inc. (NYSE: WMT) said Tuesday that its fiscal first-quarter profit rose to $3.4 billion, or 97 cents a share, from $3.3 billion, or 87 cents, in the prior-year quarter. Revenue increased 4.4% to $103.4 billion.  Analysts, on average, expected Wal-Mart to earn 94 cents a share on revenue of $102.8 billion. Shares of the retail giant declined 60 cents, or 1.07%, to $55.46.

Home Depot Inc., (NYSE: HD) reported that its fiscal first-quarter net income increased 12% to $812 million, or 50 cents a share, from $725 million, or 43 cents, in the year-ago quarter. Analysts, on average, expected the company to report earnings of 49 cents per share on revenue of $17.02 billion. Shares of the home improvement retailer rose 41 cents, or 1.11%, to $37.39.

Hewlett-Packard Co. (NYSE: HPQ) reported Tuesday that its fiscal second-quarter profit rose slightly to $2.3 billion, or $1.05 a share, from $2.2 billion, or 91 cents a share, in the year-earlier quarter. On an adjusted basis, the company earned $1.24 a share in the latest quarter. Revenue increased by about 3% to $31.63 billion from $30.85 billion. Shares of the pc maker sank $2.95, or 7.41%, to close at $36.85.

Shares of Alcoa Inc. (NYSE: AA) slid 47 cents, or 2.78%, to close at $16.45.

European stocks closed down. The UK FTSE fell 62.69 points, or 1.06% to 5,861. The German DAX and French CAC declined 1.77% and 1.21% respectively.

Asian stocks finished mixed. The Nikkei 225 rose 8.72 points, or 0.09%, to 9,567.02. The Hang Seng index of Hong Kong dropped 59.55 points, or 0.26%, to 22,9901.08.

Full Disclosure: None.
Related Posts with Thumbnails

Wikinvest Wire