Tech profits slump hits Wall Street
Stocks have fallen for the fourth straight day following a profit slump at technology companies and a steep decline in oil prices, which sent energy stocks sharply lower.The Dow Jones industrial average fell 83.17 points to close at 12,653.12. Aluminium maker Alcoa was the biggest loser in the Dow, giving up 4% after reporting a slump in revenue late Monday.
The broader Standard & Poor's 500 lost 10.99 points to 1,341.47. The index is in its longest slump since May 18.
Chip-maker Advanced Micro Devices fell sharply after reporting that a slowdown in China and Europe led to an 11% drop in second-quarter revenue. The company had previously forecast a gain of 3%. That news sent other technology stocks down hard. The tech-heavy Nasdaq composite dropped 1%, the most of the three major indexes. It closed 29.44 points lower at 2,902.33.
The bad news outweighed hopeful developments in Europe earlier in the day. Before US markets opened, European finance ministers announced they had agreed on the terms of a bailout for Spain's banks. The first instalment of 37 billion dollars in aid can be ready by the end of the month.
Investors were concerned that some details seemed to be missing from the plan.
Also weighing on the market: worries about a spate of upcoming corporate earnings reports. Financial analysts expect that earnings at companies in the S&P 500 fell 2% in the April-through-June period compared with a year ago, according to S&P Capital IQ. That would be the first drop in nearly three years.
A resolution to a labour dispute in Norway early on Friday weighed on oil prices, which pushed energy stocks lower. Earlier, the Norwegian government intervened to end a strike that threatened North Sea oil production.
Benchmark crude oil fell 2.08 dollars to 83.91 dollars a barrel in New York. Major energy companies dropped as a result, including Occidental Petroleum and ConocoPhillips.
Also weighing on commodities was a report from China that import growth fell in half in June from May, a signal its economy may be slowing more than expected. The Chinese economy, the world's second biggest, is growing at its slowest pace since the 2008 financial crisis.
Investors were concerned that some details seemed to be missing from the plan.
Also weighing on the market: worries about a spate of upcoming corporate earnings reports. Financial analysts expect that earnings at companies in the S&P 500 fell 2% in the April-through-June period compared with a year ago, according to S&P Capital IQ. That would be the first drop in nearly three years.
A resolution to a labour dispute in Norway early on Friday weighed on oil prices, which pushed energy stocks lower. Earlier, the Norwegian government intervened to end a strike that threatened North Sea oil production.
Benchmark crude oil fell 2.08 dollars to 83.91 dollars a barrel in New York. Major energy companies dropped as a result, including Occidental Petroleum and ConocoPhillips.
Also weighing on commodities was a report from China that import growth fell in half in June from May, a signal its economy may be slowing more than expected. The Chinese economy, the world's second biggest, is growing at its slowest pace since the 2008 financial crisis.
© 2013 Press Association