Stock market falls as firms fail to meet heightened expectations
U.S. stocks fell on Wednesday as earnings reports released today failed to beat heightened expectations amid a solid earnings season.
The broad market continued to fall, despite a better than expected employment data reported this morning. Most consumer services and consumer goods stock continue to plunge.
The S&P 500 Index was down 8.69 points, or 0.79 percent, to trade at 1,094.63 at 12:26 p.m. EST. The Dow Jones Industrial Average lost 55.32 points, or 0.54 percent, to trade at 10,241.53.
Some of the biggest decliners of the S&P 500 Index reported earnings this morning or yesterday after the market closed. Polo Ralph Lauren (NYSE:RL) is down 9.42 percent, C.H. Robinson (NASDAQ:CHRW) dropped 5.89 percent, Ryder System (NYSE:R) dropped 9.48 percent, and the International Paper Company (NYSE:IP) dropped more than 6.62 percent.
Although Polo Ralph Lauren met expectations for earnings, revenues were less than estimates. Other apparel retailers such as J. Crew (NYSE:JCG), Guess? (NYSE:GES), and Liz Claiborne (NYSE:LIZ) have all declined at least 3.50 percent.
International Paper Company (NYSE:IP) beat earnings estimates, but its revenues declined more than 7 percent. Including one time charges, the company reported a loss of $0.24 per share. The largest paper companies in the U.S. and abroad have plunged along with International Paper.
Pfizer (NYSE:PFE), the biggest decliner of the Dow Jones Industrial Average, missed estimates this morning. It is trading down 3.04 percent. Other companies in the sector also fell. Bristol Myers (NYSE:BMY) dropped 1.82 percent and Merck (NYSE:MRK) slipped 2.02 percent.
U.S. regional banks and companies related to metals are also among the biggest decliners.
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