Wednesday, October 24, 2012

Stocks lose steam on string of disappointing results – DD, UTX, AONE, MMM

Apple's launch of an entire range of products ranging from an iPad Mini to iMacs was not able to stop the stock sliding on Tuesday as weak and disappointing results continued.

The latest was from E I Du Pont De Nemours And Co(NYSE:DD) and United Technologies Corporation(NYSE:UTX) both of which showed that profit growth was slowing.

The benchmark Dow Jones Industrial Average saw the biggest drop in nearly four months as the earnings season continued its dismal run.

The Dow Jones Industrial Average (INDEXDJX:.DJI) slid 243.36 points, or 1.82 percent, to close at 13,102.53. The S&P 500(INDEXSP:.INX) fell 20.71 points, or 1.44 percent, to 1,413.11. The NASDAQ Composite (INDEXNASDAQ:.IXIC) dropped 26.49 points, or 0.88 percent, to end at 2,990.46.

Results in from 29 percent of S&P 500 companies have shown that 37 percent have exceeded revenue forecasts, far short of the 62 percent average, and just 57.2 percent of the S&P 500 names reporting so far have beaten earnings forecasts, according to Thomson Reuters data.

DuPont's stock lost 9.1 percent to $45.25 after the chemical company reported lower-than-expected quarterly profit and announced 1,500 job cuts.

The stock was responsible for a 33-point drag on the Dow, which ended down more than 240 points.

The S&P materials sector index fell 3 percent, largely because of DuPont.

DuPont, United Technologies and 3M Co (MMM) all cut their outlooks on Tuesday. Shares of elevator and air conditioner manufacturer United Technologies were down 1 percent at $77.07 while 3M shares were down 4.1 percent at $88.73.

Analysts said that while the earnings had expected to be weak still the mood was gloomy. Apple shares also fell 3.3 percent to $613.36 each.

A123 Systems, Inc.(NASDAQ:AONE) shares tumbled 14% to $0.162, after moving within wide range of $0.14 to $0.19. The stock has bounced back about 280% from its all time low of $0.05.

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