Weak corporate results pummel stocks
The Dow Jones industrial average plunged Tuesday to its lowest level in nearly seven weeks. Big-name companies reported weak quarterly revenue and lowered their forecasts for the rest of the year.
The Dow sank as much as 262 points, or 2 percent, before ending the day down 243.36 points to 13,102.53. It was the third-steepest decline this year.
Other indexes also fell sharply. The Standard & Poor's 500 index was down 1.44 percent to 1,413.11, and the Nasdaq composite index fell 0.88 percent to 2,990.46. The Nasdaq hadn't closed below 3,000 since Aug. 6.
Companies of all stripes signaled that the economy is far from healed. Revenue fell compared with a year ago at DuPont, 3M, UPS and Xerox.
Because of their global footprints, those companies augur how the world economy is performing.
Chemical maker DuPont said it will have to cut jobs and other expenses to make up for weak demand. 3M, which makes products including Scotch tape and coatings for LCD screens, cut its profit prediction for the year.
UPS, the world's largest package-delivery company, warned that the pace of global growth remains uneven. And Xerox said the "challenging economy" is causing "cost pressures for large enterprises." -- AP