Dow -104.79 (-0.82%)
Nasdaq -31.10 (-1.29%)
S&P 500 -12.23 (-0.88%)
News That Moved the Market
Oil and Weak Dollar Push Market Down. Markets lost ground Tuesday, reacting to another all-time high in crude and all-time low in the U.S. dollar versus the euro. Crude jumped another $1.89, or 1.6%, to $119.37/barrel. Buying momentum is still remarkably strong, even after the 88% return oil has given investors in the last year. Weakness in the U.S. dollar was primary reason for crude's move, with the dollar breaking the $1.60 barrier versus the euro. The ECB hinted that inflation pressures may force it to increase interest rates. Tech stocks were under greater pressure than the other indices because Texas Instruments (TXN, -5.8%) issued a weak outlook late Monday.
Weak Reports All Around. Stocks were also pressured by some disappointing earnings and outlooks throughout many sectors. The CME Group (CME, -7.6%) missed both the top and bottom line estimates. DuPont (DD, -3.9%) topped estimates, but investors were disappointed that the company only affirmed guidance for the next year. DuPont warned difficult conditions in the U.S. construction and vehicle markets would continue for the year. Airlines in general were extremely weak, with operator of United Airlines UAL Corp (UAUA, -36.8%) leading the way down. The airline reported a loss of $4.45/share, falling well below the loss of $3.41/share analysts expected. The Amex Airline Index fell more than 12.0%.
Quick Tics: Yahoo (YHOO, -0.0% day; -0.5%) topped estimates, but analysts do not think it was enough to make Microsoft (MSFT, -0.5%) increase its takeover bid…Existing home sales fell 2.0%, which was slightly better than expected.
Notable Earnings (Full List Here):
Aflac Incorporated (AFL) After Close
Apple Inc. (AAPL) After Close
Biogen Idec Inc. (BIIB) Before Open
GlaxoSmithKline (GSK) Before Open
Philip Morris International (PM) Time Not Supplied
QUALCOMM Inc.(QCOM) Time Not Supplied
Boeing Company (BA) Before Open
UPS (UPS) Before Open
10:30 AM: Crude Inventories