1. Stocks Tumble as Earnings Disappoint - WSJ.com http://online.wsj.com/article/SB1000142405274870491330457537...
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TODAY'S MARKETS JULY 16, 2010, 12:33 P.M. ET
Stocks Tumble as Earnings Disappoint
By J ON A TH AN CH EN G And DO NN A K AR D OS Y E SA LA V IC H
Investors pulled out of U.S. stocks as a double dose of discouraging reports on the corporate sector and the broader economy sent
the Dow Jones Industrial Average down 200 points.
All 30 of the blue-chip index's components slumped amid concerns the economy isn't recovering quickly enough to spur
corporate growth. The selloff accelerated in midday trading after a report showed consumer sentiment waned, the latest in a
string of downbeat data that slammed Wall Street.
On the corporate front, investors turned pessimistic about growth prospects for major U.S. companies as Bank of America,
Citigroup and General Electric posted lackluster results. There also was concern about how financial-regulatory overhaul will hurt
earnings for the banking sector, which was the biggest decliner on the Standard & Poor's 500-stock index on Friday.
"We're just getting a more consistent picture of very weak growth," said Rex Macey, chief investment officer at Wilmington
Trust. "We're not getting as much growth as we had hoped, but we're still in the camp of growth."
For much of the week, stocks had been able to rise on the back of strong earnings from several bellwether companies. The market
began to reverse those gains on Thursday, snapping the Dow's seven-day winning streak. The Dow is down 0.3% for the week,
while the S&P 500 has given up 0.5%
The Dow was recently
Markets Hub:
Earnings Euphoria down 201 points, or 2%,
Fades to 10157. The Nasdaq
3:54
Composite declined
After an optimistic start to the
week, stocks are deep in the red 2.4% to 2195; the S&P
Friday as big name companies like Google, GE and Bank of 500 declined 2.3% to
America feed concerns about the pace of earnings growth. An
undertone of discouraging U.S. economic data as well as the 1072.
potential fallout from financial regulation is also weighing on
stocks. Paul Vigna, George Stahl and Drew Dowell discuss. "The market keeps
making lower highs and
Associated Press
In this July 15, 2010 photograph, trader John Bowers works on lower lows," since April,
the floor of the New York Stock Exchange. said Ralph Fogel,
investment strategist at
Fogel Neale Partners.
Market Data Center
"As long as this keeps happening, then I want to be very underweight in
Most Actives | Gainers | Losers
equities."
New Highs and Lows | Money Flows
Intraday Futures | Currencies The potential longer-term fallout from the financial-regulation bill that the
Data: Overview | Treasurys | Forex | Crude Senate passed Thursday also weighed on the sector. Citigroup shares fell 4%,
1 of 2 7/16/10 12:55 PM

2. Stocks Tumble as Earnings Disappoint - WSJ.com http://online.wsj.com/article/SB1000142405274870491330457537...
MarketBeat | Deals of the Day J.P. Morgan Chase fell 3.1%, and Bank of America tumbled 7.6%.
Goldman Sachs Group bucked the trend to rise 2.2%, although the stock was
Journal Community
up as much as 4.7% in earlier trading, as the investment bank's settlement
with the Securities and Exchange Commission lifted an overhang on the
stock.
BP slipped 3.9%, although the oil giant's well-integrity test survived the
night as pressures steadily rose, showing that a newly placed cap might have
the ability to completely shut an overflowing well in the Gulf of Mexico.
Despite Friday's declines, the stock is up 10% this week and up 40% off the
multiyear lows hit last month.
Investors will also be watching Apple, as the maker of the iPhone 4 struggles to regain consumers' confidence over its handling of
antenna reception problems on its top-selling smartphone. The company has scheduled a news conference for Friday afternoon.
Apple shares were trading down 0.7%.
In other economic data, the Labor Department said the seasonally adjusted consumer price index fell 0.1% last month, less than
an unrevised 0.2% in May but a bigger decline than expected. Economists had been looking for the rate to remain unchanged.
Core consumer prices, closely watched by the Federal Reserve, were up 0.2%, more than the 0.1% increase expected by
economists. That larger-than-expected increase in core prices shouldn't change expectations that the Fed will hold interest rates
at record lows well into next year, though it will likely ease fears of deflation.
In other markets, the euro hit a two-month high against the dollar, breaking the $1.30 barrier before slipping back slightly.
Treasurys moved higher, with the yield on the 10-year note falling below 3.0%.
Oil futures fell, while gold also dropped.
Steven Russolillo contributed to this article.
Write to Donna Kardos Yesalavich at donna.yesalavich@dowjones.com
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2 of 2 7/16/10 12:55 PM