Markets take a dive on heels of 4th quarter earnings report
The first batch of 4th quarter reporting came out on Tuesday, and Wall Street was mull and a bit pessimistic about the results. Alcoa Inc, announced in after hours trading that it fell short of expected forecasts for the 4th quarter. Shares in the aluminum company have slid 11% as of current. This week is expected to have a slew of earnings reports for the 4th quarter, an important week for investors to forecast the economic recovery. The Alcoa reporting along with other factors contributed to the market losing ground by the closing bell.
Chevron warned Monday that it is expecting low fourth-quarter earnings and would drag down its fourth-quarter results, blaming the economic slowdown. Other news making an impact was the Fed releasing numbers on the growing trade deficit. The Federal government released figures that showed the November trade deficit expanded to $36.4 billion from a revised $33.2 billion in October. The figure is more than the $34.5 billion that was expected by forecasters.
Investors have been taking the news with pessimism; worried that the current cost cutting companies have been enacting is enough to produce revenues. Wall Street biggest sliders for Tuesday include the following:
Caterpillar Inc., the maker of construction and mining equipment, fell $1.89,to close at $62.24. The banking sector suffered as well as Bank of America Corp. fell 57 cents to $16.36 and JPMorgan fell $1.04, to $43.49. Intel fell 34 cents to $20.61, and video game publisher Electronic Arts slid $1.42 to $16.85. Both Intel and JPMorgan are expected to release their Q4 earnings later this week on Thursday and Friday respectively for both companies.
The Dow Jones took a nose dive and lost 36.73 points, or 0.3 percent, to close at 10,627.26.
In Japan, the Nikkei saw no real gains as it stopped a march to record highs, closing at 10,879.14. In Europe, Britain’s