US Stocks Lower as Earnings Disappoint

U.S. stocks traded firmly lower on Tuesday as disappointing results from aluminum giantAlcoa Inc. set the tone for the broader market as the third-quarter earnings season gets under way this week.

Shares of Alcoa  dropped more than 9% in early trade, and were on track for their worst daily drop in about five years, according to FactSet data.

A retreat in oil prices also weighed on energy and materials stocks.

The S&P 500 index fell 16 points, or 0.8%, to 2,147, with all of its main sectors trading lower. Health-care and materials sector were leading decliners, down nearly 1.5%.

The Dow Jones Industrial Average dropped 120 points, or 0.7%, to 18,208, with Visa Inc. and Intel Corp leading losses.

Meanwhile, the Nasdaq Composite Index fell 40 points, or 0.8%, to 5,288, dragged down by heavy losses in biotech stocks. The iShares Nasdaq Biotechnology ETF was down 2.5%.

“Today’s slump in stocks is mostly due to a retreat in oil and commodities in general, as well as disappointing earnings from Alcoa,” said Ryan Larson, head of equity trading at RBC Global Asset Management.

via MarketWatch

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza