Markets Now: Dow Tumbles 275 Points as Earnings Aren't Enough


Want to know why the Dow Jones Industrial Average and other major indexes are doing what they're doing? Check back here for a semi-live look at the volatile markets from Barron's reporters.


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3:20 p.m. Even a better-than-expected quarter from General Electric (GE) couldn't lift the market from its funk. The Dow Jones Industrial Average has lost 275.32 points, or 1.1%, to 24389.57, while the S&P 500 has slipped 31.13 points, or 1.2%, to 2662, and the Nasdaq Composite tumbled 111.24 points, or 1.5%, to 7126.82.

Sure, it hasn't been a perfect first-quarter earnings season thus far, but we've seen plenty of strength, so investors might be forgiven for asking why we're not seeing that translate into more market gains.

Gluskin Sheff's David Rosenberg says that this is nothing new: There have been plenty of times in the past when "the earnings boom gets undercut by issues that pop up and trigger heightened uncertainty and volatility, and with that, a compressed multiple. In fact, it is quite common for earnings to burst to the high side, then flame out, with a recession lurking just a few quarters away." Just look at the second quarter of 2007, the third quarter of 2000, the first quarter of 1997, and the third quarters of 1990 and 1987.

11:30 a.m. It looks like it's going to be a lousy end to what had been a good week.

The Dow Jones Industrial Average has slumped 197.94 points, or 0.8%, to 24,466.95, while the S&P 500 has slipped 0.8% to 2671.35, and the Nasdaq Composite dropped 1.1%, to 7155.53.

Today's weakness began with Apple (APPL), has dropped 3.3% to $167.14 on bearish analyst reports and rumors that China might ban its products. But it's broadened since then, to include other tech companies-- Intel (INTC), Microsoft (MSFT) and International Business Machines (IBM), among them--as wells as consumer staples giants like Coca-Cola (KO) and Procter & Gamble (PG), and oil majors ExxonMobil (XOM) and Chevron (CVX).

If you're looking for a reason, look overseas, where the European Central Bank's Mario Draghi is being quoted as saying that the euro-area growth cycle may have peaked. Don't be surprised if we start hearing more about a potential slowdown in global growth in the days ahead.


Dow Drops 23 Points as GE Jump Not Enough

7:47 a.m. It's a quiet morning on Wall Street as earnings from General Electric (GE) and Honeywell International (HON) steal the spotlight. S&P 500 futures are little changed, while Dow Jones Industrial Average futures have declined 23 points, or 0.1%. Nasdaq Composite futures have dipped 0.1%.

GE has jumped 5.4% to $14.74 after reporting a profit of 16 cents a share, beating forecasts for 11 cents. Honeywell International has risen 0.9% to $149.50 after reporting earnings of $1.95, ahead of forecasts for $190.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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