Credit Worries Wallop Stocks
Updated from 4:08 p.m. EDT
Stocks slid hard Tuesday as new worries about the credit arena and a profit shortfall at DuPont (DD) overshadowed another round of mostly solid earnings reports elsewhere.
The Dow Jones Industrial Average lost 226.47 points, or 1.62%, to 13,716.95. The S&P 500 fell 30.53 points, or 1.98%, to 1511.04, and the Nasdaq plunged 50.72 points, or 1.89%, to 2639.86.
Traders were focusing on the negatives, including the fact that DuPont, a component of the Dow, missed second-quarter expectations. The chemicals concern kept its full-year forecast, but shares slid $3.36, or 6.3%, to end at $49.90.A disappointment from Texas Instruments (TXN), which reported after the previous close, hit tech stocks. The chipmaker said its second-quarter earnings were in line with consensus targets but down from a year ago, and its sales outlook was on the light side. TI fell $1.72, or 4.5%, to $36.46. Weighing further on the market were renewed concerns about debt, which have popped up several times in recent months. After the previous close, American Express (AXP) topped analysts' profit estimates, but the financial services giant said it had to increase its loan-loss reserve because of a higher rate of delinquencies. The Dow component's stock lost $3.49, or 5.4%, to close at $61.17. Meanwhile, lender Countrywide (CFC) missed by a wide margin, citing increased credit-related costs, and lowered its 2007 guidance, saying the second half will be challenging. It also said liquidity for mortgage securities has been reduced. Shares of Countrywide tumbled $3.56, or 10.5%, to $30.50.
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