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 Quote - Cramer on DD - Stock Picks) 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 Quote - Cramer on TXN - Stock Picks), 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 Quote - Cramer on AXP - Stock Picks) 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 Quote - Cramer on CFC - Stock Picks) 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.