Baidu Slumps on Soft Guidance; Stocks Rebound as Energy Climbs

Chinese search engine Baidu (BIDU) plummeted in midday trading Tuesday after reporting disappointing revenue guidance in its third quarter.
Author:
Publish date:

Chinese search engine Baidu (BIDU) plummeted in middy trading Tuesday after reporting disappointing revenue guidance in its third quarter. The weaker sales forecast is unsurprising given China's economy is on track for its slowest annual growth in 25 years. Stocks bounced back after a brief dip following consumer confidence figures. Energy stocks rebounded after several days of losses to lead Wall Street higher. Consumer confidence fell at a faster-than-expected pace in July. Though the reading was disappointing, economists note the drop could be temporary. The decline was primarily tied to reduced expectations given turmoil in Greece and higher gas prices earlier this month. Honeywell (HON) spiked on news the company is buying German energy company Elster Group for $5.1 billion.