The following is an excerpt from Angela Moon | October 23, 2012 | Reuters.com |
(Reuters) – Global shares slipped more than 1 percent and the euro hit a one-week low versus the dollar on Tuesday after weak U.S. corporate earnings results and downgrades of several indebted regions of Spain raised concerns about the global economy.
The Dow and the S&P 500 stock indexes were off more than 1 percent as large multinational companies including Dupont (DD.N) and United Technologies (UTX.N) reported disappointing profits and earnings outlooks.
The euro fell as low as $1.2950, its lowest level against the dollar since October 16. It last traded at $1.2964, down 0.7 percent on the day. The euro also dropped against the yen as Spain’s borrowing costs spiked after rating agency Moody’s downgraded five of the country’s regions, including economically important but deeply indebted Catalonia.
The decline in U.S. stock prices was broad with all 10 of the S&P 500′s sectors down. Dupont shares fell 9.1 percent to $45.23 after the chemical maker slashed its earnings forecast and reported disappointing quarterly results.
“The market has gone from taking a macro view focused on the EU and China to focusing on earnings, and the earnings are disappointing,” said Timothy Hoyle, director of research for Haverford Investments in Radnor, Pennsylvania.
“We expected earnings to be flat to down a few percent, but we did not anticipate the fact that the third quarter got progressively weaker for many companies.”
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