Stocks fell well into the red for the day as earnings season kicked off with a miss.
All three indexes declined by at least 1% in trading, led by the tech-heavy Nasdaq. Additionally, oil stumbled a bit while the bond market also sold off.
We’ve got the headlines, but first, the scoreboard:
- Dow: 18,126.40 , -202.64, (-1.11%)
- S&P 500: 2,136.26, -27.40, (-1.27%)
- Nasdaq: 5,246.99, -80.88, (-1.52%)
- WTI crude oil: $50.77, -0.58, (-1.13%)
- 10-year Treasury yield: 1.759%, +0.023. (+1.30%)
- Alcoa started off earnings season on a rough note. The aluminium producer missed on both revenue — posting only $5.21 billion against analyst estimates of $5.33 billion and earnings per share — coming in at $0.32 per share against projections of $0.34 per share. Alcoa’s announcement also marks the start of earnings season.
- Currencies had a wild day. The British pound continued its slide on Brexit fears. The South African rand weakened after it was announced that the country’s finance minister would go on trial for corruption. The Chinese yuan slid to a 6-year low against the dollar after being pegged at its lowest level in years earlier in the week. The Swedish krona sank on bad inflation data.
- Illumina crashed. The biotech firm said that it would miss its revenue guidance and analysts’ expectations. After the disappointing news, shares of the company tanked by 25% in trading on Tuesday.
- Samsung will no longer produce the Galaxy Note 7. The phone-maker said it would stop production of its large smartphone after the company was unable to resolve an issue that caused the Note 7 to explode. The company had tried to replace the part causing the problems, but they persisted and led to the production halt.
- A leaked Wells Fargo conference call revealed that the recent scandal hasn’t hurt its business. The call among bank executives, a recording of which was obtained by the Wall Street Journal, laid out the impact of the recent scandal and investigation on the company’s profits. According to executives, the bank was planning on keeping it quiet that the scandal had not made much difference.