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U.S. stocks lower after the open; Dow Jones sheds 0.97%

Published 10/27/2010, 10:51 AM
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Investing.com – U.S. stocks were lower after the open on Wednesday, amid speculation over the scope of additional monetary easing by the Federal Reserve, while disappointing earnings reports led markets lower.

During early U.S. trade, the Dow Jones Industrial Average was down 0.97%; the S&P 500 index fell 0.84%, while the Nasdaq Composite index was down 0.28%.

Investor confidence was undermined after a Wall Street Journal report late Tuesday said that the Fed was likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, contrary to market expectations of purchases in excess of USD 1 trillion.

Meanwhile, in earnings news, shares in wireless service provider Sprint tumbled 10.17% after it reported a third-quarter net loss of USD 911 million, compared to a loss of USD 478 million in the year-earlier period. The company also said that they lost 107,000 customers in the third quarter.  

Elsewhere, shares in appliance retailer Whirlpool plunged 5.87% after the company said its third-quarter net income dropped 9.2% to USD 79 million dollars, down from USD 87 million from a year-earlier.

But shares in semiconductor manufacturer Broadcom soared 8.70% after the company reported that third-quarter net income rose to USD 327 million, compared to USD 85 million from a year-earlier. 

Elsewhere, shares in the commodity sector slumped as a stronger U.S. dollar weighed crude oil and metal prices. Shares in oil and gas giant Exxon-Mobile tumbled 1.52%, rivals Chevron saw shares fall 1.30%, while shares in the world’s largest aluminum producer Alcoa plunged 1.71%.

Meanwhile, across the Atlantic, European stock markets were down: France’s CAC 40 dropped 0.65%; Germany's DAX fell 0.49%; Britain's FTSE 100 tumbled 0.93%; and the EURO STOXX 50 was down 0.62%.

Earlier in the day, official U.S. data showed that new home sales rose-more-than-expected in September, while a separate report showed core durable goods orders fell unexpectedly in September while durable goods orders rose more-than-expected. 



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