Wall Street Stumbles Day After Rally

Dow Drops More Than 200 Points As Investors Scrutinize Earnings Reports To Gauge Economic Woes

(AP)  Wall Street pulled back Tuesday as investors worried that companies' forecasts signal little easing of the weakness gripping the economy. After logging sharp gains in the previous session, the Dow Jones industrial average fell 2.5 percent, while the Nasdaq composite index lost more than 4 percent following a weak showing by technology names.

Some retreat was to be expected after the Dow shot up 413 points on Monday. But investors poring over a mix of third-quarter earnings reports found enough unsettling outlooks, including forecasts from DuPont Co., Texas Instruments Inc. and Sun Microsystems Inc.

Still, investor anxiety appears to have lessened considerably compared to the previous two weeks when fears about tightening world credit and the health of the economy battered stocks across the globe.

Strains in the credit markets eased further in response to a sweeping series of bailout measures by world governments, including a joint U.S. and European plan to buy stakes in private banks to boost to their lending. Demand for Treasury bills, regarded as the safest assets around, lessened further Tuesday in a sign that credit markets are gradually returning to a healthy state.

But analysts have warned that the market will see a stretch of volatile sessions as Wall Street recovers from this month's huge drop. Even though investors have been expecting third-quarter earnings, and even fourth-quarter forecasts, to reflect the damage from the financial system's problems, the reality of companies' reports have been unnerving.

"It's just this back-and-filling stuff. It's driven by earnings, yes, but also emotion," said Harry Clark, chief executive of Clark Capital Management in Philadelphia. "It's going to be this tug-of-war for a couple weeks at least."

The technology-focused Nasdaq saw steeper declines than the other major indexes after server and software company Sun Microsystems warned it would post a big loss for its fiscal first quarter and book a write-down. Texas Instruments shares fell to their lowest level in more than five years after the chip maker turned in disappointing earnings and issued a lackluster forecast amid slowing orders.

According to preliminary calculations, the Dow fell 231.77, or 2.50 percent, to 9,033.66.

Broader indexes also declined. The Standard & Poor's 500 index fell 30.35, or 3.08 percent, to 955.05. The Nasdaq composite index shed 73.35, or 4.14 percent, to 1,696.68.

Declining issues outpaced advancers by about 2 to 1 on the New York Stock Exchange, where volume came to a light 1.16 billion shares.

"Clear" ... phmmft ... "Clear"

It is said that when Thomas Aquinas passed away his robes literally roiled as lice and other parasite that lived on the body left the soon to be cold body.

But now imagine one of the parasite marching up to Thomas''s ear and shouting "get up man ... yea can''t die here ... ye''ve not gotten us home yet". This is in effect what Bernanke has told congress.

"Pump more blood in him" Bernanke says "700 billion is not enough ... we need more blood" "150 billion more". "Come on man we have to keep this economy propped up long enough to get out of town"."Dead" Bernanke says "its not dead" "Clear" hit him again man "Clear"

Enough ... the global experiment is over. Mene, Mene, Tekel, Upharsin.

[donevis-2009]

Lord, watching the ticker in the past couple of weeks has made me sick. Highs and lows of a crack head!!

[donevis-2009]

read where the banking issues are/were because of Bill Clinton signing into law rules that required banks to give out loans to people who would not of gotten loans.. And it took this long for those bad loans to catch up with our economy? It was back in 1999..

Posted by DoILookligaf at 04:21 PM : Oct 21, 2008

It was Bush that used this law to prop up Freddie and Fanny to really get the ball rolling. "Everyone in America, no mater what income level, should be able to acquire their own home". Give em the money.

[iphyt4u]

The recession has just started, think it''s a good time to invest? Don''t be stupid, the worst will hit next year. Take what money is there, and 10 months from now reinvest. Bush''s free market policies will take at least a year to play out. Thank god we have an election coming up.

[noloyalisti]

This is only the beginning unless We the People rise up and demand the fascist system of government be rolled back. We have let the military and the big multi-national corporations take over the government.

Neither of these entities cares in the slightest about our welfare or in some cases whether we live or die. In fact, they are both cut throat defenders of American empire and exploitation all over the world. There is STILL time to boycott and strike.

[random_radar]

"Well i have lost 5 million dollars in the market.

Posted by tannerbird at 03:00 PM : Oct 21, 2008"

At least you have something to lose. I have nothing to lose.

Viva la revolucion! Destroy the system.

[donevis-2009]

This is all Clintons fault. You libs should lower your heads in shame!

Posted by gop_will_win at 01:30 PM : Oct 21, 2008

Well now that you''ve someone to blame and your OOH so smart, what shall we do know? Let Bush straighten it out? He tried but all he wound up doing is giving a bunch of our money away. As he demanded we had to give it away quick. Bush didn''t mind though he''s laughing all the way to the Bank and he isn''t using BOA. He stuck all his in a Saudi Bank. Kiss the caboose, will win. Your just a government plant to post this crapola anyway.

[tannerbird]

O i did not tell you that the 5 million i lost was republican play money.

[tannerbird]

Well i have lost 5 million dollars in the market.

[tannerbird]

Its time to sell off and make some money suckers

[tannerbird]

This s hoover''s fault if not for the great depression we would not know where we are going.

[gop_will_win]

This is all Clintons fault. You libs should lower your heads in shame!