US stocks dive as blue chips slash forecasts
NEW YORK (AFP) - Poor earnings and forecasts from major US industrial firms added to a global markets downturn to send US stocks plummeting on Tuesday, with DuPont losing 9.1 per cent on its earnings plunge.
Weak reports and guidance from DuPont, United Technologies, UPS, Xerox, Radio Shack and 3M reinforced views that the US corporate earnings boom is stalling, sending buyers toward the doors.
The Dow Jones Industrial Average plunged 243.36 points (1.82 per cent) to finish at 13,102.53. The broad-based S&P 500 sank 20.71 (1.44 per cent) to 1,413.11, while the Nasdaq Composite lost 26.49 (0.88 per cent) at 2,990.46.
Dow member DuPont led the rout, its 98 per cent fall in earnings and lowered 2012 outlook evidence of the slowing global economy. The company said it will cut around 1,500 jobs over the next 18 months.