U.S. stocks fell as results at companies from Morgan Stanley to Johnson & Johnson disappointed investors and the International Monetary Fund lowered its outlook for global growth.
Johnson & Johnson tumbled 3.4 percent after forecasting lower earnings in 2015 as competition cuts into revenue for some of its best-selling drugs. Morgan Stanley slipped 1.5 percent after profit missed analysts™ estimates. Energy shares declined 0.8 percent as oil futures tumbled 3.9 percent. A gauge of homebuilders retreated 3.1 percent, after plunging almost 7 percent last week.
The Standard & Poor™s 500 Index dropped 0.6 percent to 2,007.22 at 12:01 p.m. in New York. The Dow Jones Industrial Average lost 139.61 points, or 0.8 percent, to 17,371.96. The Russell 2000 Index tumbled 1.2 percent. Trading in S&P 500 companies was 20 percent above the 30-day average for this time of the day. U.S. exchanges were closed yesterday for Martin Luther King Day.
The S&P 500 slipped 1.2 percent last week, even with a 1.3 percent rally on Friday, as falling oil, shrinking earnings estimates and concern that slowing global growth will hurt the U.S. economy led to selling. The index is down 2.5 percent for the year.
Source : Bloomberg