Stocks Sunk by Underwhelming Earnings, Data, Europe Worries
Also, the Federal Housing Finance Agency said that U.S. house prices rose 0.8% on a seasonally adjusted basis to May from April. The previously reported 0.8% in April was revised downward to a 0.7% increase. For the 12 months ending in May of 2012, U.S. prices rose 3.7%.
U.S. stocks finished with deep losses Monday as questions about Greece's ability to live up to austerity measures and soaring Spanish bond yields -- even after the continent's finance ministers on Friday backed the details of a hefty aid package -- reignited investor frustration about the pace of progress in the eurozone. Late Monday, Moody's slashed the outlook on Germany's triple-A rating to negative from stable, thanks to European uncertainties.
Officials from the European Commission, the European Central Bank and the International Monetary Fund arrive in Athens Tuesday and begin their audit of Greece's progress in meeting the terms of its bailout agreements. European Union officials are reportedly saying that Greece will need more debt restructuring.
The FTSE in London settled down 0.63% and the DAX in Germany slipped 0.45%. The Hong Kong Hang Seng finished down 0.79% and the Nikkei in Japan closed down 0.24% on Tuesday.
At last check, the benchmark 10-year Treasury was up 13/32, lowering the yield to an anemic 1.391%. The greenback was up 0.30%, according to the dollar index.
September crude oil futures settled up 36 cents at $88.50 a barrel. August gold futures settled down $1.20 at $1,576.20 an ounce.
Wednesday could be another tough session after Wall Street darling Apple(AAPL) came in short of consensus expectations on both the top and bottom lines with its fiscal third-quarter results. The news sent the shares down more than 5% in extended trading.
Netflix(NFLX) was also a big loser after the close. The streaming movie and DVD-by-mail company outperformed the average analysts' view in its latest quarter but gave a bleak outlook, forecasting a potential loss in the third quarter.