Stocks Tumble as Tech, Bank Earnings, Outlook Disappoint
NEW YORK ( TheStreet) -- U.S. stock markets dropped on Wednesday as technology and financial stocks led a broad-based decline after earnings reports from Bank of America
The S&P 500 fell 1.43% to 1,552.
Bank of America plunged 4.7% to $11.70 after the Charlotte, N.C-based banking giant reported bottom-line results that missed expectations on lower mortgage-banking income .
"This rally has gone beyond what's justifiable, primarily because most of the
Yahoo!, the Internet giant, posted quarterly earnings that beat Wall Street expectations but revenue was less-than-expected and guidance also came in short of estimates. Shares slipped 0.34% to $23.71 after declining as much as 2.8%.
Intel, the world's largest semiconductor maker, edged past Wall Street's sales estimates for the first-quarter in results released Tuesday afternoon even as earnings fell below forecasts. For its fiscal second quarter, Intel expects revenue of $12.9 billion, plus or minus $500 million, broadly in line with Wall Street's forecast of $12.85 billion. Shares gained 0.07% to $21.93.
"We are in the heart of earnings season and although most companies have beaten the EPS estimates, once again the major concern is that revenue and outlooks have been weak," Ryan Detrick, a Cincinnati-based senior technical strategist at Shaeffer's Investment Research said in an email.
The FTSE 100 in the UK fell 1% and the DAX in Germany tumbled 2.3%.
Market reaction was muted when the Federal Reserve presented its Beige Book report suggesting that overall economic activity expanded at a moderate pace between late February and early April. The report is published about two weeks before the next monetary policy meeting.
A standout amidst all the lackluster quarterly filings was Mattel
Another prominent gainer was Abbott Laboratories
Bank of New York Mellon