As more disappointing quarterly earnings reports came in today, and even more expected throughout the week, Dow futures got knocked down a notch once again in the U.S. stock market on Tuesday.
An hour before the opening bell rang, Dow Jones Industrial Average had dropped by 33 points, or 0.3 percent, to 11,268. Since then, Dow futures dropped an additional 34 points at 11,234.
Some of the decline can be attributed to earnings reports that have been coming in – and anxious anticipation of additional reports throughout the week – but much of the anxiety stems from the ongoing financial woes in Europe.
On Monday, Moody’s Investor Service announced that it was considering downgrading France’s stellar, triple-A credit rating in the next three months in light of the ongoing credit problems. France’s finance minister warned on Monday that France’s economy may grow at a slow pace over the next year, putting pressure on corporations to pick up the slack.
Additionally, there are concerns that the Greek government will miss a payment on its bonds, causing an even bigger impact on the banks who hold the bonds and, as a result, damaging the already-struggling European economy even further.
The stock market may get some form of relief, albeit a small one, tomorrow, as Apple and Intel are expected to release their third quarter earnings reports after the market closes.
Source: AP
