Disappointing Corporate Earnings Hurt Stock and Oil Prices

Posted October 23rd, 2012 at 11:30 am (UTC-5)
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Disappointing corporate earnings, and continuing worries about Spain's battered economy cut stock prices on key European and U.S. exchanges Tuesday. Crude oil prices also declined.

France's CAC-40 and Germany's DAX were down more than two percent in late trading. At one point during mid-day trading in New York, the Dow and the S&P 500 were off 1.7 percent or more.

Analysts say the declines follow weaker than expected earnings from major companies like IBM, FedEx, and McDonald's. Chemical company DuPont said it will cut 1,500 jobs after profits declined sharply.

Traders apparently saw the disappointing earning reports as a sign that the economy will slow down, cutting demand for energy. That perception is one reason that oil prices declined in key markets.