U.S. Stocks Retreat


U.S. stocks slid for a second day after investors from George Soros to Marc Faber predicted the rebound in equities will falter as the market braces for a seventh straight quarter of declining earnings.

General Motors Corp. plunged 12 percent and Caterpillar Inc. dropped 5.9 percent. Applied Materials Inc. retreated 8.7 percent after a contract for solar equipment was slashed by $1.65 billion. Archer Daniels Midland Co. sank 11 percent after Citigroup advised selling the shares, while Exxon Mobil Corp. and ConocoPhillips lost at least 1.9 percent as Barclays Plc cut its earnings estimates for the energy industry.

The Standard & Poor’s 500 Index decreased 2.4 percent to 815.55. The Dow Jones Industrial Average tumbled 186.29 points, or 2.3 percent, to 7,789.56. Both measures have surged at least 19 percent since sinking to the lowest levels in a dozen years on March 9. Almost eight stocks fell for each that rose on the New York Stock Exchange.

European shares slumped for a third day and Asia’s regional benchmark snapped a four-day winning streak. Alcoa Inc., the first Dow average company to post results for the January-to- March period, kicked off the earnings season by reporting a wider-than-estimated loss.


TradingEconomics.com, Bloomberg
4/7/2009 2:12:46 PM