Stocks decline as oil rises - East Valley Tribune: Business

Stocks decline as oil rises

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Posted: Wednesday, April 23, 2008 2:04 am | Updated: 11:59 pm, Fri Oct 7, 2011.

NEW YORK - Wall Street pulled back Tuesday, with the Dow Jones industrials tumbling more than 100 points as a rush of quarterly results from bellwethers like AT&T, DuPont and McDonald's Corp. failed to impress investors. Oil prices also reached fresh highs.

AT&T's earnings met Wall Street's forecast while McDonald's and DuPont reported stronger-than-expected numbers. But DuPont said a U.S. slowdown will offset growth abroad and McDonald's said an important metric of its sales showed a decline.

All three companies are among the 30 stocks that make up the Dow.

The comments gave trading a cautious tone. With hundreds of companies still to report results, investors are anxious over what the figures might say about the economy. The Dow fell 104.79 to 12,720.23. The Standard & Poor's 500 index fell 12.23 to 1,375.94, and the Nasdaq composite index fell 31.10 to 2,376.94.

Bond prices edged up. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.68 percent from 3.72 percent late Monday. The yield moved to 3.69 percent in after-hours trading.

The dollar was mixed against other major currencies, while gold prices rose.

Some of the latest earnings reports appeared to confirm concerns about the economy, analysts said.

"It takes a while for the economy's situation to work its way down to the companies," said Alexander Paris, economist and market analyst for Chicago-based Barrington Research. "What's going on is earnings are reflecting the reality of a slowing economy, and that should go on until the second half of the year."

Late Monday, Texas Instruments warned of a weak market for the chips it makes for high-end mobile phones. The company's results were nearly in line with Wall Street's expectations.

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