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Dow drops 200 pts on weak earnings, election fears

Wednesday, October 12, 2016 - 01:21

Wall Street sold off on Tuesday as disappointing corporate reports gave a sour tone to the start of earnings season and investors digested possible changing dynamics for the upcoming U.S. elections. Bobbi Rebell reports.

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Tough day for U.S. stocks as investors focus on earnings season. U.S. financial markets are expected to be more volatile as the earnings season turns the spotlight on valuations, while a tight race for the White House, and a potential U.S. interest rate hike by the year-end, add to the jitters. Alcoa kicking off the quarterly reporting with a big miss sending its shares down dramatically. Samsung is now scrapping the Galaxy Note 7. The stock lost almost $20 billion in market cap on the news, and the fiasco creates even more opportunity for Apple's new iPhone, according to Ross Gerber of Gerber Kawasaki: SOUNDBITE: ROSS GERBER, PRESIDENT AND CEO, GERBER KAWASAKI (ENGLISH) SAYING: "The new phone is a good phone, and the software is great. But this is just a fortuitous event that Samsung actually made a phone that explodes. Then replaced them with exploding phones. And this is a huge, huge error for Samsung, and really gives going into the Christmas season Apple just a great legway." Wells Fargo's chief financial officer says, the penalties tied to the bank's opening up unauthorized accounts won't impact third-quarter earnings much, according to the Wall Street Journal. The comments were made on a call with Wells Fargo senior executives, according to the newspaper. In Europe, shares were weighed down by weakness on commodity stocks.

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Dow drops 200 pts on weak earnings, election fears

Wednesday, October 12, 2016 - 01:21