Wall Street dropped after big US companies delivered a mixed set of profit reports and rising Treasury yields tightened the vise further on the stock market. Worries about war in the Middle East also dragged on the market Wednesday.
- The S&P 500 fell 1.3%.
- The Dow Jones Industrial Average lost 332 points, or 1%.
- The Nasdaq composite fell 1.6%.
Crude oil prices jumped sharply overnight following a deadly explosion at a hospital in the Gaza Strip. Gold kept rising as investors looked for safer investments. The 10-year Treasury yield climbed to touch its highest level since 2007.
On Wall Street, United Airlines slumped 9.7% after it showed how big a hit to profits it may take because of surging fuel prices and the suspension of flights to Tel Aviv. It gave a profit forecast for the last three months of the year that fell well short of analysts' expectations. The forecast overshadowed United's reporting a bigger profit for the summer than Wall Street had predicted, the AP reports. Other airlines fell in concert, with American Airlines down 4.9% and Delta Air Lines down 4.4%. Morgan Stanley also tumbled, down 6.8%, even though it likewise reported a bigger profit for the latest quarter than analysts expected. Investors focused on a weaker-than-expected showing by the company's wealth management business, analysts said.
On the winning side of Wall Street was Procter & Gamble, the giant behind such brands as Charmin, Febreze, and Oral-B. It rose 2.6% after reporting stronger profit than expected for the latest quarter. Its revenue rose after it increased prices for its products. Nasdaq rose 4% for one of the stock market's bigger gains after it reported stronger profit for the latest quarter than expected. It benefited from high-profile stock debuts on its trading exchange, as well as growth for its anti-financial crime business.
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