Market Backs Off Milestone

After flirtation with 14K, reality bites
By M. Morris,  Newser Staff
Posted Jul 20, 2007 4:04 PM CDT
Traders work on the floor of the New York Stock Exchange on Tuesday, July 17, 2007. The Dow Jones industrial average swept past 14,000 for the first time Tuesday after a relatively tame inflation report...   (Associated Press)
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(Newser) – A week of record highs ended with a thump today as the major markets plummeted after a flurry of disappointing quarterly earnings reports. The Dow, which crested 14,000 yesterday, dropped 149.33 to close at 13,851.08, off more than 1%. The S&P 500, beset by worries about banks' earnings, fell 18.98 to 1,534.10. The Nasdaq dropped 32.44, closing at 2,687.60.

Google and Caterpillar missed estimates and led the Dow retreat. The Internet giant spent heavily on staffing and product development, dragging down profits. Caterpillar chalked up its drop to softening demand for construction equipment, yet another ripple from the falling rock that is the housing market. Citigroup exceeded expectation but lost ground after announcing an increase in bad-loan reserves.