Earnings, Subprimes Sink Stocks

Dow falls 226.47 after lackluster reports, increased negativity
By Greg Atwan,  Newser User
Posted Jul 24, 2007 3:59 PM CDT
Grill in this Jan. 22, 2007 file photo in Baltimore. American Express Co. is expected to release quarterly earnings on Monday, July 23, 2007. (AP Photo/Chris Gardner, file)   (Associated Press)
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(Newser) – The Dow slid 226.47—nearly 2%—back to 13716.95 today, after mediocre earnings reports helped deflate a giddy mood and remind traders of persistent woes from the subprime sector. American Express reported lower-than-expected second-quarter earnings dampened by higher marketing costs; DuPont also released disappointing numbers.

The Nasdaq dropped 50.72 to 2639.86, and the S&P closed at 1511.04, down 30.53. A major trader told the Journal that the poor reports accounted for the unusual off day, but confessed that much of the negativity on Wall St. was "just feeding off the whole subprime scenario": lender Countywide sank 11% today after dismal earnings.