11:40 AM New York – Stocks on Wall Street declined as global growth worries resurfaced and the latest batch of earnings disappointed analysts. European auto sales dropped for the eighteenth month in a row. Bank of America, Intel and CSX traded lower after reporting earnings.
Market volatility continued for the second week in a row as the earnings season picked up steam and worries of global economic growth dragged the market sentiment.
Market indexes opened lower after European auto sales declined for the eighteenth month in a row and construction output fell in the euro zone.
The S&P 500 index dropped 1.5% or 23.5 to 1,551 and the Dow Jones Industrial Average declined 1.2% or 174 to 14,583.
Earnings dominated market trading and Bank of America declined 5% after it reported first quarter earnings that were lower than expected and commercial real estate reported wider losses.
Intel declined after the largest chip maker reported weaker than expected earnings and estimated annual earnings in line with expectations.
European Markets Drop 2%
Auto sales in the European Union shrank 10.3% in March from a year ago, a decrease for the eighteenth month in a row, the European Automobile Manufacturer’s Association said Wednesday.
Sales in the quarter to March declined 9.8% from a year ago period, the worst decline since the association started collecting data in the region in 1990.
Germany led the decline in the region with a loss of 17.1% and sales in France fell 16.2%. Sales at UK, which is outside the currency zone but in the union, increased 4.9%.
In all, 1.31 million cars were sold across the European continent in March.
Stocks in Review
) climbed 2.5% or 90 cents to $37.31 after the health care company said total revenue in the first quarter ending in March increased 2% to $5.4 billion. Net earnings in the quarter plunged 56% to $544 million or 34 cents a diluted share compared to $1.24 billion or 78 cents.
For the full year, the Abbott expects diluted earnings per share in the range of $1.98 to $2.04. For the second quarter, the health care provider expects diluted earnings per share between $0.43 and $0.45.
Bank of America Corporation
) declined 4.4% or 55 cents to $11.72 after the financial service provider reported total revenue in the first quarter ending in March increased 5% to $23.71 billion.
Net earnings in the quarter surged more than six-fold to $2.26 billion or 20 cents a diluted share compared to $328 million or 3 cents.
) dropped 2.6% or 63 cents to $23.50 after the transportation supplier reported revenue in the first quarter ending in March nearly flat at $3 billion. Net earnings in the quarter increased 2% to $459 million or 45 cents a diluted share compared to $449 million or 43 cents.
) slipped 1.2% or 27 cents to $21.64 after the chip maker stated revenue in the first quarter ending in March slipped 2% to $12.6 billion. Net income in the quarter plunged 25% to $2.04 billion or 40 cents a diluted share compared to $2.74 billion or 53 cents.
The company added gross profit in the quarter plunged 9% to $7.1 billion.
Intel expects second quarter revenue to be $12.9 billion, plus or minus $500 million.