The Three E's Hit The Stock Market
The three E's are hurting the market today. Earnings, Economic Data and Europe. A compilation of negative earnings, economic news and worries from Europe sent markets lower today. The S&P 500 is trading at 1,236.93, -17.26 (-1.38%). In the last three weeks, the markets have seen a meteoric rise of 15% across the board. It is due for a pull back.
Earnings reports from companies disappointed Wall Street. Cummins Inc. (NYSE:CMI) is trading at $93.02, -5.80 (-5.87%), 3M Company (NYSE:MMM) is trading at $77.94, -4.24 (-5.16%), Netflix, Inc. (NASDAQ:NFLX) is trading at $77.58, -41.26 (-34.72%). These reports all missed Wall Streets expectations.
In addition to earnings, Consumer Confidence was reported at 10am ET. Consumer Confidence for October reported in at 39.8. This was the lowest number since March 2009. Consumer Confidence helped add negativity to the overall market sentiment.
Lastly and probably the most bearish was a report that surfaced saying that a preliminary meeting, prior to the major summit on Wednesday had been canceled in Europe. The market took this as a possible signal a bailout, recapitalization plan may not be a foregone conclusion.