U.S. Stocks Drop on Earnings; Texas Instruments, Freeport Fall (Elizabeth Stanton)

Created by : Francis Goodwin View profile

Oct. 21 (Bloomberg) -- U.S. stocks slid as companies from Texas Instruments Inc. to Freeport-McMoRan Copper & Gold Inc. reported profit and revenue that failed to meet analysts' estimates.

Texas Instruments, the second-largest U.S. semiconductor maker, declined 6.3 percent, while Sun Microsystems Inc. retreated 17 percent after reporting a loss and posting revenue that fell short of consensus projections. Freeport-McMoRan, the largest publicly traded copper producer, slumped 11 percent. Western Union Co. tumbled 18 percent after the world's biggest money-transfer business withdrew long-term profit targets because of uncertain global markets.

``Investors are focusing on the weakening economy,'' said Doug Peta, a market strategist at J&W Seligman & Co. in New York, which manages about $15 billion. ``The third quarter earnings season is going to be a rough stretch for the market because just about every company is going to provide fourth- quarter guidance that's muted at best.''

The Standard & Poor's 500 Index lost 30.35 points, or 3.1 percent, to 955.05. The Dow Jones Industrial Average tumbled 231.77, or 2.5 percent, to 9,033.66. The Nasdaq Composite Index decreased 73.35, or 4.1 percent, to 1,696.68. More than five stocks fell for each that rose on the New York Stock Exchange.