Wall Street retreated for a second day Wednesday, as investor worried about corporate earnings and global economic slowdown.
Commodity producers led the decline, as investors were concerned that weak global economy will slash demand for commodities. Exxon Mobil and Freeport-McMoRan Copper & Gold Inc. tumbled as crude fell more than 5 percent and copper price slid.
Wachovia, which is being bought by Wells Fargo & Co., reported its third straight quarterly loss of 23.9 billion U.S. dollars due to crumbling mortgage markets and write-downs on securities backed by real estate.
Boeing Co. reported profit fell 38 percent after a strike by machinists halted aircraft deliveries.
Merck & Co., the third-largest U.S. drugmaker, said its quarterly profit fell 28 percent and that it would cut more than 10 percent of its work force.
SanDisk briefly dropped over 30 percent, after Samsung Electronics Co. walked away from a bid for the company.
In other corporate news, AT&T Inc., the largest U.S. phone company, posted a 5.5 percent gain in third-quarter profit because of strong sales of iPhones.
Apple Inc. posted soaring iPhone sales lifted profit and Chief Executive Officer Steve Jobs said customers will stay loyal in a recession.
The Dow Jones fell 314.93 to 8,716.50. Broader indexes also turned lower. The Standard & Poor's 500 index slid 33.43 to 921.62and the Nasdaq slipped 35.91 to 1,660.77.
Source: Xinhua
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