Tuesday, January 27, 2015

US Stocks Seen It's Biggest Drop in 3 Weeks

There are new fears the economy is going to fall. Companies are showing that sales are down and companies are beginning to question their growth with DOW reporting triple digit declines. DOW Jones Industrial stocks have seen the biggest drop in 3 weeks according to the Market Watch.

USA Today reports, the Dow Jones industrial average ended down 291 points Tuesday as earnings from a batch of big-name companies pulled stocks sharply down. As companies are turning in their year end reports and adding up their profits and losses, they are finding that sales are down overall and many companies are losing on expenses.

A&T is reporting a $4 billion dollar loss on expenses. AS a result, the lousy earnings are dragging down the market and the DOW plunges more than 350 points. 

Caterpillar's stock slid 7% helping drag down the DOW. Profits plunged 25% in the fourth quarter. With the a slow in demand on Caterpillar's equipment, 2015 is beginning to look bleak for Caterpillar.

Other strong markets such as Microsoft and Nasdaq has also seen a serious decline. China and Hong Kong are seeing a serious decline in their markets along with the U.S. The U.S. depends highly on foreign investors, with markets dropping in the foreign markets the U.S. market exchange could take a serious blow for 2015. Which translates to the U.S. economy could take a serious hit this year. 

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