As earnings fizzle, stocks slip
Equity investors had a chance to grab onto something other than Greece this week, and the result wasn’t pretty. A nascent rally tied to earnings disappeared as blue-chip companies bore the brunt of selling that drove the Dow Jones industrial average down the most since January. Energy and raw-material stockswere driven lower by a global rout in commodities.
Stocks world wide tumbled 2.1 percent, with the MSCI All-Country World Index posting its worst week of the year. The Dow dropped 2.9percent to 17,568.53. The Standard& Poor’s 500-stock index slid 2.2 percent.
The week brought a change of pace for U.S. investors, who chased developments in debt negotiations in Greece and volatility in Chinese equities earlier this month. The focus has since switched toward corporate earnings and a commodity collapse spanning from gold to oil, which showed no signs of slowing down.
Companies from Apple to IBM and Microsoft disappointed investors. In the coming week, 172 companies in the S&P 500 are slated to report quarterly results.
The U.S. Treasury will sell $24 billion in three-month bills and $24 billion in sixmonth bills Monday. They yielded 0.035 percent and 0.135 percent in when-issued trading. It will also sell four-week bills and $26 billion in two-year notes Tuesday, $15 billion in two-year floating rate notes and $35 billion in five-year notes Wednesday, and $29 billion in seven-year notes Thursday.